Providing affordable and suitable housing for the bulk of the population should be given utmost importance, asserts Hiranandani group MD Niranjan Hiranandani

Mumbai: The Maharashtra state government recently announced a Rs 2,000-billion plan to convert Mumbai into a world-class city. There is nothing wrong with this ambitious and timely plan. But the reality is that even if the funds were to be made available there are precious few construction and development organisations in India capable of implementing such a gigantic project and even fewer with a proven track record in designing, developing and maintaining world-class townships.

Here is where the relevance of the Hiranandani group of Mumbai comes to the fore. Set up in the early 1980s by Niranjan L Hiranandani and Surendra L Hiranandani, this exceptional organisation has already built one of the largest integrated townships in India, spread over 300 acres, at Powai in Mumbai.

Their father is the world-renowned ENT surgeon, Dr L H Hiranandani, winner of the Padma Bhushan award and the SAARC Doctor of the Millennium award, among many others. At the age of 86 he is still active and works vigorously every day.

The Hiranandani group has also diversified into retail, entertainment, hospitality, infotech, education, horticulture and healthcare. The group's construction activities were launched in 1981. Recently the group announced its entry into the healthcare segment with the Dr L H Hiranandani Hospital, at Powai in Mumbai, which will be a multispecialty hospital, the only one of its kind in the city and is expected to be commissioned in December 2003.

Their first project in Versova was completed between 1981 and 1986. Their mega - projects commenced in Powai in 1987 and in Thane in 1996. Both Hiranandani Gardens, Powai, and Hiranandani Estate, Thane, are 300-acre township projects with a truly-modern infrastructure of concrete roads, regular water supply, effective sewage, electricity and high-tech communication networks.

These townships are acknowledged for their emphasis on humanising the urban environment and striking an attractive balance between greenery and construction. Most builders in India hand over completed projects to cooperatives societies formed by buyers and/or tenants, but the Hiranandani group always goes the extra mile. Maintenance extends to cleaning of streets and drains, beautification, garbage disposal and organic waste composting, rodent and mosquito control and the all-important security services.

The result is an experience which is truly rare in India - impeccably maintained infrastructure and buildings designed to last a lifetime with minimal maintenance costs; neat and well-groomed landscaping; clean, freshly swept, garbage-free streets; restaurants, food-stalls, huge shopping malls and boutique shops, entertainment and sports facilities to suit all pockets and tastes; excellent educational and medical facilities; door-to-door support services; ample parking space; public and private transportation services at your doorstep; round-the-clock security and not a single hawker or beggar in sight.

Of course, all this comes at a price. Hiranandani Gardens at Powai is one of the most (relatively) expensive properties in the eastern boroughs but it is also the most sought after. Compared to other expensive residential areas in Mumbai it is still very reasonably priced and unparalleled in the amenities it offers. Niranjan Hiranandani, the group's suave, outspoken managing director, recently spoke to domain-b about his views on the future of the construction industry in India. Excerpts from the interview:

What is your view on the current overall housing scenario in India?
I find the situation to be very disappointing. As a nation, whom have we succeeded in providing acceptable housing for? Only the few who can afford to pay, not the lakhs and lakhs of citizens who need housing built to certain minimum acceptable standards. Whether it is China or Hong Kong or London, those at the bottom of the income pyramid can still be assured of being able to afford a liveable dwelling, which does not cost more than 25 per cent of their income, whether it's on rent or purchased through a mortgage.

In India, we have millions of persons who earn at least Rs 5,000 per month but they cannot afford a proper house. Even a police constable cannot afford a proper house of his own. The National Housing and Habitat Policy 1998 [NHHP 1998] has spelt out how affordable housing for all can be provided. We know what is to be done. The Urban Land Ceiling Act [ULC] must be scrapped. Stamp duties must be reduced. Licenses of all kinds must be made cheaper. Zoning laws must be changed. The full spectrum of incomes must be catered to as it is done all over the world, where affordable shelters are provided for all, regardless of their income.

Do you feel the fault lies with the government?
Of course. During our earlier periods of drought and severe shortage of food grains didn't the government successfully introduce a rationing system under which grants of food grains under PL480 from the US were distributed throughout the country? This was followed by the 'green revolution' whereby we now have a huge surplus of food grains.

As a nation our government has also successfully tackled the problems of public transport and education to an appreciable extent, but not housing. Mumbai is the richest city in India but we cannot provide acceptable housing to over 50 per cent of our population, which somehow survives under despicable conditions in slums. This is the major issue.

So this means you have succeeded by building luxurious homes only for the rich?
The success of individual builders is not important in this context. It is much more important to provide affordable and suitable shelter for the bulk of the population of any city. How can Mumbai ever hope to become a world-class city if this basic problem is not tackled urgently?

The government is not even planning for mass housing on a viable basis. It has succeeded to some extent in matching supply with demand in the areas of food grains, railways, four- and two-wheelers, telecom, mobile phones, education, health, shipping and aviation, so why not in housing? In all the other sectors we are at least trying to attain world standards but in housing all we can do is replicate more and more slums.

This is quite shameful and shocking. What is the root cause?
Land is supposedly the scarce asset. Actually it's not. We can always build upwards, but it is tightly controlled by the government and vested interests through an ancient, deeply rooted 'license raj' system.

How can we break free of this control?
How we can do that is also well documented. But there is a complete lack of political will to do so and the masses have been brainwashed into thinking that good housing is not affordable.

In the recent past, for issues concerning widespread public interest the only method that seems to have worked is the filing of public interest litigations in the high courts or the Supreme Court.
I do not think it will work in this case because the government asserts that all its related policies are in public interest. This is gross misinformation but they are getting away with it.

Does that mean that it's impossible to change things for the better and that we will remain famous globally for hosting and expanding the biggest slums in the world?
Nothing is impossible. If the government cannot do it, it can be achieved through private initiatives. As long as we can create a formula that can be replicated with a multiplier effect, it will work. Good work that can be replicated is great work. An excellent example is the amazingly successful city-wide clean-up campaign that the municipal commissioner of Thane, T S Chandrashekhar, implemented, which is still being replicated throughout India.

Why cannot the builder fraternity play a more active role?
I am certainly ready to as long as it is not like hitting my head against a wall. Fortunately we, as builders, are now treated as industrialists. When I first started out 25 years ago we were treated on par with gangsters like Haji Mastan and Yusuf Patel. But our industry has recorded phenomenal growth rates comparable with software, IT, television and the media.

There is great romance ahead for my industry. We can remove all the slums in Mumbai if we are allowed to… if the eco-terrorists who are blocking our country's growth with restrictive policies are reformed or removed. As far as I am concerned, at least I have shown the way with my townships. I feel I have done my duty to the best of my ability. The rest is up to others and, of course, finally everything is in the hands of the almighty.