National Urban Housing

and Habitat Policy

2007
 Housing and Urban Policy in India

Promote housing and habitat.

Affordable shelter to all.

All the state holders will work along with government.

 Housing and Urban Policy in India
The policies of urban development and housing in India have come a long way since
1950s.

The pressure of urban population and lack of housing and basic services were very
much evident in the early 1950s.

In some cities this was compounded by migration of people from Pakistan.

Perception of the policy makers was that India is pre-dominantly an agricultural and
rural economy, that there are potent dangers of over urbanisation which will lead to the
drain of resources from the countryside to feed the cities.

The positive aspects of cities as engines of economic growth in the context of national
economic policies were not much appreciated and, therefore, the problems of urban
areas were treated more as welfare problems and sectors of residual investment rather
than as issues of national economic importance.
In the First Five Year Plan (1951-56):

The emphasis was given on :

a.) institution building
b.) houses for Government employees and weaker sections.
The Ministry of Works & Housing was constituted .
National Building Organisation and Town & Country Planning Organisation were set up.
Rehabilitation of the refugees from Pakistan and building the new city “Chandigarh’’.
Industrial Housing Scheme was also initiated.
The Centre subsidized Scheme:
a.) to the extent of 50% towards the cost of land
b.) construction.

In the Second Five Year Plan (1956-61):

Housing programme for poor was expanded.

Industrial Housing Scheme was widened to cover all workers.
Three new schemes were introduced:
a.)Rural Housing,
b.)Slum Clearance
c.)Sweepers Housing.
Town & Country Planning Legislations and necessary organizations were set up.
In the Third Five Year Plan (1961-66):

Oriented towards the need of LIG.

A Scheme was introduced in 1959 to give loans to State Govts. for a period of 10 years for
acquisition.
Development of land in order to make available building sites in sufficient numbers.
Master Plans for major cities were prepared.
The State capitals of Gandhi Nagar and Bhubaneswar were developed.

In the Fourth Five Year Plan (1969-74):

High priorty was given to the balanced urban growth.

This was achieved by creation of smaller towns and by planning the spatial location of
economic activity.
Housing & Urban Development Corporation (HUDCO) was established to fund the
remunerative housing and urban development programmes, promising a quick turnover.
 A Scheme for Environmental Improvement or Urban Slums was undertaken in the Central
Sector from 1972-73.
To provide a minimum level of services, like, water supply, sewerage, drainage, street
pavements in 11 cities with a population of 8 lakhs and above.
The scheme was later extended to 9 more cities.

In the Fifth Five Year plan (1974-79):

Reiterated the policies of the preceding Plans to promote smaller towns in new urban
centres, in order to ease the increasing pressure on urbanisation.
This was to be supplemented by efforts to augment civic services in urban areas with
particular emphasis on a comprehensive and regional approach to problems in metropolitan
cities.
Development of small and medium towns.
The Urban Land (Ceiling & Regulation) Act was enacted to prevent concentration of land
holding in urban areas and to make available urban land for construction of houses for the
middle and low income groups.
In the Sixth Five Year Plan (1980-85):

Provision of services along with shelter, particularly for the poor.

The Integrated Development of Small and Medium Towns (IDSMT) was launched in towns
with population below one lakh for provision of roads, pavements, minor civic works, bus
stands, markets, shopping complex etc.
Promote new industries and commercial and professional establishments in small, medium
and intermediate towns.

In the Seventh Five Year Plan (1985-90):

Stressed on housing construction on private sector.

A three-fold role was assigned to the public sector:
a.)mobilisation of resources for housing,
b.)provision for subsidised housing for the poor
c.)acquisition and development of land.
The National Housing Bank was set ,NBO was reconstituted and a new organisation called
Building Material Technology Promotion Council (BMTPC) was set up for promoting
commercial production of innovative building materials.
A network of Building Centres was also set up.
Explicitly recognised the problems of the urban poor .
First time an Urban Poverty Alleviation Scheme known as Urban Basic Services for the
Poor (UBSP) was launched.
In the Eight Five Year Plan (1992-97):

Recognised the role and importance of urban sector for the national economy.
The growth rate of employment in the urban areas averaged around 3.8% per annum, it
dropped to about 1.6% in the rural areas. Therefore, the urban areas have to be enabled to
absorb larger increments to the labour force.
The key issues identified in the emerging urban scenario:
a)The widening gap between demand and supply of infrastructural services badly hitting
the poor.
b)Unabated growth of urban population resulting in housing shortages:
i) proliferation of slums
ii) squatter settlement
iii) decay of city environment
c)High incidence of marginal employment and urban poverty as reflected in NSS 43rd
round that 41.8 million urban people lived below the poverty line.

The response of the Plan to this scenario was the launching of Urban Poverty and Alleviation
Programme of Nehru Rojgar Yojana (NRY)
In the Ninth Five Year Plan (1997-2002):

Ninth Five Year Plan India mainly aims at:

To prioritize agricultural sector and emphasize on the rural development

To generate adequate employment opportunities and promote poverty reduction
To stabilize the prices in order to accelerate the growth rate of the economy
To ensure food and nutritional security
To provide for the basic infrastructural facilities like education for all, safe drinking water,
primary health care, transport, energy
To check the growing population increase
To encourage social issues like women empowerment, conservation of certain benefits for
the Special Groups of the society
To create a liberal market for increase in private investments
In the Tenth Five Year Plan (2006-2007):

At the end of 10th ,5 year plan (2006-2007) housing shortage was estimated to be 24.7
million.
In addition severe shortage in:
a) Drinking water
b) Drainage and sewerage system
c) Sanitation facility
d) Electricity, roads and solid waste management
To fulfill these shortage the housing policy 2007 was made.
The National Urban Housing and Habitat Policy 2007:

PREAMBLE :

Shelter is a basic human need next to food & clothing.

There is a huge shortage of housing in the country 24.7 million.
Shortage of basic services like:
a) Water supply
b) Road networks
c) Sanitation,etc
Due to these shortages, the national urban housing policy focuses on these :
a) Equitable supply of land.
b) Affordable housing.
c) Affordable services.
d)Involving number of stack holders (includes private, co-operate ,industrial &
institutional sectors).
 NEED OF POLICY:
Rapid urbanization & development.

Rural to urban migration.

Promoting balanced regional development.

Creating integrated township.

Increased magnitude of poverty.

Development of a sustainable habitat.

To overcome housing shortage for LIG & EWS.

Shortage is increased to 26.7 million

 PAST POLICIES AND PROGRAMMES:
India adopted policy of economic liberalization & globalization in 1991.
Indian economy to be integrated with the global economy keeping in view first national
policy was framed in 1994.
The goal of the policy was :
a) Increase supply of service land.
b) Provide basic min. services.
c) To promote healthy environment.
National housing & habitat policy 1998 focused on:
a) Habitat (cities) in addition to housing.
b) Quality and cost effectiveness
C) Housing to vulnerable section of the society.
National housing and habitat policy 2007 focused on:
a) Adopting regional planning approach.
b) Redefine the role of govt.
c) Focus on year marking land for E.W.S & L.I.G. groups in housing projects.
d) Govt. to focus on creating affordable housing for E.W.S & L.I.G.
National Slum Development Programme (NSDP):
a)To create houses for slum dwellers.
b)Provision of infrastructure ,water supply,sewerage,sanitation & non formal
education.
c) 2 million housing programmes were launched for E.W.S & L.I.G.
Valmiki Ambedkar Awas Yojana (VAMBAY):
a) To provide subsidies for construction of houses.
b) Improving sanitations.
c) 442369 dwelling units were constructed.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM:
a) 63 towns have been selected
- 7 megacities
- 28 metrocities
- 28 state capital,religious historical towns.
b) Specify infrastructure gap in roads,water supply, drainage etc.

FOCUS AREAS:

National housing and habitat policy 2007:

a) Regional development and development of cities.
b) Providing affordable housing.
c) Major focus on providing shelter for urban poor and vulnerable section.
d) To promote public private partnership.
e) Development of cost effective quality building materials.
The National Urban Housing and Habitat
Policy 2007 aims at:

Promoting Urban Planning

Creating Affordable Housing
Increase flow of Funds
Providing Spatial Incentives
Increase Supply of Land
Making Special Provision for SC/ST/OBC/Minorities/Disabled
Special Provision for Women
Employment Generation
Promoting Public-Private Partnerships
Having Management Information System
Creating Healthy Environment
 The National Urban Housing and Habitat
Policy 2007 aims at:
Promoting Urban Planning :
State Governments, Urban Local Bodies, Development Authorities to periodically update
their Master Plans and Zoning Plans.
To provide housing and basic services for the urban poor.
Promoting balanced urban-rural planning by Regional Planning Approach, take the whole
State/UT as a region, under the Town & Country Planning Acts in the States.
Planning of Mass Rapid Transit Systems (MRTS) at the city Metropolitan Planning Area
and Sub-region levels.

Creating Affordable Housing :

Accelerating the pace of development of housing and related infrastructure.
Creating adequate housing stock both on rental and ownership basis for E.W.S.of society
through appropriate capital or interest subsidies.
Using technology for modernizing the housing sector for enhancing energy and cost
efficiency, productivity and quality.
Technology would be harnessed to meet the housing needs of the poor.
The concept of ‘green’ and ‘intelligent’ buildings would be put in place on the ground.
Increase flow of Funds :
Promoting larger flow of funds from governmental and private sources for fulfilling housing
and infrastructure needs..
Designing suitable fiscal concessions in congruence with the Housing and Habitat Policy.
Removing legal, financial and administrative barriers for facilitating access to tenure, land,
finance and technology.
Shifting to a demand driven approach and from subsidy based housing schemes to cost
recovery-cum-subsidy schemes for housing through a proactive financial policy including
micro-finance and related self-help group programs.

Providing Spatial Incentives:

Innovative spatial incentives like relaxation of Floor Area Ratio (FAR) for ensuring that 20-
25 % of the FAR are reserved for EWS / LIG .
Transferable Development Rights(TDR) for clearance of transport bottlenecks in the inner-
city areas.
Availability of additional FAR in Outer Zones will be promoted with a view to meeting the
housing shortage amongst EWS/LIG.
Careful review of authorized Floor Area Ratio (FAR) in line with international practices for
allowing more efficient use of scarce urban land by construction of high rise buildings.
Ensuring Increase Supply of Land:
Facilitating accessibility to serviced land and housing with focus on E.W.S & L.I.G.categories.
Suitable restructuring for enabling both institutions at the State and Centre levels as well as
the private sector for increasing supply of land.

Making Special Provision for SC/ST/OBC/Minorities/Disabled:

Special efforts for catering to the needs of:
Scheduled Castes,
Scheduled Tribes,
Other Backward Classes,
Minorities,
Disabled persons,
slum dwellers,
street vendors other informal sector workers
vulnerable sections
In relation to housing and access to basic services.

Making Special Provision for Women:

Involving women at all levels of decision .
For ensuring their participation in formulation and implementation of housing policies and
programmes.
Addressing the special needs of women headed households, single women, working women
and women in difficult circumstances in relation to housing serviced by basic amenities.
Employment Generation:
Upgradation of construction skills and accelerated development of housing and infrastructure
sectors for giving an impetus to employment generation.

Promoting Public-Private Partnerships:

Strong partnerships between public, private and cooperative sectors for accelerated growth
in the Housing Sector and sustainable development of habitat.

Having Management Information System:

Establishing a Management Information System (MIS) in the Housing Sector for
strengthening monitoring of building activities in the country.

Creating Healthy Environment:

Developing cities/towns in a manner which promotes a healthy environment.
Encouraging use of renewable energy resources and ensuring effective solid waste
management.
Protecting our cultural heritage and architecture as well as promoting traditional skills with
suitable adaptation to modern technologies.
 ROLE OF GOVERNMENT
CENTRAL GOVERNMENT
GOVT. OF INDIA FRAMES THE POLICY
TO CREATE LEGAL & REGULATORY
FORMWORK.
TO CREATE ENABLE ENVIRONMENT
(SUPPORTIVE ENV.)
TO ENSURE HOUSING FINANCE.
SUPPLY & MANAGEMENT OF LAND.
PROMOTING ENVIRONMENT &
ECOLOGY.
TO PROMOTE RESEARCH &
DEVELOPMENT.
TO DEVELOP A NATIONAL
MANAGEMENT INFORMATION SYSTEM.
STATE GOVERNMENT
TO CREATE SUPPORTIVE ENVIRONMENT.
TO INVOLVE PUBLIC & PRIVATE
PARTNERSHIP.
SKILL UPGRADATION (TO CREATE
QUALIFIED WORK FORCE).
MANAGEMENT INFORMATION SYSYTEM
AT STATE LEVEL.
TO PROMOTE RESEARCH &
DEVELOPMENT.
OPTIMUM UTILIZATION OF LAND.
TO DEVELOP INTEGRATED TOWNSHIP &
URBAN EXTENTION.
 ROLE OF LOCAL BODIES & OTHER AGENCIES
LOCAL BODIES
TO CREATE A SUPPORTIVE ENVIRONMENT.
URBAN PLANNING.
TO PROMOTE PUBLIC AND PRIVATE
PARTNERSHIP.
SPECIAL PROGRAMME FOR
DISADVANTAGES OF SHORTAGE.
OTHER AGENCIES
BANKS PROVIDING FUNDS FOR HOUSING.
TO MAKE AVAILABLE LARGE AMOUNT OF
FUNDS AT THE MOST COMPETITIVE RATES.
TO RATIONALIZED RATES FOR EWS & LIG.
TO FOCUS ON CO-OPERATIVE HOUSING.
CBRI ,ROORKEE : TO RESEARCH FOR
MORE HOUSING ,TECHNIQUES FOR COST
EFFECTIVE HOUSES.
BUILDING MATERIAL .
STANDARDIZATION.
 The Ultimate Goal

The ultimate goal of this Policy is:

To ensure sustainable development of all urban human settlements.

Ensuring better quality of life for all urban citizens.

Action Plan at the State/UT level .

Active involvement of all stakeholders.

Lays special emphasis on provision of social housing for the EWS/LIG categories.

Well-balanced urban development.

.