You are on page 1of 22

Sites and services scheme

Rapid growth of urban areas in most developing countries in the last few decades has led to shortfall in
many sectors, primarily housing. The problem has been two-fold: on one hand, the majority of the people
moving to the urban areas have lacked the necessary asset and financial holdings in order to acquire a
"decent" house. On the other hand, the designated government agencies and bodies have not provided
sufficient housing units which are affordable for the poor majority in urban areas. The proliferation of
slums and squatter settlements has been a result of this scenario. But a growing understanding of the
dynamics involved in the development and expansion of squatter settlements has led to a number of
innovative housing schemes in various developing countries to solve the "dilemma" of housing.
Particularly with the intention of improving the environmental quality of squatter settlements and provide
it with the basic necessary infrastructure, one such innovative schemes which has received wide
acknowledgement and following has been "sites-and-services" schemes.

Sites-and-services schemes became the byword for solving the problem of squatter settlements.
Squatter settlements were and has always been considered illegal and in order to relocate and
rehabilitate the squatters (as a function of "slum clearance"), plots of land (or sites) with infrastructure
on it (or services) were provided, and the beneficiaries had to, in most of the projects, build their own
houses on such land. There are a wide variety of sites-and-services schemes, ranging from the
subdivided plot only to a serviced plot of land with a "core" house built on it.


The key components of a housing scheme are the plot of land, infrastructure (like roads, water supply,
drainage, electricity or a sanitary network), and the house itself. Various inputs that go into them include
finance, building materials/technology, and labour.

Thus, the sites-and-services approach advocated the role of government agencies only in the preparation
of land parcels or plots with certain basic infrastructure, which was to be sold or leased to the intended

The next step of actual house building was left to the beneficiaries themselves to use their own
resources, such as informal finance or family labour and various other types of community participation
modes to build their house. The beneficiaries could also build the house at their own phase, depending on
the availability of financial and other resources. This adopted the basic principle of the development of a
squatter settlement but without the "squatting" aspect.


Some of the variations attempted in sites-and-services projects include:

Utility wall: A "utility" wall is built on the plot which contains the connections for water, drainage,
sewerage and electricity. The beneficiaries had to build the house around this wall, and utilize the
connections from it. Some projects provided this utility wall in the form of a sanitary core consisting of a
bathroom/toilet, and/or a kitchen.

Latrine: Due to its critical waste disposal problem, many project provide a basic latrine (bathroom and/or
toilet) in each plot.

Roof frame/ shell house, core house: The roof is the costliest component of a house and requires skilled
labour to build. Therefore, some projects provide the roof structure on posts, and the beneficiaries have
to build the walls according to their requirements. Conversely, a plinth is sometimes built by the
implementing agency, which forms a base over which the beneficiaries can build their house. Other
variations to this are the shell house (which is an incomplete house consisting of a roof and two side
walls, but without front or rear walls) and a core house (consisting of one complete room).


With several assumptions and misconceptions regarding low-income families, sites-and-services projects
have been subject to many shortcomings in its conception, identification of beneficiaries, implementation
and cost recovery. Thus sites-and-services schemes have often been rendered unaffordable or
inaccessible for the lowest-income groups by bureaucratic procedures, institutional requirements and
political problems. Some of the constraints have been:

Location: With high land costs in urban areas, most sites-and-services schemes are location on the fringe
where such costs are not very high. This however causes two problems: one, the large distance between
the site and existing delivery networks, off-site and on-site provision of infrastructure is high and
construction can be delayed. Two, the extra distances that the beneficiaries have to travel (and the
consequent extra costs) to the employment centres would discourage many beneficiaries to take
advantage of such schemes.
Bureaucratic Procedures: Selection procedures, designed to ascertain that applicants meet eligibility
criteria, tend to be cumbersome, time-consuming and full of bureaucratic pitfalls, and provide
opportunities for corruption. Besides, for many low-income families, the eligibility criteria are impossible
to meet due to informal sector jobs or low/irregular incomes.

Delay in provision of Services: Due to a lack of coordination between the various implementation agencies
and a "spread" of responsibility of providing the infrastructure and services, there is considerable delay
in the final provision the services, even after the land has been allocated to the beneficiaries.

Standards: High standards of construction and building quality are set by the implementing agencies
making such schemes unaffordable to the target beneficiaries. Some sites-and-services schemes, for
example, prohibit income generating activities on residential plots, including rental of rooms: they,
thereby, limit the opportunities of residents to earn an (additional) income to pay for their plot and their

Cost Recovery: Most sites-and-services schemes are plagued by poor cost recovery. One reason is the
high costs that beneficiaries have to bear shortly after moving into the scheme. They have to pay for the
plot as well as construction of the house, while they might be facing loss of income due to the move to the
new scheme. Transport, water and electricity costs add to the burden which they might not have had
before. But some of the main reasons for poor recovery has been delay in provision of services,
inadequate collection methods, lack of sanctions for non-payment and absence of political will to enforce

Public, private sector housing

Public Sector

A public sector enterprise is an organisation which is

• Owned by public authorities including Central, State or Local authorities, to the extent of
50% or more;

• Is under the top managerial control of owning public authorities

• Is established for the achievement of a definite set of public purpose

• Is consequently placed under a system of public accountability

• Is engaged in an activity of business character


• Helps in rapid economic growth & industrialisation of the country & creation of necessary
infrastructure for economic development,

• To earn return on investment & thus generate resources for development,

• To promote redistribution of income and wealth,

• To create employment opportunities,

• To promote balanced regional development,

• To promote import substitution, save and earn foreign exchange for the economy

• Acts as a countervailing force and put up an effective competition to undertakings in private

sector and

• To gain control over the commanding heights of the economy.


Housing and Urban Development Corporation Ltd. (HUDCO)

The Housing and Urban Development Corporation Ltd.(HUDCO) was set up in 1970 as a fully owned
Government company to finance and undertake.

The objectives of HUDCO include

o providing long term finance for construction of houses for residential purposes or finance or undertake
housing and urban development programmes in the country;
o finance or undertake, wholly or partly, the setting up of the new or satellite towns;
o subscribe to the debentures and bonds to be issued by the State Housing (and/or Urban Development)
Boards, Improvement Trusts, Development Authorities etc. specifically for the purpose of financing
housing and urban development programmes;
o finance or undertake the setting up of industrial enterprises of building material;
o administer the moneys received, from time to time, from the Government of India and other sources as
grants or otherwise for the purposes of financing or undertaking housing and urban development
programmes in the country, and
o promote, establish, assist, collaborate and provide consultancy services for the projects of designing and
planning of works relating to Housing and Urban Development programmes in India and abroad.
o undertake business of Venture Capital Fund in Housing and Urban Development Sectors facilitating
Innovations in these sectors and invest in and/or subscribe to the units/shares etc. of Venture Capital
Funds promoted by Government/Government Agencies in the above areas.
o set up HUDCO's own Mutual Fund for the purpose o Housing and Urban Development programmes and/or
invest in, and/or subscribe to the units etc. of Mutual Funds, promoted by the Government/Government
Agencies for the above purpose.


HUDCO was established with an equity base of Rs. 2 crore. Over the years, the Government has expanded
the equity base. The present authorized capital base of HUDCO is Rs.2500 crore and paid up capital is
Rs.2001.90 crore. HUDCO has created reserves of Rs.5045.25 crore. The net worth of HUDCO is
Rs.7047.15 crore.

HUDCO has further been able to mobilize resources from institutional sources like LlC, GIC and Banking
sector; International Assistance (KfW, JBIC, ADB, USAID, etc.) and market borrowings through Debentures,
Taxable & Tax-free Bonds as well as through Public Deposits, taking the overall borrowings to
Rs.21304.75crore. With this, the cumulative resource base of HUDCO is Rs.28351.90 crore.

Based on the sustained outstanding performance and profitability of HUDCO, the Government of India has
conferred the status of Mini Ratna to HUDCO in 2004-05. The grant of Mini Ratna status provides for
larger autonomy for HUDCO with powers to invest in equities as well as to form SPVs, Joint Ventures and


Urban and rural housing, co operative housing, community toilets, slum up gradation , staff housing ,
repairs and renewal , private sector , land acquisition , building technology etc…
Under infrastructure facility it carries work on water supply, sewerage, drainage, solid waste
management, etc..

Private Sector

• A private sector enterprise is an organisation which is owned, managed & controlled by private
individuals or a group of individuals or both. It is also engaged in business activity but with the
motive of profit maximisation rather than public service like in case of public sector enterprise.


• To reduce political interference in the management of enterprise, leading to improved efficiency

& productivity,

• To provide adequate competition to the public sector,

• To generate cash in order to fund the ever-increasing expenses,

• To reduce the concentration of economic power in the country.

• EXAMPLE ( Tata Housing – enclosed as pdf)


Indira Awaas Yojana is a social welfare flagship programme, created by the Indian Government, to provide
housing for the rural poor in India.

The differentiation is made between rural poor and urban poor for a separate set of schemes operate for
the urban poor(like the Basic Services for Urban Poor).

This scheme was launched by Rajiv Gandhi,the Prime Minister of India at that time.

It is one of the major flagship programs of the Rural Development Ministry to construct houses for BPL
population in the villages.

Under the scheme, financial assistance worth Rs.70,000/- in plain areas and Rs.75,000/- in difficult
areas (high land area) is provided for construction of houses.

The houses are allotted in the name of the woman or jointly between husband and wife.
The construction of the houses is the sole responsibility of the beneficiary and engagement of
contractors is strictly prohibited.

Sanitary latrine and smokeless chullah are required to be constructed along with each IAY house for
which additional financial assistance is provided from Total Sanitation Campaign and Rajiv Gandhi
Grameen Vidyutikaran Yojana respectively.

This scheme, operating since 1985, provides subsidies and cash-assistance to people in villages to
construct their houses, themselves.


Started in 1985 as part of the Rural Landless Employment Guarantee Programme (RLEGP), Indira Awaas
Yojana (IAY) has been operating as an independent scheme since 1996.
From 1995–96 the scheme has been further extended to widows or next-of-kin of defence personnel
killed in action, ex-servicemen and retired members of the paramilitary forces who wish to live in rural
areas as long as they meet basic eligibility criteria.


The broad purpose of the scheme is to provide financial assistance to some of the weakest sections of
society for them to upgrade or construct a house of respectable quality for their personal living.
The vision of the government is to replace all temporary (kutchcha) houses from Indian villages by 2017.

Eligibility Criteria

Scheduled Castes/Scheduled Tribes, freed bonded labourers, minorities and non-SC/ST rural households
in the BPL category, widows and next-of-kin to defence personnel/paramilitary forces killed in action
(irrespective of their income criteria), ex-servicemen and retired members of paramilitary forces
residing in rural areas form the primary target group of eligible candidates for the IAY Scheme.

IAY is an allocation based, centrally sponsored scheme funded on a cost sharing basis between the
Central Government and the State Government in the 75%:25% ratio, except in case of North-eastern
states and Union Territories (UTs). For NE states the central government funds 90% and 100% for the
The funds are allocated to the states based on 75% weightage of rural housing shortage and 25%
weightage of poverty ratio. The housing shortage is as per the official published figures of Registrar
General of India based on the 2001 Census individual capacity

Current provisions
As per the Budget 2011, the total funds allocated for IAY have been set at ₹100 billion (US$1.6 billion) for
construction of houses for BPL families with special focus on the Left Wing Extremist (LWE) districts.


Since 1985, 25.2 million houses have been constructed under the scheme. Under the Bharat Nirman Phase
1 project, 6 million houses were targeted and 7.1 million actually constructed from 2005–06 to 2008–
09.[8] Additional, 12 million houses are planned to be constructed or renovated under the Bharat Nirman
Phase 2.[8]
According to the official 2001 figures, the total rural housing shortage is 14.825 million houses.[8] A
yearwise breakdown is given below for the last 5 years:[8]

S. No. Year Total

1 2005–2006 1,551,923

2 2006–2007 1,498,367

3 2007–2008 1,992,349
4 2008–2009 2,134,061

5 2009–2010 3,385,619

Total 10,562,319

Management Information System (MIS

A software called AWAAS Soft was launched in July 2010 to assist in improved administration of this

Equity in housing
The value of ownership built up in a home or property that represents the current market value of the
house less any remaining mortgage payments. This value is built up over time as the property owner pays
off the mortgage and the market value of the property appreciates.

Simply put Home Equity is Market Value minus Mortgage Balance. If I have lines of credit against my home,
that is also deducted from the Market Value of my home. If my home is worth Rs 40 lakhs and my
mortgage balance is Rs 30 lakhs I have equity of Rs 10 lakhs

Row houses
One of a series of houses, often of similar or identical design, situated side by side and joined by common
walls. A ouse having at least one side wall in common with a neighboring dwelling. It has front and back
yard through which the light and ventilation will be received. In some cases it will be received from roof.
There are divergent views on what constitutes “rural areas”, where rural “ends” and urban “begins”.
There is no universally accepted definition and it may be useful to adopt the approach of UN Habitat in
viewing urban and rural as a continuum of settlements and emphasize the linkages between urban areas
and rural areas]


 Rural areas are often referred to as those areas outside of the city or urban boundary or
periphery where populations are spatially dispersed.
 Agriculture is the main economic activity that provides job opportunities. In these areas
opportunities for socio-economic development are often perceived as limited, leading to the
migration of able bodied individuals to the “bright city lights” and leaving a residual of generally
vulnerable, under educated, aged and very young population.
 These households are often largely dependent on social grants and remittances from family
members working in the cities.
 Their income is constrained as the rural economy is not sufficiently vibrant to provide them with
jobs or self – employment opportunities.
 Women form the majority of the rural population and female- headed households are particularly
 Their cost of living is high because they spend relatively more on basic social services such as
food and water, shelter, energy, health and education, and transport and communications
 The poorest households also have low levels of literacy and education.


• Home ownership is the dominant form of tenure in rural India with more than 95 per cent
households owning their homes
 The percentage of rental tenure is 4.6 per cent. These are mainly the houses rented to farm
workers by landlords.


•Based on building materials used for construction of structure, houses have been classified as

•pucca (building materials used for construction are brick and mortar and other permanent materials),

•semi-pucca (building materials used for part of the construction of either the roof or the walls are mud
or thatch)

•kutcha (materials used for construction are mud and thatch).


The trend indicates that the share of pucca houses in total has increased from 18.5 percent in 1971 to 35.4
per cent in 2001.


•Precast Stone Masonry Block Walling Scheme•Solid Concrete Block Masonry Scheme•Concrete Block
Making Machine•Solid/ Hollow Concrete Blocks•Concrete Block- Shaker Machine•Rat Trap Bond
Masonry•An Improved Hand Molding for Building Bricks•Thin Precast RCC Lintels in Brick Walls•Non-
erodible Mud Plaster for Mud Walls•C Brick Technology•Stabilized Mud Blocks


•Precast R.C. Plank Flooring/Roofing Scheme•Precast Channels Units•Precast R.C. Coed Units•L-Pan
Roofing Schemes•Prefab Brick Panel System for Flooring/Roofing•Unreinforced Pyramidal Brick
Roofs•Precast Concrete Funicular Shells for Roofs and Floors•Precast R.C. Waffle Units for Floors and
Roofs•Micro Concrete Roofing Tiles•Country Roofing Tiles•Improved Method of Making Durable and Fire
Retardant thatch Roof


•Ferro-Cement Products and Applications•Ferro-Cement Door Shutters•Ferro-Cement Cupboards,

Trusses & Rafters•Ferro-Cement Water Tanks•Ferro-Cement Toilet Slab•Ferro-Cement Dual Pit Water
Seal Latrines


•Low Cost Sanitation•Concrete Skeleton System•Timber Skeleton System•Balli Skeleton
System•Pedestal Pile• Kedar Kuti•Gauri Kuti•Improved Smokeless Chullah•Waste Water Disposal System


• The government has formulated various initiatives targeted towards rural housing but a comprehensive
rural housing policy,• The Ministry of Rural Development has formulated an Action Plan for Rural Housing
that consists of the following programs: • 1. Provision for upgrading unserviceable kutcha houses under
the Indira Awas Yojana (IAY) in addition to the new construction. • 2. Credit cum subsidy scheme for rural
housing. • 3. Innovative scheme for rural housing and habitat development. • 4. Setting up of rural
building centers. • 5. Samagra Awas Yojana. • 6. Enhancement of equity contribution by the Ministry of
Rural Development to HUDCO. • 7. National Mission for Rural Housing and Habitat. • 8. Two Million Housing

Indira Awas Yojana (IAY)IAY is being implemented since 1985–6. The focus of this scheme is to provide
assistance to rural households who are economically classified as below poverty line or belong to
schedule caste/scheduled tribe or are freedbonded labourers .The scheme has also been extended to
families of ex-servicemen killed inaction. Three per cent of total houses are reserved for physically
andmentally challenged persons who are below poverty line. Since inception Rs 13,840 crore have been
spent under this scheme. A totalof 10.34 million units have been constructed/upgraded under this scheme
upto 2003–4 (NHB, 2004 and NHB, 2005).

Community participation

For any developmental process, involving the people is must which will be helpful in all the design
solutions. They are the one who is going to reside their and their Participation should be justified on the
basis of its contribution toward the objectives of housing and urban management.

Planning for engagement

A key task for public agencies and officials in planning community engagement is to assess which
engagement techniques are most appropriate in the particular circumstances.

Deciding on the level of engagement

Careful consideration needs to be given to determining and delivering an appropriate level of

engagement, deciding which stakeholders should be involved, the issue to be considered and the
objectives of engagement.

Choosing engagement techniques

When deciding which engagement method or technique to use in a particular situation or with a particular
group, it is important to consider a number of issues including:
• agency issues
• community issues and
• process issues.
Process issue

Information-sharing techniques

1. Advertising
2. Online information processes
3. Briefings
4. Education and awareness programs
5. Fact sheets
6. Newsletters
7. Media stories
8. News conferences
9. Displays
10. Newspaper inserts
11. Community fairs or events
12. Community meetings
13. Shop fronts
14. Informal club forums

Consultation techniques (few among 28 techniques)

 Discussion groups and workshops

 One-on-one interviews
 Open days
 Charrettes
A charrette or ‘inquiry by design’ workshop is an intensive workshop where stakeholders come together
to identify issues, deliberate about preferred outcomes and create plans for the future.
 Imagine
Imagine is a new approach to community participation based on ‘appreciative inquiry’. Appreciative
inquiry can be used to discover, understand and foster innovations in communities by gathering positive
stories and images and constructing positive interactions.
 Photovoice
Photovoice involves providing cameras (generally disposable) to people in the community to identify,
record, represent, and enhance their community through photography.
 Policy Action Teams
Policy Action Teams are responsible for an intensive program of policy development around a particular
issue e.g. anti-social behaviour in a disadvantaged neighborhood.
 Fishbowls
A fishbowl is a discussion strategy that seeks to maximize participation in identifying and understanding
issues in response to set questions.
 Planning for Real
Planning For Real has been used to give people a voice in decisions affecting their neighbourhoods
and communities.

 Deliberative polling

Deliberative polling is an attempt to use public opinion research in a new way. A random, representative
sample is first polled on an issue

 Summits
A summit is a large scale, time limited event which brings together large numbers of diverse participants
to consider information, engage in dialogue and to make recommendations for action.
 Collective learning technique

The aim of the World café is to create a discussion environment that feels like a café. World café can
either be conducted online or in a public space.
 Community visioning
It normally involves the facilitation of sessions in which participants are asked to close their eyes and
imagine what their community looks like now, and what it could look like into the future.
 Community cultural development
Community cultural development refers to a cluster of community-based arts practices that involve
artists working with community members to build skills, to share information, understandings and
experiences and to actively involve people in developing their community and/or their culture.

Providing participants with feedback - Providing feedback to those who have participated in
an engagement process, allows them to see whether their views have been accurately represented when
decisions are being made.
Following up on engagement - Follow-up strategies provide those who participated in an engagement
process with advice regarding progress made in addressing the issues raised.
Socio economic character of housing
Economic characters affecting housing design


Affordable housing refers to housing units that are affordable by that section of society whose income
is below the median household income.

Housing tenure describes the legal status under which people have the right to occupy their
accommodation. The most common forms of tenure are:

• Home-ownership: this includes homes owned outright and mortgaged

• Renting: this includes social rented housing and private rented housing.

Related Interests