Addressing his first press conference after assuming charge as urban development minister, Ram Jethmalani said, "The original social purposes of the Act, which was in practise for the last 21 years, have failed and it has become an instrument for widespread corruption hampering the housing activity."

The provisions of the Act have not only been restricting the supply of land in urban areas but have also led to unnecessary harassment of land-holders, he said. Jethmalani said the government was also considering to treat the housing industry at par with the infrastructure industry and extend all the benefits available to the latter. Existing benefits under section 80 (1) (a) of the Income Tax Act giving a five-year tax holiday to infrastructure development may be extended to thehousing sector, which will attract private builders to take up low-cost housing, he said.

The minister said the housing industry has a great multiplier effect and this would be the best way to kickstart the economy. The ministry has also suggested concession in the customs duty for import of equipment used in the construction activities, he said and stressed that without latest technology the goal of providing shelter to two million people every year would remain a dream.

He said the government was considering permitting housing finance companies get concessions for raising resources for housing for vulnerable sections. This concession would allow resources to be raised at a low cost from the market to enable the finance companies to fund affordable housing for the economically weaker sections.

He said a budgetary support of Rs 1,000 crore would be required to implement his ministry's plan to provide quarters at the earliest to all government employees, who sometimes have to wait for 25 years foraccommodation.

Regarding the approval of building laws, Jethmalani noted that at present getting approval for civic bodies for the building plans was an extremely cumbersome procedure. To make things simpler, it was necessary to take away discretionary powers of the sanctioning authority. It was also necessary to take away the dictatorial powers of junior engineers, planners and the field staff who amassed huge wealth due to the misuse of such powers.