Land Ceiling Act has failed: Jethmalani

The housing sector would also be brought on par with other infrastructure sectors so that concessions will be available for boosting housing activities, in tune with the BJP Government8217;s resolution to construct two million houses every year, he said. 8220;With these decisions, the Government will not brook any more excuses for stagnation in the housing sector generally given by the builders,8221; Jethmalani asserted.

The provisions of the Act have not only been restricting the supply of landin urban areas but have also led to unnecessary harassment of land holders, he said. The repeal of the Act will release over two lakh hectares of land in 64 cities across the country.

In Maharashtra for instance, over 53,000 hectares of land will be released while in Andhra Pradesh more than 13,000 hectares will be available.

The amount of land available for housing and the land actually under use is very low at just 34 per cent for Delhi according to studies.

In comparison, the land under use in Beijing is 82 per cent, Manila 80 per cent and Bangkok 70 per cent.

Land prices will fall as the supply will reduce the artificially high rates in the cities under this Act. Industrial restructuring will also take place as a result. Most mills in Mumbai and Ahmedabad are on huge tracts of land which can now be sold to give severance packages to workers, the Minister said. Asked whether there would be a cap on FDI in the housing sector, the minister said that the details regarding this was still being workedout.

Jethmalani, who with his deputy Bandaru Dattatreya addressed the press conference, exuded hope that his ministry8217;s recommendation to accord housing the status of infrastructure for availing certain concessions under the Income-Tax Act would come through.

8220;Existing benefits under Section 801a of the I-T Act giving a five-year tax holiday to infrastructure development may be extended to housing sector, which will attract private builders to take up low cost housing,8221; he said. The Minister also said that the housing industry had great multiplier effect and this would be the best way to kickstart the economy.

The ministry has also suggested granting concessions in customs duty for import of equipment used in construction activities, he said and stressed that without latest technology the goal of providing shelter to two million people every year would remain a dream. He said a budgetary support of Rs 1,000 crore would be required to implement his ministry8217;s plan to provide quarters at theearliest to all Government employees, who sometimes have to wait for 25 years for accommodation.

If budgetary allocation is made available in five years8217; time, we would be able to provide adequate housing to all Government employees in metro cities,8221; Jethmalani said.