Urban Infra: Rs 10 Lakh Cr Investment in 4 Yrs

New Delhi, Aug 29 (PTI) India's urban infrastructure sector has witnessed a massive investment of Rs 30 lakh crore in the last decade and is estimated to receive another Rs 10 lakh crore funding over the next four years, a top government official said on Friday.

Addressing the 17th annual convention of NAREDCO, Union Housing and Urban Affairs Secretary Srinivas Katikithala noted that India is rapidly urbanising and in the next 20 years, more than 50 per cent of the population would live in urban areas.

He described this rapid urbanisation as both a challenge and an opportunity.

The secretary exhorted the real estate industry to develop their projects where infrastructure is being laid, and also asked them to expand their work horizons beyond housing.

"In the last one decade under the inspiring leadership of Prime Minister Narendra Modi, urban infrastructure and the urban sector have received enormous attention, enormous investment," he said.

"In the last one decade, we have seen an investment of Rs 30 lakh crore," he said, adding that the investment was only Rs 1.78 lakh crore during the 2004-2014 period.

Katikithala said the Ministry of Housing and Urban Affairs is the fourth-largest capital spending ministry in the central government.

Therefore, he said, "It becomes our responsibility, collectively in this room, to participate in this economic activity and also contribute to it."

The secretary pointed out that the real estate sector's contribution to this investment of Rs 30 lakh crore would be very less.

"When this infrastructure expansion is happening, are we aligning our projects along this infrastructure expansion?" Katikithala questioned builders.

He asked the real estate industry to align its development activities along existing infrastructure.

"Please do not wait for infrastructure to chase us. Let us chase the spaces (location) where infrastructure is already going (being built)," Katikithala said. He mentioned that massive investments are being made in urban infrastructure, including roads, metro rail, railways, water supply and sewage.

"But what is happening is, there is a bit of a dissonance between where we are developing residential or commercial or whatever spaces and where this infrastructure is getting laid," Katikithala said.

The secretary asked builders to identify and look at opportunities where these infrastructures have been built.

"In the next four years...Rs 10 lakh crore are going to be spent in the urban areas," he said, adding that there are huge opportunities for participation and growth for the private sector. The secretary said the private sector should contribute to making urban areas more efficient. "It is no longer enough for urban local bodies to deliver services on their own; they must come together with the private sector and deliver high-quality urban services," Katikithala said.

Talking about the real estate regulatory law, RERA, the secretary asked the real estate sector to proactively support in better implementation of this legislation.

He said more projects should be registered under the RERA and also stressed proper training to brokers registered under this legislation.

The secretary informed that the Prime Minister has reviewed the implementation of the RERA law in the recent past in a meeting with all Chief Secretaries of the States.

"He told all of them to take up RERA as one of the important initiatives of the country," the secretary said.

The Prime Minister has also directed to create awareness about the benefits of this law among taxpayers, he said, adding that his ministry has already collaborated with the CBDT for this purpose.

The RERA law implementation has also been discussed recently in the Parliamentary Standing Committee, the secretary said.