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AND CONSTRUCTIONTECHNOLOGY
AffordableHousingunderPMAY:HousingforAll
Government of India has announced Pradhan
Mantri Awas Yojana (PMAY) – Housing for all
(Urban) on 25th June 2015, by reforming “Housing
for All” scheme.
PMAY is planned to be implemented in 3 phases.
Phase 1 would span from April 2015 to March 2017
covering completion of affordable housing in 100
cities,
Phase 2 starting from April 2017 and ending in March
2019 covering another 200 cities and
Phase 3 between April 2019 and March 2022 for
remaining cities.
AffordableHousing?
• Amolik Heights Affordable Housing Project
at Sector 88, Faridabad
Type Carpet Area Balcony Area Price
1 BHK Type 1 374 Sq. Ft 86 Sq. Ft Rs. 15,39000/-
1 BHK Type 2 372 Sq. Ft 82 Sq. Ft Rs. 15,29000/-
1 BHK Type 3 372 Sq. Ft 82 Sq. Ft Rs. 15,29000/-
2 BHK Type 1 507 Sq. Ft 80 Sq. Ft Rs. 20,68000/-
2 BHK Type 2 523 Sq. Ft 80 Sq. Ft Rs. 21,32000/-
3 BHK Type 1 645 Sq. Ft 100 Sq. Ft Rs. 26,30000/-
3 BHK Type 2 645 Sq. Ft 100 Sq. Ft Rs. 26,30000/-
Food, Beverages 42 25 35 19 15 21 23
and Tobacco
Transportation 17 20 6 13 11 17 12
Housing and utilities 12 10 9 22 19 27 18
Personal Products 8 11 4 8 14 10 13
and services
Healthcare 7 13 7 6 19 4 8
Apparel 6 5 11 6 4 5 4
Education and 5 9 15 13 12 8 16
recreation
Household products 3 3 6 9 5 7 4
Communication 2 6 7 4 1 1 2
Households by number of
dwelling units (2011) in Mumbai
1%
1%
10% 3% 8% No exclusive room
One room
21%
Two rooms
57% Three rooms
Four rooms
Five rooms
Six or more rooms
Affordability
Slum dwellers
Monthly income: Rs 3000-6000
Disposable income: Rs 500-1000 (@15%)
50 47.49
Pucca 41.17
45
Semi-Pucca
40
Kutcha
No of Houses (in Million)
35 29.79
30
25 18.09
20
15 11.8
8.08 9.16
6.8 6.21
10 4.35
2.35 3.11 3.3 2.7 2.18
5
0
1971 1981 1991 2001 2007 *
(18.5) (28) (39.3) (52.06) (58.83)
Year
80
61.8
60
46 Growth of Slum
40
28
20
0
1981 1991 2001 2017
(In 2001, 24.13% population was in slums on all India basis. In 2011,
population of the country was 1210.98 m )
Decadal Growth Rate of Slums is 34% (Ministry of HUPA). The slum
households are projected to go upto 18 million.
COSTOFCONSTRUCTION
• ‘Land’ and ‘colonisation’ being State subjects, Housing is a State
subject and the responsibility for tackling the housing shortage
primarily vests with the State Governments.
• As against total requirement of Rs.600,000 crore allocation made to
this Ministry under 11th Plan for Housing:
- for JNNURM Rs. 18000 crore
- for ISHUP (Interest Subsidy Scheme for Housing the
Urban Poor) Rs. 1100 crore
- for AHIP (Affordable Housing in Partnership)
Rs. 5000
crore
Total Rs. 24100 crore (4%)
Total requirement
including basic Rs.600,000 crore
infrastructure
Costofconstruction-II
If demand of EWS flat is considered as 17 million and plinth
area as 25 sqm and cost of construction as Rs 20000 per sqm
with normal specifications, cost of construction is estimated to
be Rs 8,50,000 crore to remove all urban slums. Such funding
may be difficult by the government alone as total plan
expenditure of 2015-16 of central government is Rs 4,65,277
crore. Hence either additional resources will have to be
searched or the scheme will have to be implemented in
phases. In case, the scheme is implemented only by central
government, funding of 8,50,000 crore will be met in 17 years if
50,000 crore is allocated annually and there is no inflation
though there appears to be no chance of the same. Even if
funding is shared equally by central government and state
governments, it may take about 8-9 years if there is no
inflation. Thus, public has to shar e the expenditure or some
other schemes like “Rental housing” are to be launched
simultaneously.
Interest Subsidy Scheme
for Urban Poor
A new Pilot Scheme for providing interest subsidy on
housing loans availed by EWS/LIG availed for
acquisition/construction of house
Encourages poor sections to avail of loan facilities
through Banks/HFCs
Subsidy will be 5% on the interest charge for EWS/LIG
upto Rs.1 lakh for the full period of the loan
Loan repayment period permissible 15 to 20 years.
Levy of pre-payment charges would not be permitted.
Targets to cover 0.31 million households under
EWS/LIG segments Borrowers should have plot.
Total subsidy during 11th Plan Rs.1100 crore.
Jawaharlal Nehru National Urban
Mission (JNNURM)
• JNNURM was launched in December 2005 with aim to cover
construction of 1.5 m houses for urban poor during the
Mission period (2005- 2012).
• It has two Sub-Missions :
• Basic Services for the Urban Poor (BSUP) seeks to
provided seven entitlements/services - security of tenure,
affordable housing, water, sanitation, health, education and
social security in low income segments in the 65 Mission
Cities.
• The Integrated Housing and Slum Development Programme
(IHSDP) sought to provide the above mentioned 7
entitlements, services in towns/cities other than the Mission
Cities.
Jawaharlal Nehru National Urban Mission
(JNNURM)…contd.
• Under JNNURM, more than 1.5
million houses have been
sanctioned for the poor
• About 1300 projects have been
sanctioned covering urban India
• These projects involve an outlay of
more than Rs.33,860 crore and
Central Govt. subsidy of Rs.18,500
crore.
Affordable Housing in Partnership :
Modification in JNNURM
• Modification in the guidelines of JNNURM (BSUP) to
facilitate and incentivize land assembly for affordable
housing.
• Provision of central assistance of 25% for the cost of the
provision of civic services for projects for affordable
housing at an approximate cost of Rs.5000 crore.
• The objective of the scheme would be to support the
construction of 1 million affordable dwelling units in the
first phase, with a minimum of 0.25 million EWS dwelling
units.
• Disbursement of funds linked to the actual provision of
amenities. A normative cap per EWS/LIG dwelling unit to
be fixed in consultation with the States for the purpose.
Affordable Housing in Partnership :
Modification in JNNURM…contd.
Criterion for eligible projects:
Dwelling units was a mix of EWS/LIG/MIG categories with
the maximum size of a dwelling unit being at 1200 sq.ft
super area, with at least 25% of them for EWS of 300 sq. ft.
The States encouraged to promote projects in the Public
Private Partnership (PPP) mode in a manner in which there are
competing private sector suppliers in the market for
affordable housing.
State Governments could also consider seeding new areas for
development through their Housing Boards, Development
Authorities as well as through the various employee welfare
organizations.
The scheme operated in the same manner as the JNNURM.
PolicyunderPMAY– HousingforAll
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
square metres and 60 square metres 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.
HUDCO and National Housing Bank (NHB) have been identified as
Central Nodal Agencies (CNAs) to channelize this subsidy to the
lending institutions and for monitoring the progress of this
component. Ministry may notify other institutions as CNA in future.
Under the Mission, beneficiaries can take advantage under one
component only.
For a loan of Rs 600,000, Rate of Interest as 9%, total Loan Period – 15
years, Number of EMIs180, Subsidy Amount would be Rs 220,187.
Technicalguidelines,Capacitybuildingandconstruction
materials
Capacity building
Regulatory issues
Land issue
Quality issue