MoS Housing & Urban Affairs advocates transparent practices in affordable housing tenders

Affordable homes assurance: The Minister of State for Housing and Urban Affairs, Kishore, has called for transparent practices in affordable housing tenders to ensure timely completion of projects. Speaking at the 16th Naredco National Convention, the minister highlighted the prevalent issue of underquoting prices during tenders in the construction and real estate sector.

Kishore stressed that builders often engage in underquoting, bidding around 15 per cent less than the actual amount during the tender process to secure government contracts for both mega and affordable housing projects. This malpractice leads to incomplete projects and escalating costs towards the end, causing issues for both builders and beneficiaries.

Ending price undercut

Addressing NAREDCO and its senior functionaries, the minister urged an end to the practice of quoting lower prices, emphasising the importance of completing housing projects, especially affordable ones, without delays.

Furthermore, Kishore called upon the real estate industry to ensure a "dust, smoke, and intoxication" free environment around housing and affordable housing projects. He believes this will contribute to India's development in line with the Prime Minister's Vision for 2047, where India aims to become a $30 trillion economy.

Safe sites initiative

Commenting on the Budget Proposals for 2023-24, the State Minister for Housing and Urban Affairs highlighted the need to provide a toxic-free environment for workers in the real estate sector. He emphasised that the goal of completing 2 crore houses in the next 5 years for the poor and downtrodden should focus on quality and sustainability.

Secretary in the Ministry of Housing and Urban Affairs, Manoj Joshi, also emphasised critical reforms in urban planning to achieve India's economic goals. He urged Naredco to work closely with the government, providing essential inputs for the roadmap ahead. Joshi suggested that, like seeking tax relaxations, Naredco should offer pragmatic suggestions to achieve urban planning goals.

Joshi also pointed out that the central government is encouraging all states to increase state property tax, following the recommendation of the 15th Finance Commission, aiming to incentivise state governments for housing and affordable housing projects.

In their addresses, Hari Babu, President, Naredco and Niranjan Hiranandani, Chairperson, Naredco apprised the government of the association's initiatives to build affordable houses, aligning with the Prime Minister's vision for relief for the masses. Both assured the government of Naredco's full support in urban planning.