Urban Planning: Centre’s Rs 15,000-Crore Incentives Will Boost Realty Sector, Say Industry Players – News18

With the central government last week announcing a financial incentive of Rs 15,000 crore for states and Union Territories (UTs) for proper planning and management of urban areas in the current financial year 2023-24, it will play a pivotal role in transforming urban development and providing a substantial boost to the realty sector in the country, according to experts.

The real estate experts said that one of the key provisions in the ‘Scheme for Special Assistance to States for Capital Investment’ is the promotion of hiring urban planners.

Anshuman Sharma, president of Navraj Group, said, “The Centre’s financial incentives for states and UTs mark a turning point in the Indian realty sector. With a renewed focus on sustainable urban planning, we anticipate a positive impact on the real estate landscape, paving the way for more organised and eco-friendly developments, which are the need of the hour.”

Stating that the lack of adequate urban planners is a significant issue in the current urban development landscape, the realty industry players said almost half of the states and most cities lack these essential professionals, with smaller cities disproportionately affected.

Sanjeev Arora, director of 360 Realtors, said, “We welcome the government’s move to encourage hiring urban planners. This investment in expert talent will undoubtedly lead to more thoughtful and efficient urban developments, benefitting both the environment and citizens while fulfilling sustainable residential and commercial development goals.”

He added that this will set the roadmap for more sustainable and holistic development, which is a pressing need of the present time.

Rajesh K Saraf, managing director of Axiom Landbase, said, “The focus of the financial incentives for states, among others, is also on hiring urban planners. It will boost the real estate sector and help shape cities into modern, sustainable, and well-planned urban hubs. We are excited about the positive changes these incentives will bring to the Indian urban landscape.”

According to the guidelines, cities with varying populations must adhere to specific criteria to achieve effective urban planning. For cities with a population exceeding 40 lakh, a minimum of five urban planners is required. In comparison, those with a population between 10 and 40 lakh must have at least three urban planners. Similarly, cities with a population between five and 10 lakh must have at least two urban planners, while the towns with population below 5 lakh must have at least one urban planner.

Shantanu Gambhir, MD and co-founder of RISE Infra, said, “The population-linked planning guidelines introduced by the Centre are a step in the right direction. This approach ensures that cities have the expertise to address their unique developmental challenges. We believe that aligning urban planning with specific demographics will enable cities to cater to their residents’ needs better, creating vibrant and inclusive communities.”

Stating that overcrowded infrastructures, insufficient public amenities, traffic congestion, and environmental degradation are some pressing issues arising from the lack of proper planning, Raheja Developers’ Nayan Raheja said, “These financial incentives will encourage states to take necessary steps to address these challenges and implement sustainable urban development practices. In the long run, it will boost the real sector in the country.”