Published On: Sat, Jan 2nd, 2010

Ministry of Housing and Urban Poverty Alleviation, 2009 Review

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Year End Review

A. POLICY

1. Follow up on National Urban Housing and Habitat Policy (NUHHP), 2007:

1.1 The Policy along with tabulated statement indicating the various actionable points under the National Urban Housing and Habitat Policy: 2007 have been widely circulated among the various Central Ministries, State Governments, UT Administrations, business chambers, associations of real estate developers and other stake holders.

1.2 The Policy seeks that the Central Government will encourage and support the States to prepare a State Urban Housing and Habitat Policy and also a State Urban Housing & Habitat Action Plan. This may include passing of specific Acts by the States/UTs (with legislature) for achieving the housing policy objectives through legal & regulatory reforms, fiscal concessions, financial sector reforms and innovations in the area of resource mobilization for housing and related infrastructure development at the State/UT level.

1.3 In follow-up of this and its own objectives of tackling the housing shortage, the Ministry has taken the initiative to organise a Conference of all State Ministers of Housing, Local Self Government and Urban Development on the 20th January, 2009 with a view to seeking the cooperation of the States.

1.4 It was highlighted to the participating States/UTs that housing construction presently provides housing for the EWS through JNNURM and State Government schemes; and for the HIG though builders. There is actually a dearth of housing for the LIG and MIG in what may be called affordable housing. Between the JNNURM effort and state sector schemes in some states, it is estimated that about two million houses may be constructed for the economically weaker sections of the populace by the end of the 11th Plan. Given the housing shortage in the country, much greater effort and a much larger programme for housing construction is required.

1.5 The States were convinced of the double benefit the social housing programme carries. It significantly improves the quality of life of the slum dwellers and the poor; and side-by-side provides an impetus to the economy by its tremendous multiplier effect.

1.6 The State Governments were requested to supplement the efforts of Union Government in creation of additional housing stock by increasing supply of serviced land and new houses by direct intervention through State Housing Boards, Development Authorities, Cooperative Sector etc. and also providing one time incentive in the form of relaxation of Floor Area Ratio (FAR) /Floor Space Index (FSI) norms through appropriate spatial (regulatory) incentives.

2. Sub-Mission Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) under Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

2.1.1 In order to address infrastructure shortage and basic amenities needs of the urban poor living is slums in the urban areas, the Government launched Jawaharlal Nehru National Urban Renewal Mission (JNNURM) with effect from 3rd December, 2005. The Mission comprises two Sub-Missions – Urban Infrastructure and Governance (UIG) and Basic Services to the Urban Poor (BSUP). These Sub-Missions are for select 65 cities (2 cities namely Porbandar and Tirupati have been added recently). For cities/towns other than these 65 identified cities, two schemes, namely, Integrated Housing & Slum Development Programme (IHSDP) and Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) have also been launched on 3rd December 2005.

2.1.2 Ministry of Housing & Urban Poverty Alleviation is the nodal Ministry for Basic Services to the Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP), whereas the Ministry of Urban Development is the nodal Ministry for the Sub-Mission Urban Infrastructure & Governance and UIDSSMT.

2.2 Highlights of the Mission (BSUP & IHSDP) – Summary of Progress and Technical Support:

2.2.1 Under BSUP & IHSDP More than 1.4 million houses sanctioned (14,59,272). 1304 projects with outlay of more than Rs 33, 860 crores approved with the Central share of Rs. 18,499 crores committed (102% of 7-year allocation for 2005-12). ACA of Rs 7213 crores released. All States and 63 Mission Cities covered under BSUP. All State and UTs except small states of Goa, Sikkim, and Lakshadweep covered under IHSDP so far. About 1.74 lakh houses completed and 4.36 lakh houses in progress.

2.2.2 Financial support for setting up of Programme Management Units (PMUs) in 23 States/UTs has been approved. States to monitor BSUP, IHSDP & other urban poverty alleviation schemes. Detailed guidelines have been issued.

2.2.3 Financial Support for setting up of 101 Project Implementation Units (PIUs) has also been approved at the Cities/ULBs levels to monitor BSUP, IHSDP & other urban poverty alleviation schemes. Detailed guidelines have been issued.

2.2.4 A framework for Third Party Inspection and Monitoring established and agencies for -Third Party Inspection and Monitoring empanelled by Mission Directorate. TPIMs for 9 States namely Andhra Pradesh, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Tamilnadu, Uttar Pradesh & West Bengal have been approved. Other States are also coming forward. Detailed guidelines have been issued.

2.3 Progress on 3 Pro-Poor Key Reforms

• Internal earmarking within local body budgets for Basic Services to the Urban Poor
48cities have undertaken implementation of this reform

• Earmarking of at least 20-25% of developed land in all housing projects (both public and private agencies) for EWS/LIG category

17 States (43 Cities) have issued the policy directives to reserve developed land in public and/or private housing projects

• Implementation of 7- Point Charter: Provision of 7 Basic Entitlements/Services

•This reform is to be implemented in a staggered manner over the Mission Period in convergence with the programmes of other Ministries as this is also an outcome of the Mission.

2.4 Some Recent Initiatives:

(i) Planning Commission has enhanced the allocation by Rs. 5043 crore for BSUP (Rs. 2682 crore) and IHSDP (Rs. 2361 crore) and Ceiling Cost of a dwelling unit provided under the IHSDP was revised with the approval of the Cabinet from Rs. 80,000/ to Rs. 1,00,000 w.e.f. 01-04-2008.

(ii) New scheme of “Affordable Housing in Partnership

(iii) The Government has also launched new scheme of Affordable Housing in Partnership with an outlay of Rs. 5,000 crores for construction of one million houses for EWS/LIG/MIG with at least 25% for EWS category. The scheme aims at partnership between various agencies/ Government/ parastatals/ Urban Local Bodies/ developers– for realizing the goal of affordable housing for all.

Detailed Guidelines have been issued in this regard. Ministry proposes to modify the guidelines in consultation with Planning Commission and Department of Expenditure.

3. Formulation of Rajiv Awas Yojana

3.1 Government has announced a new scheme called Rajiv Awas Yojana (RAY) for the slum dwellers and the urban poor. This scheme aims at providing support to States that are willing to provide property rights to sum dwellers. The Government’s effort through the implementation of RAY would be to encourage the States to adopt a pace that will create a Slum free India at the earliest. The process of consultation before seeking approval on the parameters of the Scheme is in progress with the circulation of Draft Guidelines of the Scheme to States/UTs/Central Ministries etc. seeking their suggestions/ comments.

4. Interest Subsidy Scheme of Housing For the Urban Poor (ISHUP)

4.1 The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) has been launched w.e.f. 26/12/2008 with a view to enable access of urban poor to the long term institutional finance. The guidelines of the scheme were drawn up in February 2009 and circulated.

4.2 The Scheme seeks to provide interest subsidy to Economically Weaker Section (EWS) and Low Income Group (LIG) beneficiaries on availing loans from the Banks /Housing Finance Companies (HFCs) to enhance affordability of these income segments. Under this scheme, an interest subsidy of 5 percent per annum will be given upfront on loans upto Rs. 1,00,000/- taken from Banks / Housing Finance Companies (HFCs) during 11th Five Year Plan. The Loan repayment Period would be 15-20 years. The Scheme is positively inclined towards EWS households and out of 3.10 lakh dwelling units envisaged under the scheme, 2.70 lakh dwelling units are targeted for EWS housing.

4.3 In order to disseminate the details of Scheme and clarify doubts, this Ministry has held two consultations with Housing Secretaries of States/UTs and representatives of Public Sector Banks (PSBs) on 4th and 22nd May 2009. Banks/HFIs which have to act as the Primary Lending Institutions (PLIs) have responded well to the scheme and so far 20 Banks and 8 HFIs have signed Memorandum of Agreement (MOA) with the two Central Nodal Agencies (CNAs), namely National Housing Bank (NHB) & Housing & Urban Development Corporation Ltd. (HUDCO) who are to act as financial intermediaries for release of subsidy to PLIs under the Scheme. This has further been followed up by visits to different states and meetings with the State Secretaries, Municipal Commissioners, Senior level bank officers etc. and during last three months Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa, Chhattisgarh, Tamil Nadu, Jammu & Kashmir, Haryana and Punjab have been covered. A meeting with the select states and the MOA signing Primary Lending Agencies (PLIs) was held on 14.12.2009.

5. Street Vendors Policy and Model Bill

5.1 Ministry of Housing & Urban Poverty Alleviation has recently comprehensively revised the National Policy on Urban Street Vendors (2004), taking into account the views of States/UTs and other stake holders. The revised National Policy on Urban Street Vendors, 2009 aims at fostering a congenial environment for the urban street vendors to carry out their activities without harassment from any quarter and provides mechanism of regulation of such activities to avoid congestion on sidewalks and to ensure free flow of traffic on roads. It aims at ensuring that urban street vendors find due recognition at national, state and local levels for their contribution and is conceived as part of the national initiative for alleviation of poverty in cities and towns. The revised Policy underscores the need for a legislative framework to enable street vendors to pursue an honest living without harassment from any quarter. Accordingly, a Model Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009 has also been drafted. The revised Policy and Model Bill have already been forwarded by the Ministry of Housing & Urban Poverty Alleviation to all States/UTs.

B. SCHEME FOR URBAN POVERTY ALLEVIATION

Please refer to Press Information Bureau website for details

C. SCHEME FOR SANITATION

7. Integrated Low Cost Sanitation (ILCS) Scheme

7.1 Integrated Low Cost Sanitation (ILCS) Scheme, a centrally sponsored scheme, envisages conversion of individual dry latrine into pour flush latrine thereby liberating manual scavengers from the age old, obnoxious practice of manually carrying night soil.

7.2 The guidelines of the ILCS Scheme have been suitably revised with the approval of the Cabinet in its meeting held on 17.01.2008 and the revised guidelines have been circulated to all States/UTs and concerned Departments.

7.3 The project cost for converting around 6 lakh dry latrines is Rs. 715.48 crores out of which central subsidy comes to around Rs.545.00 crores during the XIth Plan. The revised ILCS Scheme envisages conversion of all existing dry latrines within a period of three years (2007-2010). With the implementation of the Revised ILCS Scheme, it is expected that the system of manual scavengers will be eradicated from the country.

7.4 There is a budget provision of Rs.60.00 crores for the current financial year under the Scheme.

D. OTHERS

8. Draft Model Real Estate (Regulation of Development) Act 200_____.

8.1 In order to promote planned and healthy real estate development of colonies and apartments with a view to protecting consumer interest on the one hand and to facilitate smooth and speedy urban construction on the other; Ministry of Housing & Urban Poverty Alleviation drafted a draft Model Real Estate (Regulation of Development) Act 200_____.

8.2 The draft Model Act has been divided in seven Chapters and includes six schedules.

8.3 The draft bill seeks to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain a website containing all project details, with a view to protecting, on the one hand the public interest in relation to the conduct and integrity of promoters and other persons engaged in the development of such colonies and to facilitating on the other the smooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties and for matters connected therewith or incidental thereto.

8.4 The bill provides for compulsory registration with the Regulatory Authority for development of land into a Colony of plots or construction of a building or conversion of any existing building or part thereof into apartments, for the purpose of marketing all or some of the apartments, except when the area of land proposed to be developed into a colony does not exceed one thousand square meters or the number of apartments proposed to be constructed does not exceed four.

8.5 The bill also provides that no promoter shall issue or publish an advertisement or prospectus, offering for sale any plot, building or apartment, or inviting persons who intend to take such plots, buildings or apartments to make advances or deposits without registering with the Regulatory Authority and without first filing a copy of the advertisement or prospectus in the office of the Regulatory Authority.

9. High Level Task Force on “Affordable Housing for All”

9.1 In line with the underlying goal of National Urban Housing & Habitat Policy, 2007 to provide ‘Affordable Housing for All’ and in order to arrive at more scientific definition for affordability, the Ministry set up a Task Force on 15.1.2008 under the Chairmanship of Mr. Deepak Parekh, Chairman – HDFC Ltd. to study and make recommendations as to affordability and the strategy to provide affordable housing in pursuance of the Policy.

9.2 Deepak Parekh, Chairman of the Task Force has presented the report on 29.12.2008. The Task Force has strongly recommended the need for ‘Affordable Housing’ and mentioned that delay in addressing the affordable housing problem would seriously affect India’s economic growth and poverty reduction strategies.

9.3 The Ministry had set up a Committee headed by Secretary, Ministry of Housing & Urban Poverty Alleviation and with other members as Ashok Jha, retired Finance Secretary to Govt. of India, Prof. Amitabh Kundu, School of Social Sciences, JNU; Prof. OP Mathur, Principal Consultant, NIPFP – to examine the recommendations made by the Task Force and take a view in the matter.

9.4 The recommendations found acceptable by the Ministry have been divided into two categories:

(i) where action lies within the Ministry’s allocated business; and

(ii) those which, in the view of the Ministry, either because of inter-ministerial involvement or wider implication, need to be brought to the notice of Cabinet for information or for approval.

9.5 As part of recommendations accepted by the Ministry it has been decided to set up two Committees for:

a. working out the parameters for estimating the number of households under three categories of ‘affordability’ – Economically Weaker Section (EWS), Low Income Group (LIG) and Lower Middle Income Group (LMIG); and

b. promotion of housing micro finance company which may be permitted to take household savings as deposits.

9.6 Further, a draft cabinet note has been circulated to the concerned Ministries/Departments on the recommendations involving pan-Government issues and comments received are being examined by the Ministry.

10. Sensitisation Through Celebration Of World Habitat Day

10.1 The Ministry of Housing & Urban Poverty Alleviation organized World Habitat Day 2009 on 5th October, 2009. The focus was on “Inclusive Planning” and the shifts, technological innovations and financial instaurations to achieve the same. Kumari Selja, Minister of Housing & Urban Poverty Alleviation and Minister of Tourism, inaugurated the Event & delivered the World Habitat Day Address on the occasion.

E. ACHIEVEMENTS OF THE ATTACHED OFFICE, CPSUs AND AUTONOMOUS BODIES UNDER THIS MINISTRY

11 Attached Office

11.1 National Buildings Organisation:

11.1.1 The National Buildings Organisation (NBO), an attached Office of the Ministry of Housing and Urban Poverty Alleviation (HUPA) has been functioning as an apex organization in the country for collection, tabulation and dissemination of statistical information on housing and building construction activities. NBO has been assigned the work relating to development of “Housing Start-up Index (HSUI) – internationally considered to be one of the leading economic indicators,” for measuring the change in the level of activities in housing sector and to identify the growth/ recessionary tendencies in this and related sectors of the economy. It captures the movement of the economy and reflects the phase of the business cycle-boom or recession.

11.1.2 The NBO has implemented a web based online system BRIKS (Building Related Information and Knowledge System) to overcome constrains of data accessibility, data completeness and timeliness of data. The NBO is also designated as the nodal agency for coordination of appraisal, sanction, monitoring and review of projects under Basic Services to the Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP) component of Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

12. Central Public Sector Undertaking

12.1 Hindustan Prefab Limited (HPL):

• HPL (A Govt. of India Enterprise) is functioning under the administrative control of the Ministry of Housing & Urban Poverty Alleviation since 1955. Its main areas of activities Manufacturing, Construction Projects, Maintenance works and Real Estate works. The company has ISO: 9001:2000 Certification. The company shut down the factory operations in Sept 2004 due to unviable cost of production. The company diversified from a manufacturing company to a service oriented company. Currently the company is offering project management services.
• With the approval of Government of India ‘Conversion of HPL’s outstanding Government of India loan and interest thereon as on 31.03.08 amounting to Rs. 128crores have been converted into equity, thereby increasing the authorized capital of HPL from the existing Rs. 10 crores to Rs. 138 crores”.
• During the year itself, the company has achieved a highest ever turnover of Rs.150.32Crore showing a growth of 428% and has also recorded an operating profit of Rs.9.38Crore (PBDIT) and a net profit of Rs.7.75 Crore (PAT) and this has been a landmark achievement after a long gap of 16 years in the history of HPL;

13. Autonomous Bodies

13.1 Building Materials and Technology Promotion Council (BMTPC)

• BMTPC was established in 1990 as an apex level autonomous organisation and registered under the Societies Registration Act, 1860 under the aegis of the Ministry of Housing & Urban Poverty Alleviation with the prime objective of bridging gap between the laboratory development and large scale field application of cost effective, environment friendly and energy-efficient innovative building materials and disaster resistant construction technologies.

• The Council has initiated Construction of Demonstration Houses in Uttar Pradesh,Haryana, Chhattisgarh, Madhya Pradesh. A Demonstration Community Building in Haryana; Model Informal Markets in Jharkhand and Andhra Pradesh and establishment of a Technology Demonstration-cum-Production Centre in Haryana has also been initiated. During the year, the last Demonstration Housing Project under VAMBAY at Bilaspur (Chattisgarh) – 100 DUs was also completed.

• It Developed Technology for Floor/Wall Tiles and Pavers from Granite Slurry, Technology for Utilization of Marble Slurry in Self Compacting Concrete; Flattened Bamboo Composites and Laminated Bamboo Lumber Products; Housing System using cellular light weight concrete; Technology for cost effective value added thermal insulation Tiles for ceiling purposes; Building Components from Sponge Iron Waste;

• Technology package using confined masonry; Specifications and Code of Practice on MCR tiles, Ferrocement roofing channels and Filler slabs.

13.2 National Cooperative Housing Federation of India:

• NCHF is the apex organization of entire cooperative housing movement in the country. It is engaged in promoting, developing and coordinating the activities of housing cooperatives since its inception in the year 1969. At the grass root level there are now about 92000 primary housing cooperatives with a membership of over65 lakhs.

• These cooperatives are supported by 26 Apex Cooperative Housing Federations at state level, which are affiliated to NCHF. These federations have raised loans amounting to Rs.10159 crores from funding institutions like LIC, NHB, HUDCO, cooperative banks, etc. and in turn disbursed Rs.10709 crores to their primaries as well as individual members for the construction of 23.84 lakh dwelling units in various parts of the country.

• The LIC has allocated a sum of Rs.125 crore as loans to Apex Cooperative Housing Federations for the year 2009-10 and raised the individual loan limit from Rs.7.00lakh to Rs.10.00 per member

13.3 Central Government Employees Welfare Housing Organisation (CGEWHO)

• CGEWHO was formed in 1990 by the Govt. of India under the aegis of the Ministry of Housing & Urban Poverty Alleviation, as a ‘Welfare’ organization, for construction of dwelling units for the Central Government Employees, on “No Profit-No Loss” basis and registered as a Society, in Delhi, under the Societies Registration Act of 1860, on 17th July,1990.

• As on date, it has completed 23 projects in 14 different cities comprising 10872 dwelling units.

• During the year, Lucknow (Ph-I) Housing Scheme comprising of 130 dwelling units was handed over to the Apartment Owners Association. Pune (Ph-II) with 148 dwelling units was handed over in Feb/Mar’ 09.

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  1. Ranjit singh says:

    We run NGO in mumbai for poor , pls provide us the details of urban poverty alleviation scheme so that we can help n guide people

  2. vijay jadhav says:

    WE WANT A REAL INFORMATION ABOUT THIS PROJECT AND WE R MEMBER OF SAHARA CITY HOMES

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