By: Sunil Dahiya, Managing Director, Vigneshwara Developers
Isn’t it ironical that real estate developers are getting into the role of the government in providing housing & infrastructure and still getting the flak? Though the basic need of housing and urban development should ideally be a government initiative as it is also a social need, but government has not been able to provide it even in cities like Delhi and Bombay. In hotbed areas of real estate, you can invite private development, but what happens to other places/areas? Is urban development and real estate not needed there?
I would rather say the government machinery has not been capable enough. The lack of basic development has led to the genesis of slums in Mumbai and other parts of the country and the government has been incapable in providing housing and urban development infrastructure. So at one point of time the private initiative saw an opportunity there and entered to fill the gap. Also the problems made the government incapable & thus the onus of providing urban development & housing infra shifted to the private developers.
Market sentiment entering into urban areas or the demand being generated in those areas do not mitigate the problems. The problem was already there and the private initiative just saw an opportunity to enter these markets. Places like Delhi, Bombay, Calcutta, and Bangalore etc saw an immediate initiative from private sector/private builders. Such an effort not only opened the opportunities but also made them inherit the problems.
Now see the state instrumentalities, MHADA – how many housing units has MHADA been able to bring out to the public? How many CBD’s has MHADA built? Why is MHADA not capable when they have the instrumentality of the state with them, they have the act with them, they have the legislative powers, the financial strength and governing, what stops them from providing housing and urban development. Even after coping with these problems if the private developers are able to bring the results, then obviously it is the incapability of the government machinery.
Instead of appreciating us for dealing successfully with the problems that have been inherited by the developers, we are facing flak for it. Government has not been able to provide it and then shouting on top of their voice about delays, no transparency, taking the public for a ride; all these are normal conjunctures given by the government about the private players. Why the government is not doing it?
As of now what we know is the prerogatives of the government are cheaper fuel, housing & urbanization. But the question is- Are these prerogatives being achieved? Government bodies like NBCC, HUDCO etc have failed to implement such initiatives making private developers inherit the problems along with the initiative of providing housing and urbanization If you take MHADA, DDA, HUDA, how many housing units have they been able to provide. Why are they designing these density norms when they are not able to provide to that density as well?
