HOUSING CONDITIONS IN INDIA AND THE LATEST HOUSING SCHEMES

Housing is regarded as an engine of economic growth and can give a big

push to the
economy through its strong backward and forward linkages with about 250
ancillary industries. As per an IIM Ahmedabad Study (July 2000), housing
investment has inter-industry linkages and investment in
housing/construction sector has strong multiplier effects on the construction
sector would generate additional income in the economy as a whole, which
would be almost 5 times as high as the direct income generated within the
construction sector itself.
Further, investment in housing has an employer multiplier effect on the
sector induces an overall employment generation in the economy by an
extent that is eight times the direct employment generated in the
construction sector itself.

The 2011 Census of India reveals that the urban population of the country
stood at 377 million or 31.16 percent of the total population. This is
estimated to have increased to 437 million by 2021, which is about 36
percent of the total population. It is projected that the urban population
would grow to about 553 million in 2026. The
level of urbanization is expected to reach 50 percent mark in the next 3-4
decades.
Urbanisation and economic growth are closely interlinked, as more than 60
percent of
Gross Domestic Product of the country is contributed by Urban India. As India
moves
ahead to a double-digit growth, obviously a key policy issue has emerged as
to how
to rejuvenate and strengthen the Urban Areas.

Considering the need to intensify efforts and accord a new deal to slum-
dwellers, the former President of India, in her address to both the Houses of
Parliament on 4th June 2009 declared the resolve of the Government to
usher in a Slum-free Urban India through the launching of Rajiv Awas Yojana
(RAY). In pursuance of the Governments vision of creating a Slum-free India,
RAY has been launched on 02.06.2011. The Phase I of Rajiv Awas Yojana
which is for a period of two years from the date of approval of the scheme is
the preparatory phase and is currently under implementation.
The Phase II of RAY shall be there for the remaining period of the 12th Five
Year Plan. Under the Scheme, Central Assistance will be extended to States
that are willing to assign property rights to slum dwellers and undertake
reservation of land/ Floor Area Ratio (FAR)/dwelling units for Economically
Weaker Sections (EWS)/Low Income Groups
(LIG), earmark 25 per cent of municipal budget for basic services to the
urban poor/
slum-dwellers and bring in legislative amendments and policy changes to
redress land
and affordable housing shortages for the urban poor.

The lack of availability of land at affordable prices in cities is explained in

terms of lack of legal space or tenure security in the existing slums;
absence of
implementation of reservation of land for EWS/LIG housing and informal
sector
activities in Master Plans for cities, spiraling urban land prices that have
soared on
the adoption of land as a resource raising policy by states and municipalities.
Another
key constraint to affordable housing to the urban poor is the is critically
important
for the poor if they are not to be squeezed out of the formal housing market.
Another
constraint is the availability of rental housing for new migrants from rural
areas and
small towns seeking jobs in cities. Rajiv Awas Yojana is expected to adopt a
holistic
approach with a package of measures to address the issues of land for
housing and
facilitate the construction of affordable houses for the urban poor. This
scheme
proposes to guarantee the lending agencies for loans given to EWS/LIG
persons upto
Rs. 5 Lakh without any third party guarantee or collateral security. 31st
October,
2012.

Housing and housing amenities are major indicators to gauge human well-
being of a
country. Any person in the house, the basic civic amenities available to the
household etc. will depict the overall socio-economic progress of the society.
Statistical information
relating to housing condition in quantitative terms is essential.
Out of the 244.64 million houses occupied for residence and residence-cum-
other
uses in India, 130.12 million habitable condition houses and dilapidated
habitable
condition houses were 13.05 million (5 percent). Among the 166.16 million
Rural
Census houses occupied for residence and residence-cum-other use as good
habitable condition houses were 76.36 million (46 percent); livable
habitable
condition were 78.97 million (48 percent); while the houses in dilapidated
condition were 10.82 million (6 percent). Among the 78.48 million Urban
census
houses occupied for residential and residence-cum-other use, good
habitable
condition houses were 53.76 million (68 percent); livable habitable
conditions were
22.47 million (29 per cent); while the houses in dilapidated condition were
2.26
million (3 percent).
As per Census 2011, 115.74 million (47 percent) households at all India level
had a
latrine facility within the premises. Out of these, the share of Rural
households was
51.57 million (31 percent of total rural households) and that of Urban
households was
64.16 million (81 percent of total urban households).
Urban housing shortage in the country was calculated on the basis of the
Census 2011
data on the number of households, available housing stock, acceptable
housing stock,
overcrowding/congestion in the existing dwelling units and obsolescence
factor by a
Technical Group(TG-12) constituted by the Ministry of Housing & Urban
Poverty
Alleviation.

The initiatives of the Government of India in recent years, including those in

the 11th
Five Year Plan to address the issues of slums and urban poverty affordable
housing,
basic amenities and lack of skill and employment opportunities for the urban
poor are
summarized as follows:
Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

The broad objectives of Jawaharlal Nehru National Urban Renewal Mission

(JNNURM) are: Planned urban development;
Integrated development of urban infrastructural services;
Effective linkages between asset creation and asset management;
Ensuring adequate investment of funds in cities;
Scaling up delivery of civic amenities and provision of utilities with
emphasis on
universal access to the urban poor;
Taking up urban renewal programme, i.e., redevelopment of inner (old)
cities area to reduce congestion;
Provision of basic services to the urban poor including security of
tenure at affordable prices, where possible in-situ, improved housing,
water supply, sanitation, education, health and social security.

Swarna Jayanti Shahari Rozgar Yojana

Urban Self Employment Programme (USEP) - Targeted at individuals

among the urban poor for the setting up of micro-enterprises;
Urban Women Self-help Programme (UWSP) - Targeted at urban poor
women selfhelp groups for setting up of group-enterprises and
providing them assistance through a revolving fund for thrift &
credit/self-help group activities;
Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
- Targeted at urban poor for imparting quality skills training to the
urban poor so as to enhance their employability for better
salaried/wage employment offered by the market or self-employment;
Urban Wage Employment Programme (UWEP) - Targeted at assisting
the urban poor by utilizing their labour for the construction of socially
and economically useful public assets, in towns having population less
than 5 lakhs as per 1991 census; and
Urban Community Development Network (UCDN) - Targeted at
assisting the urban poor in organizing themselves into self-managed
community structures so as to gain collective strength to address the
issues of poverty facing them and participate in the effective
implementation of urban poverty alleviation programmes.

National Urban Housing & Habitat Policy 2007

 Target at Affordable Urban Housing for All with special emphasis on the
urban poor, especially Scheduled Castes/Scheduled Tribes/Backward
Classes/ Minorities and on empowerment of Women;
Lay emphasis on inclusive urban planning and increasing supply of
land for affordable housing, removing legal impediments, using spatial
incentives like additional Floor Area Ratio (FAR), Transferable
Development Rights of renewable sources of energy and adoption of
participatory approach;
Encouraging Integrated Townships and Special Economic Zones that
are inclusive;
Reserving 10-15% of land in every new public/private housing projects
or 20-25% Floor Area Ratio (FAR) whichever is greater for EWS/LIG
housing through appropriate spatial incentives;
Public-Private-Partnerships (PPP): The private sector to undertake land
assembly within the purview of Master Plans with focus on inclusion.
Action Plans for urban Slum-dwellers and special package for
Cooperative Housing, Labour Housing and Employees Housing to be
prepared.
According primacy to the provision of shelter to urban poor at their
present location or near their work place with be on encouraging the
use of proven cost-effective technology and building materials,
developing mass rapid transit system at subregional level, and creating
green cover in and habitats cities for balanced ecological development.