TOWN PLANNING

SLUM DEVELOPMENT POLICIES

Abin Jose
Aishwarya.B
Amal.K.Plakkat
SLUM DEVELOPMENT POLICIES
Pradhan Mantri Awas Yojana- Housing for All (Urban)/Housing for All
(HFA)
The Mission is being implemented during 2015-2022 and provides central assistance to Urban Local
Bodies (ULBs) and other implementing agencies through States/UTs for:
In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation
Credit link subsidy system
Affordable Housing in Partnership
Subsidy for beneficiary-led individual house construction/enhancement.

Credit linked subsidy component is being implemented as a Central Sector Scheme while other three
components as Centrally Sponsored Scheme (CSS).

All statutory towns as per Census 2011 and towns notified subsequently would be eligible for
coverage under the Mission.
Credit Linked Subsidy Scheme (CLSS)
The Mission, in order to expand institutional credit flow to the housing needs of urban poor
will implement credit linked subsidy component as a demand side intervention.

Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary
Lending Institutions resulting in reduced effective housing loan and Equated Monthly
Installment (EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a
discount rate of 9 %.
Credit Linked Subsidy Scheme for EWS/LIG

Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking
housing loans from Banks, Housing Finance Companies and other such institutions would be
eligible for an interest subsidy at the rate of 6.5% for a tenure of 20* years or during tenure
of loan whichever is lower.

The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and
additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Credit linked
subsidy would be available for housing loans availed for new construction and addition of
rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of
houses being constructed under this component of the mission should be upto 30 sq.m and
60 sq.m for EWS and LIG, respectively in order to avail of this credit linked subsidy. The
beneficiary, at his/her discretion, can build a house of larger area but interest subvention
would be limited to first Rs. 6 lakh only.
Credit Linked Subsidy Scheme for MIG

The newly launched CLSS for MIG covers two income segments in the MIG viz. Rs.6,00,001 to
Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum. In the MIG-I, an
interest subsidy of 4% has been provided for loan amounts up to Rs.9 lakh while in MIG-II, an
interest subsidy of 3% has been provided for loan amount of Rs.12 lakh.

The interest subsidy will be calculated at 9% NPV over a maximum loan tenure of 20 years or
the actual tenure, whichever is lesser. Housing loans above Rs. 9 lakh and Rs. 12 lakh will be
at non-subsidized rates.

CLSS for MIG will support acquisition/ construction of house (including re-purchase) of 90
square meters and 110 square meters carpet area as per income eligibility.
Housing and Urban Development Corporation
(HUDCO)
HUDCO encourages the development of serviced plots and part of loan to be given to general
public for construction by themselves. These houses/flats/plots are made available to the
general public or on outright sale by the agencies concerned depending upon actual demand.

Under urban housing, HUDCO has so far extended assistance for supporting 56.77 lakh
residential units

The various projects being funded by HUDCO under Housing include the following:-
Land Acquisition and Development
Urban/Rural Housing for EWS/ LIG/MIG/ HIG and Other Categories
Staff Rental Housing
Slum rehabilitation/ in-situ development
Repairs and Renewal
Public sector /Private sector Housing Projects
Co-operative Housing Societies both Apex and Primary

Slum Upgradation

The loans under such schemes are given to the housing boards, slum clearance board, development
authorities, improvement trusts, local bodies etc.
To help the urban poor for up gradation/improvment of slum as well as housing in inner city areas which are
predominantly inhabited by low income groups.
NATIONAL HOUSING BANK
NHB has been established to achieve, inter alia, the following objectives-
To promote a sound, healthy, viable and cost effective housing finance system to cater to all
segments of the population and to integrate the housing finance system with the overall
financial system.
To promote a network of dedicated housing finance institutions to adequately serve various
regions and different income groups.
To augment resources for the sector and channelise them for housing.
To make housing credit more affordable.
To regulate the activities of housing finance companies based on regulatory and supervisory
authority derived under the Act.
To encourage augmentation of supply of buildable land and also building materials for
housing and to upgrade the housing stock in the country.
To encourage public agencies to emerge as facilitators and suppliers of serviced land, for
housing