Affordable Housing Scheme by Government

By Accommodation Times News Services

Scheme for Affordable Houses
The Technical Group constituted by Ministry of Housing & Urban Poverty Alleviation to assess the urban housing shortage in the country, had estimated that at the beginning of 11th Five Year Plan (2007-12), the urban housing shortage in the country was 24.71 million. The Technical Group had further estimated that total requirement of house in the urban areas during the 11th Five Year Plan was 26.53 million. Further, the Technical Group has estimated the urban housing shortage as 18.78 million at the beginning of the 12th Plan Period i.e. 2012. This was stated by Shri Ajay Maken, Union Minister of Housing & Urban Poverty Alleviation (HUPA), in the RajyaSabha today, in a written reply to a question by Shri Y. S. Chowdary.

The Minister further stated that Land’ and ‘Colonisation’ are State subjects, therefore it is the primary responsibility of State Governments to provide affordable houses to all citizens. However, in order to complement and supplement the iniatives of State Governments, the Ministry of Housing & Urban Poverty Alleviation has implemented the following schemes/programmes during the last Five Year Plan i.e. 11th Five Year Plan:

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched by Ministry of Housing & Urban Poverty Alleviation in 2005 to assist States/Union Territories (UTs) in taking up housing and infrastructural facilities for the urban poor in 65 select cities in the country under the Basic Services to the Urban Poor (BSUP)Programme. For other Cities/Towns, the Integrated Housing and Slum Development Programme (IHSDP) waslaunched. The duration of Mission was upto 31.3.2012 which has been extended by 2 years upto the end of financial year 2013-14 for completion of projects sanctioned upto March 2012 and implementation of 3 pro-poor reforms under BSUP and IHSDP components of JNNURM.

Components of JNNURM No. of Projects sanctioned Project Cost Dwelling Units Sanctioned Dwelling Units completed
BSUP 527 29786.22 10,05,917 4,64,601
IHSDP 1,083 11936.91 5,63,807 1,99,881
Total 1,610 41723.13 15,69,724 6,64,482

No year-wise targets were fixed under BSUP & IHSDP – components of JNNURM. However, a target of construction of 1.5 million houses was set under JNNURM and the States have been advised to achieve the completion of houses within the Mission period as early as possible.

Achievement under JNNURM is summarized as under:

The scheme of Rajiv Awas Yojana (RAY) was launched by Ministry of Housing & Urban Poverty Alleviation with an aim to provide 50% Central assistance (90% for North Eastern and Special Category States including the cost of land acquisition, if required) for creation of affordable housing stock including rental and transit housing. The scheme of RAY is reform oriented and demand driven scheme and progress under the scheme depends upon the pace set by States. Therefore, targets were not set under RAY. However, achievement made under RAY is as under:

Rs. 99.98 crores have been released to 195 cities for undertaking preparatory activities under Slum Free City Planning Scheme – preparatory phase of RAY.

As on date 49 pilot projects have been approved in various States under RAY.

Affordable Housing in Partnership Scheme which aims at encouraging the public private partnerships for the creation of affordable housing stock is dovetailed with RAY. Under this scheme Central Assistance will be limited to (a) Rs. 50,000 per rental unit or Dwelling Unit for all Dwelling Units taking Economically Weaker Sections (EWS), Low Income Groups (LIG) and Medium Income Groups (MIG) units together which are proposed in the project, and (b) 25% of the cost of all civic services (external and internal) proposed in the project.

This scheme extends to all cities covered under RAY and rental housing units as well as dormitories for new migrants are also permissible under the scheme.

A total of 11 projects of 2 States viz., Karnataka & Rajasthan have been sanctioned under the Affordable Housing in Partnership Scheme. The 1st Instalment of Rs. 3.08 crore has been released during financial years 2011-12 and 2012-13.

The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) was launched by the Ministry of Housing & Urban Poverty Alleviation in 2008 with an aim to provide interest subsidy on housing loans to the Economically Weaker Sections (EWS) and Low Income Groups (LIG) for the purposes of construction/acquisition of houses and offer 5% subsidy in interest payment for loans upto Rs. 1 lakh. The scheme of ISHUP was also a demand driven scheme.

As on date, a sum of Rs. 16.00 crores has been released as NPV of interest subsidy covering about 13,485 beneficiaries in the States of Andhra Pradesh, Karnataka, Rajasthan, Chhattisgarh, Tamil Nadu, Assam, Madhya Pradesh, Uttar Pradesh, Maharashtra and Kerala.

The Minister further stated that the above schemes were demand driven and progress was dependent upon the pace set by either the States or other stakeholders. However, shortfalls of the schemes have been identified and the Ministry of Housing & Urban Poverty Alleviation has taken suitable corrective measures in this regard, the Minister added.

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