Critical Issues & Challenges Improper selection of land pa | CSE MAINS BOOSTER
Critical Issues & Challenges
Improper selection of land parcels for AH projects: High prices and lack of availability of land within city limits is discouraging developer driven projects. Also, lack of employment opportunities in the vicinity discourages people from staying in these units.
Lengthy statutory clearance & approval processes: It takes over 2 years to obtain all the 20-30 required approvals through multiple authorities which increase the gestation period and project cost.
Shortcomings in development norms, planning* & project design: such as Incongruence between the affordable housing policies of Central and State governments creating hurdles in availing the benefits, insufficient action in providing social and external connectivity infrastructure by the concerned authority etc.
Challenges in Beneficiary selection: Lack of a beneficiary database to facilitate AH developers to identify their target customers.
Capacity constraints such as Inadequate capacity of implementing agencies and lack of mainstreaming of low cost technologies to achieve economies of scale.
Lack of participation of large organised real estate players due to low profit margins and high sensitivities to changes in input cost, project delays etc.
High cost of construction finance due to lack of suitable credit enhancing financial products for developers as well as lack of a suitable mechanism or funds for maintenance.
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