REPORT ON TREND AND PROGRESS OF HOUSING IN INDIA - JUNE, 2001

GOVERNMENT HOUSING INITIATIVES

The National Housing and Habitat Policy of 1998 envisaged the role of the Government as that of a facilitator and enabler, engaged in providing a level playing field to all market players through various fiscal, legislative and infrastructure incentives. However, as the housing shortage in the country reached an alarming level over the years and the market dynamics resulted in exclusion of a majority of the population from satisfactory housing especially in the economically and socially deprived segment, the Government of India had to assume a more proactive role in forming and operating various housing schemes particularly aimed at benefiting the poor and the underprivileged all over the country. In a country like India with a significant proportion of the total population living at the mere subsistence level, core issues like housing could not be left totally to the market forces as it might contradict the principle of social justice and economic egalitarianism. As the urban centers are gradually becoming over crowded putting considerable strain on limited resources, a proper decentralized approach in the housing programmes is also needed. The Government, therefore, had to intervene effectively to ensure large scale availability of housing covering a wide range of people across the country. Towards this end, the Government of India started operating several housing and housing support programmes all over the country through the Ministry of Urban Development and Poverty Alleviation and the Ministry of Rural Development.

· Urban Housing

One of the main characteristics of advancement of human civilization is the incident of growing urbanization. Over the years, the emergence of city-centric development process compelled millions of rural Indians to leave their domestic abode and come to the cities aspiring for a better standard of living. While the urban centres flourished to provide its inhabitants maximum possible comfort in terms of education, employment opportunity, comfort, safety and security, paradoxically they also frequently became the breeding grounds for poverty, crime and violence, pollution and congestion. The Government has therefore endeavoured to mitigate the predicament of the city dwellers to the extent possible through a number of housing support schemes which are specifically devised to address the ordeal of the needy and the deprived class.

Night Shelter/Sanitation facility for urban footpath dwellers

This is a partly subsidized central scheme with a subsidy element of 20% with the rest coming from the implementing agencies or through HUDCO loan. This scheme seeks to provide night shelter and sanitation facilities to footpath dwellers at a cost of Rs.5, 000 per beneficiary. The scheme is being implemented through HUDCO and it has now been implanted in all the cities, which are facing the acute problem of footpath-dwelling. During 2000-01 HUDCO sanctioned loan amounting to Rs. 41.99 crore with Government subsidy of Rs. 40.10 crore pertaining to a total number of 104 schemes to provide 18,217 beds, 25,383 pay & use toilet seats, 1,874 baths and 1,882 urinals.

Housing Scheme for Economically Weaker Section (EWS)

Under the 20 Point Programme of the Ministry of Urban Development & Poverty Alleviation, the captioned scheme was launched with a view to provide housing to the economically weaker section of the urban population. Under this programme direct public sector investment is supplemented by the HUDCO loans upto the extent of 15 % of its resources. National Housing Bank also provides refinance assistance to State, Co-operative and other organizations involved in EWS housing. For the 8th Five Year Plan, the income ceiling for EWS household under the scheme was raised to Rs.1,250 per month. For the schemes financed by HUDCO, income limit is currently upto Rs.2,500 per month and loan ceiling is Rs.40,000 for construction of EWS houses in urban areas, Rs.20,000 for addition and repairs and Rs.15,000 for improvement of shelter less service under population scheme. During the year 2000-01, about 2.39 lakhs dwelling units were constructed against the annual target of 1.96 lakhs dwelling units. The performance of the Scheme against the target allocated during the last five years is given below:

Yearly performance under EWS Housing Scheme

Year Target Achievement
1996-97 1,16,950 92,000
1997-98 1,68,075 81,592
1998-99 1,18,000 1,17,000
1999-00 69,000 1,02,000
2000-01 1,96,000 2,39,000
Source : Ministry of Urban Development & Poverty Alleviation

Housing Scheme for Low Income Group (LIG)

This scheme does not have any subsidy element in it and it is basically a “Loan” scheme being executed by the State Governments through Housing Boards and Housing Departments. The gap between the budget provisions for the scheme and actual implementation cost is supplemented by the institutional finance. For the 8th Five Year Plan the income eligibility for LIG household under the scheme was raised to Rs.1,251-2,650 per month. Monthly income limit for HUDCO sponsored Schemes is over Rs.2,500 and up to Rs.5,500 per month and loan component for this category of houses is Rs. 1,25,000/- for construction and Rs. 62,500/- for additions and repairs. During the year 2000-01, around 17,000 dwelling units have been constructed against the annual target of 27,000. The State Government/UT Administrations were advised to step up their effort to achieve the yearly targets. The performance of the Scheme against the target allocated during the last five years is given below:

Yearly performances under LIG Housing Scheme

Year Target Achievement
1996-97 62,000 26,000
1997-98 37,541 16,967
1998-99 57,828 41,244
1999-00 44,000 27,000
2000-01 27,000 17,000
Source: Ministry of Urban Development & Poverty Alleviation

Environmental Improvement of Urban Slums [EIUS]

The scheme envisages provision of seven basic amenities viz., water supply, sewerage, open drains with normal outflow avoiding accumulation of stagnant waste water, storm water drains, community baths & latrines, widening and paving of pathways, street lighting and other community facilities to the slum dwellers in order to improve their living conditions rather than massive slum clearance and relocation. This erstwhile centrally sponsored scheme became a state programme in 1974. During 2000-01, 60.88 lakh slum dwellers have been benefited through this scheme against the annual target of 50.97 lakh slum dwellers. The performance of the Scheme against the target allocated during the last five years is given below:

Yearly performance under EIUS Scheme

Year Target Achievement
1996-97 15,70,532 20,10,000
1997-98 11,89,898 8,84,822
1998-99 43,30,000 33,44,000
1999-00 47,05,000 55,73,000
2000-01 50,97,000 60,88,000
Source: Ministry of Urban Development & Poverty Alleviation

· Rural Housing

Even after 50 years of independence the majority of our population lives in villages. The all-round socio-economic transformation of Rural India is a must for the nation to reach the zenith of its potential and secure the position that it is capable of attaining among the world community. Government of India therefore, accords a high priority to rural development and is accordingly implementing a number of programmes aimed at sustainable holistic development of the rural areas. Housing has been identified as one of the five major elements of social and economic infrastructure, critical to the quality of life in rural areas, along-with health, education, drinking water and roads. In recognition of the importance of shelter as one of the basic requirements for leading a secure and dignified life, the Ministry of Rural Development is implementing a number of schemes to facilitate provision of quality shelter for all. The rural housing and housing support schemes, which are currently in operation, are discussed below.

Indira Awas Yojana (IAY)

The Government of India is implementing Indira Awas Yojana since the year 1985-86 with an objective of providing dwelling units free of cost to the members of Scheduled Castes, Scheduled Tribes and freed bonded labourers living below the poverty line in rural areas. From the year 1993-94, the scope of the scheme has been extended to cover non-scheduled caste and non-scheduled tribe rural poor, subject to the condition that the benefits to non SCs/STs shall not be more than 40 percent of IAY allocation. Benefits of the scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action. 3% of the houses are reserved for the below poverty line (BPL) disabled persons living in rural areas. So far around 68 lakh houses have been constructed under IAY with an approximate expenditure of Rs.11, 324 crore. The achievements under the IAY during the last 5 years are shown below:

Physical & Financial Achievements under Indira Awas Yojana

Year No. of Houses Built Expenditure (Rs. Crore)
1996-97 8,06,290 1385.92
1997-98 7,70,936 1591.48
1998-99 8,35,770 1803.88
1999-00 9,29,679 1907.63
2000-01 11,70,926 2185.81
(Source: Ministry of Rural Development)

The ceiling on construction assistance under the Indira Awaas Yojana currently is Rs. 20,000 per unit for plain areas, and Rs. 22,000 for hilly/difficult areas. The Gram Sabha is empowered to select the beneficiaries under the scheme. In order to achieve the dual objective of women empowerment and housing shortage alleviation, it is stipulated that the allotment of dwelling units should be in the name of the female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife.

Credit-cum-Subsidy Scheme for Rural Housing

The Credit-cum-Subsidy Scheme for Rural Housing was launched with effect from April 1, 1999. The targeted segment of the Scheme is rural families having annual income upto Rs. 32,000. While subsidy is restricted to Rs. 10,000, the maximum loan amount that can be availed of is Rs. 40,000. The subsidy portion is shared by the Centre and the State in the ratio of 75:25. The loan portion is disbursed by the commercial banks/ regional rural banks, housing finance institutions etc. During the financial year 2000-01, a provision of Rs. 150 crore was kept under this scheme for the construction of 1.09 lakh houses, in 23 states alongwith an allocation of Rs. 50.00 crore from the states. During the year, 45,346 houses were constructed and 17,104 houses were under construction as at the end of the year. A total release of Rs. 35.98 crore was made during the year out of which Rs. 26.99 crore came from the Central Government and the rest Rs. 8.99 crore was contributed by the states.

Innovative Stream for Rural Housing and Habitat Development

With a view to encouraging innovative, cost effective and environment friendly techniques in the building/housing sectors in rural areas, the Innovative Stream for Rural Housing and Habitat Development was launched with effect from April 1, 1999. Under this scheme it is proposed to provide financial assistance for efforts initiated on a project basis by organisations such as HUDCO/Building Material Technology Promotion Council (BMTPC)/Central Building Research Institute (CBRI)/NGOs etc.
During 1999-2000, an amount of Rs. 2.53 crore was released in the states of Himachal Pradesh and Tamil Nadu. For the financial year 2000-01, Rs. 10 crore has been earmarked for the scheme out of which Rs.3.95 crore was released.

Setting up of Rural Building Centres

The objectives of the establishment of the Rural Building Centres are (a) technology transfer and information dissemination, (b) skill upgradation through training and (c) production of cost effective and environment friendly materials/components. Two Building Centres in each State were proposed to be set up during the financial year 1999-2000 on pilot basis. One centre was to be set up by a governmental institution and the other by an NGO. For setting up of a Building Centre, a one-time grant of Rs. 15 lakh was provided. IN 1999-2000, 9 project proposals for setting up of these Centres were approved and funds to the extent of Rs.54 lakhs were released. During 2000-01, the limit of these Building Centres per state was increased to 4 and 22 such proposals were approved and Rs.1.32 crore was released. A total allocation of Rs.3.00 crore was made under the scheme for the year 2000-01.

Samagra Awaas Yojana

This comprehensive housing scheme was launched in 1999-2000 with a view to ensure integrated provision of shelter, sanitation and drinking water. During the first phase of its implementation it was decided to take up the Scheme on pilot basis in one block each of 25 districts of 24 States and one Union Territory, which have been identified for implementing the participatory approach under the Accelerated Rural Water Supply Programme. The existing schemes of housing, drinking water and sanitation would follow the normal funding pattern. However, a special central assistance of Rs. 25 lakh would be provided for each block for undertaking overall habitat development and information, education and communication (IEC) work with 10 percent contribution coming from the people. So far an amount of Rs. 351.90 lakh was released for implementation of the Scheme in the States of Haryana, Himachal Pradesh, Karnataka, Kerala, West Bengal, Rajasthan, Madhya Pradesh, Gujarat, Tripura, Punjab, Assam and Tamil Nadu.

New Initiative: Pradhan Mantri Gramodaya Yojana (Gramin Awaas)

This Scheme was launched in 2000-01 as a part of comprehensive Pradhan Mantri Gramodaya Yojana (PMGY) to achieve the objective of sustainable human development at the village level. The PMGY envisages allocation of additional central assistance to the states / UTs for providing / improving the outlay of Basic Minimum Services including “Rural Shelter” in the rural areas. During 2000-01, Rs.375 crore was made available for implementing the “Rural Shelter” component of the comprehensive PMGY Scheme. The total amount released was Rs.185 crore to all State Governments on ad-hoc basis.

· Other Initiatives

National Agenda for Governance - 2 Million Housing Programme (NAG-2MHP)

The National Agenda for Governance envisages construction of two million houses additionally every year out of which 1.3 million dwelling units are proposed to be constructed in the rural areas and 0.7 million dwelling units in urban areas. Targets have been allocated among various institutions/agencies engaged in the field of housing/housing finance in this endeavour. The performance of these primary lending institutions in implementing the housing schemes is reviewed by the Government of India periodically, at various levels. In the above context, target for HFCs (excluding HUDCO) and Scheduled Commercial Banks is 1.5 lakh dwelling units per annum. NHB is assigned the task of monitoring the performance of these institutions and collect regular information regarding the progress of the Scheme.

The performance of public sector banks and the housing finance companies (excluding HUDCO) during the years 1999-2000 and 2000-01 is furnished below:

Performance under NAG-2MHP
(Amount in Rs. crore)
1999-2000 2000-2001
Units Amount Units Amount
Public Sector Banks 128080 5603.04 225205 5202.79
HFCs* 182424 4382.93 224370 5586.35
TOTAL 310504 9985.97 449575 10789.14
* excluding HUDCO

Out of the 7 lakh dwelling units targeted in the urban areas under the Scheme, HUDCO is expected to meet more than 55% of the target, i.e. around 4 lakh dwelling units. HUDCO had reportedly sanctioned 4,70,881 dwelling units in urban areas with financial sanction of Rs.587.78 crore out of which 493.15 crore was released during the year 2000-01.