India needs to focus on affordable housing says Ascon Infra Chairman and MD

You have had a long and difficult struggle to reach this stage, please tell us your inspirational story.

I lost my father at the age of 10, when I was studying in Standard V in a government run Hindi medium school. From then on, it was a struggle. I was the youngest of three brothers and a sister. I completed my graduation in Commerce from City College. I paid  my college and exam fees by giving tuitions and doing small jobs.

After graduation, the drive to become an entrepreneur made me forego two plum jobs , one in the Police and the other as a Hindi teacher in a Government school (even with poverty staring at me). It was my entrepreneurial zeal that first landed me a partnership in a small electronic goods business. After a sour experience, I came in contact with a person who had a disputed land in Beliaghata and thus started my joint venture in building homes. After successful completion, I once again did a joint venture with the same gentleman at Tala Park, which too saw success and from then on I have scaled newer heights with each successful project.

Belonging to a middle class family, I always set out dreaming of a mission for Bengal. I always felt that one of the biggest problems of society was accommodation for the Lower Income Group and the base section of the Middle Income Group.

I wanted to do something for these people but had no proper infrastructure, resources and finance to start developing houses for these needy people. But I did not lose my patience and started the business with whatever I had with me. My journey of struggle began two decades back in the highly competitive real estate business and my strengths were absolute honesty and ability to put in hours of hard work, remain focused and steady determination. From a humble beginning where I had to literally struggle for two square meals a day, my dedication has turned into a reality, a 100 per cent complaint free company in Ascon Infrastructure India Ltd.

What made you take up affordable housing?

According to the 2011 census, out of 24.67 crore households in India, 32 per cent are urban households. The share of households living in owned houses is 69% in urban areas. According to estimates, around 600 million people are expected to make urban India their home by 2031, a whopping 59 per cent growth over 2011. The current housing deficit in India stands at 19 million units, which, in the absence of any meaningful intervention, is slated to double to 38 million units by 2030. 95% of this deficit is around the EWS (Economically Weaker Sections) and LIG (Low Income Group) segments, which technically puts the figure at a staggering 18 million units in this category (approximately).

While this number is huge, there is also a substantial chunk of upper end of LIG band and lower to middle end of MIG band, which we can say comprises ‘the emerging middle class’, who are also deprived of decent living conditions. The deficit in this category is approximately 4 lakh units, which, if not addressed, would further aggravate the proliferation of unplanned and unsustainable urbanisation. Statistics show that more than 80% of this category is staying in congested homes.

Affordable housing project is the future of Indian realty sector. The increase in price of almost everything has forced a customer to redesign its expenses matching with his income. Now the days have gone where an MIG customer can afford a house. Most of the people believe in nuclear family and they are not willing to spend huge money for their living. Only affordable housing is the answer to their requirement. Decent, affordable housing is fundamental to the health and well-being of people and to the smooth functioning of the economy. Against the backdrop of impending large scale urbanization in India over the next few decades, it is important to identify, evaluate the needs of, and address the challenges faced by the largest chunk of urban housing consumers with the most pressing needs – the affordable housing customer.

How do you think affordable housing will impact social development in India?

Affordable housing will have a huge impact on society. It will provide home for Lower MIG & LIG people in Tier I & Tier II cities. This will indirectly increase the GDP of the state. Developers will have the opportunity to generate employment from neighbourhood residents when starting a new project. The lack of available housing options, combined with limited income and minimal access to home finance for low income borrowers, means that millions of Indian households currently live in cramped, poorly constructed houses/slum areas/shanties. They lack access to a clean and healthy environment, with even basic amenities such as sanitation, clean water, sewage, waste management and electricity often absent. Thus, ‘Affordable Housing’ is an idea whose time has come, and sooner rather than later, planned sustainable urbanisation will have to be by default and not by choice.

How did you achieve a 100 per cent complaint free company status when these days almost all small and big companies have several complaints against them from customers?

In modern day real estate industry, Ascon Infrastructure India Ltd occupies a unique position with a 100 per cent complaint free track record and adoption of RERA guidelines even without the Act’s formal implementation.

One of the key pointers towards the success and satisfied customer base is that over 25 per cent of the first time home buyers with Ascon have bought their second property with them again.

For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers.

For many, buying or selling a home is not a common experience. Probably just once or twice in a lifetime.

Consumers tend to rely on Real Estate Agents to give them advice. It is hard for anyone who is not involved in the real estate industry to understand what goes on 'behind the scenes‘. Consumers fall victims to unscrupulous deals if they are not careful. Common problems faced by buyers are non disclosure of property prices when property is advertised and property advertised as VEP  Pressure Selling:  is a common tactic used by some agents.  They create hype by saying that a foreign buyer has offered a higher price and if the buyer don’t make a decision quickly the property will be sold to them.  Unlicensed real estate agents advertising properties and that poses a lot more risks to vulnerable consumers. We did not require a RERA to implement the quality control, customer service and maintaining strictest adherence to all laid down rules and regulations, the concept and spirit of RERA was already implemented by ASCON long before the authorities mulled about the idea

What is the way forward from here for Ascon Infrastructure India Ltd?

Having established in the real estate as a key player in the East, Ascon Infrastructure India Ltd, is in overdrive for expansion with several projects in the pipeline.

One of the major expansion plans of Ascon Infrastructure India Ltd is setting up of a hosiery unit near Barasat with an investment of Rs.100 crores and employment opportunity for over 2,000 people of the area.

Towards meeting the same Ascon Infrastructure India Ltd is coming up with enlisting in National Stock exchange and Bombay Stock Exchange by 2020-2021.

Another venture is being planned in Dubai - setting up of a Software company for surveillance systems; affordable housing and warehouses are being planned in Dankuni and Barasat. A sister concern, Ascon Granite, has been set up in Bengaluru,exporting to Dubai, Bangladesh and other countries.