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‘Urban Renewal Schemes Key To India’s Transformation’

Suman K Jha Dec 22, 2017

Q: Were you surprised when you were chosen to head the Housing and Urban Affairs Ministry? You are, after all, a distinguished diplomat?
Well, I wouldn’t use the word surprise. All I can say is that it is a great honour to be inducted into the council of ministers. But if I had to think as to what kind of ministry I would get, all I can say is that urban affairs is an issue very much part of sustainable development goals (SDGs), which the UN has negotiated in terms of 2030 agenda. And, in fact, urban local bodies cover 15 out of those 17 SDGs. So, these are issues which I am familiar with. I am definitely excited and positive in terms of challenges here.

Q: How has this 100-day journey been for you?
Very eventful. We got a lot done. A lot of work was already done. You needed to continue the implementation process. We have also taken several new initiatives and are in the process of taking more.

I am fully immersed into the issues and challenges, which this ministry poses and I am now dealing with the details. There is never a dull moment. There is a lot going on in the Swachh Bharat Mission and a tremendous amount of activities in the Pradhan Mantri Awas Yojna (PMAY). We have increased the carpet area for MIG1 and MIG2. We took the decision to the cabinet and got approval for that. We are in an advanced stage of implementing of the Smart Cities programme.

India is undergoing a basic and fundamental transformation. Swachh Bharat, housing for all (PMAY), and the Smart Cities Mission are the Prime Minister’s three flagship programmes around which transformations under my ministry will take place. These three are interlinked and integrated. In India, 600 million people will live in urban spaces by 2030. As I keep saying, we were de-industrialised as a result of the first industrial revolution, which took place between 1750 and 1850.
When we are on the cusp of the Fourth Industrial Revolution, which is all about urban services, we have to face those challenges whether you like it or not. But I think it will be a win-win for India. If you look at the history of other countries such as China, housing lifted the economic growth. Housing has also got a fundamental transformative effect.

A modern house will have a kitchen, a toilet and also a title deed in the name of the lady of the house, which, in turn, provides dignity for the girl child. But the deficit in terms of number of houses now is 10 million. The West calls us the reluctant urbaniser because they are comparing us to other countries like Mexico, which have a much higher urbanisation rate. But we are a larger country in terms of population base. The urban population is going to increase. If agriculture contributes only 16 per cent to the GDP, obviously people living in rural areas will come to urban areas in search of jobs.

Q: Why are we not talking of 500 smart cities (instead of just 100) when there are 4,000 cites?
If you are living in an ideal world where there are no constraint on resources, you should do that. $30 billion have been set aside and more will come from PPP, which is another Rs 37,000 crore ($5.7 billion).

I think the demonstrative effect of a 100 (smart cities) and ease of living with those 100 will lead to more demand as it is. Yes, there is a lot of demand from the other cities. I would look at it in terms of blocks. Right now, we are a $2.5 trillion economy with a per capita income of $2,000. If we grow at 6-8 per cent, before too long, we will have a per capita income of $5,000. And if you have a 1.5 billion population with $5,000 per capita income, you are already a $5-6 trillion economy. So that is how you do quantum jump.

There could be a little bit of struggle because a lot of people are going to have difficulty in terms of mindset or lifestyle changes. But we don’t have any choice. Seventy years after Independence, we still have manual scavenging or open defecation. We need to move on. Once we are over with 100, we will look at other cities.

Q: Have the periodic appraisals helped expedite the missions and projects at hand?
The missions have an inbuilt momentum of their own. My monthly reviews are basically designed to demonstrate that the figures and progress which are coming in are on track. We now have an app where the figures of all the states and missions are updated on a daily basis. We are also doing state reviews. We are also figuring out what are the innovations we can introduce in order to have a qualitative thrust improvement.

Q: Are you confident of meeting the target of 30 lakh households, which have been approved for the period of 2015-21?
A 100 per cent. When it was announced, it was confined only to economically weaker sections and the lower income group. The PM added MIG in December 2016. And now we have added the carpet area. The target is actually housing for all by 2022. The scheme is 2020 but it will be extended.

Q: The homebuyers are still not happy, even after RERA, and other measures…
They should be thrilled because we didn’t have a regulator for 70 years. RERA is a godsend to the homebuyers. We are providing support to the homebuyers as they are also getting protection. Apart from RERA, there is GST, demonetisation, etc. But more than that, there is infra status to affordable housing, Income Tax 81B and fiscal benefits. I think the sector has been cleaned. This is extremely important because the real estate sector used to be known for parallel economy.

Q: What can be done to revive the housing sector?
The housing sector will definitely be revived. The buzz in the market is that the future belongs to affordable housing. Look at the numbers — I am talking about the deficit of 10 million houses in the current situation as per the 2011 study. But, you know, 70 per cent of the India of 2030 is still to be built. People will demand housing. The kind of innovative schemes that the government is providing such as credit-linked subsidy schemes, etc., will make the sector attractive.

Q: Why do you think that even the BJP-ruled States are dilly-dallying on the RERA?
I would not say that. There are two things. We are coming to judgement very hastily. RERA was not there for 70 years. We have got RERA but it was languishing for eight years. It was effected in May and it has only been seven months. I have been writing to the state governments to set up their RERA mechanisms and appellate tribunals. Some states came under the influence of builders and tried to tweak the provisions on affordable housing and on ongoing projects. The Court is very clear and I am very clear.

Q: Many people feel that the Smart Cities movement is slow...
It is not correct. It is just that people don’t know enough about it. From the number of projects that are underway and tendering, it will be very clear that you are looking at huge amounts of money. When physical manifestations of schemes become clear, then people stop asking questions like this. A total investment of Rs 1,91,155 crore has been approved. It is just a start of the process. Smartness doesn’t mean just Wi-Fi hotspots, but also integrated transport, cycle tracks, gardens, buildings, etc.

Q: Now, there are typical urban issues like woman’s safety and pollution (in cities, and smart cities), which needs urgent attention that cannot be addressed by your ministry alone.
No, my ministry has to contribute to it. Let me put aside women safety for a moment. Housing, surveillance in Smart Cities, ensuring that there is public transport, surveillance, CCTV, etc., in turn, also address women safety issues.

Regarding pollution, there can be many sources such as coal-fired industries. Put that aside. There are things, which concerns my ministry such as decongestion of Delhi. There was a decongestion report prepared in 2016. I am waiting for the CM to act on it.

Then, there is the approval required for Metro Phase 4. I am waiting for the CM to send me the proposal. Then, there is Regional Rapid Transit Systems (RRTS) projects, and the Delhi-Ghaziabad-Delhi Metro. Look, all of us are involved in this. I am disappointed at a few things. You know this is not rocket science. There is a problem but we know how to solve this problem. But we need the cooperation of all the stakeholders.