NEW DELHI, MARCH 31: The Government is working on a proposal to bring about an Ordinance to scrap the Urban Land Ceiling Act. ``I feel that abolition of the Act is the only way out to bring down the highly inflated real estate prices especially in the metros,'' said Union Urban Development Minister Ram Jethmalani. ``Although there are some constitutional problems in the way of its abolition, the modalities to get round the obstacles will be worked out soon.''Speaking to The Indian Express, Jethmalani said that if land prices achieved realistic levels, this would go a long way in solving the current housing problem in big cities. He suggested that since there was a ``national consensus'' in favour of the Act's abolition, an ordinance doing away the Act could be promulgated immediately and later regularised by the Parliament. A proposal to this effect is expected to be put before the Union Cabinet soon for its approval.
Other priority areas for the new minister, for whom the Urban Affairs portfolio came asa surprise, is keeping the BJP's manifesto promise of constructing 20 lakh dwellings every year.
He admitted that this is easier said than done. ``It is going to be a stupendous task getting to that figure and the government cannot do it alone... one has to involve the private sector in terms of finance as well as actual construction.''
According to the Minister, the immediate priority is to locate land on which to construct these dwellings and organise money to raise houses at affordable prices. He was keen to rope in foreign investment in the housing sector. ``This is an infrastructure area where foreign investment is welcome and is in keeping with the BJP's economic agenda too... the proposals of several MNCs which were received by the previous government will be examined,'' he said.
Jethmalani said the government is also in favour of the involvement of the private sector in core areas such as urban management and development of satellite cities to decongest metros and reduce pressure on civicservices.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
