National Housing Fund

By Murari Chaturvedi

Posted on 18 July 2000

The staggering dimensions of the housing shortage in the country, urban as well as rural an never be solved by devising ad-hoc solutions. Long term goals and strategies are needed to solve this eternal problem. The government fully understands that we need enormous funds to solve this hydra headed problems. In fact specialised financial institutions with dedicated funds for housing development is the need of the hour. In this country the government must create a National Housing Fund on top priority basis. Political will and planned strategies can definitely create the fund.The Government, through National Housing Bank, should create such an dedicated fund for the development of housing stock in the country. Even a fraction of amount from the turnover of big public sector organisations like LIC, ONGC and the likes can bring about a sea-change on front. Corporate India can and should also contribute to the corpus of the National Housing Fund. Millions upon millions of home seekers are fed up with slogans like, “shelter for all by the year so and so”, raised by political parties of all hues and colours. We can also adopt the Singapore model to create funds for housing by tapping provident funds and other such avenues. A tiny percentage from the various taxes the Government collects, can also be invested for creating the fund; which can fund the development of housing to different income groups, especially the low income and the middle classes, on reasonable terms for a variety of shelter options. The task force of the Planning Commission on shelter must take the lead in this matter and evolve a clear cut strategy in consultation with National Housing Bank and the Finance Ministry. The fund can also be enhanced by the Government sponsored Real Estate Mutual Funds. The housing front is most vital for national economy and human settlement. National Housing Policy have clearly admitted this fact and have stressed the need for all out efforts for the development of the housing stock in the country. Shelter concerns all and hence deserve orchestrated and dedicated efforts from the government through its various organisations. A centralised housing fund is acute to build the Nation.