FICCI International Real Estate Summit 2008
September 10-11, 2008 Mumbai, India
Affordable Housing:
Concept to Commissioning
By S.K.Singh Joint Secretary (Housing)
Ministry of Housing & Urban Poverty Alleviation Government of India
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Structure of Presentation
I. II. III. Vision & Scenario Eleventh Plan (2007-2012) & Key Schemes Strategic Framework
IV. The Way Forward
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I. VISION & SCENARIO National Urban Housing & Habitat Policy, 2007
Affordable Housing for All Spotlight on EWS Housing for promoting social inclusion Special focus on weaker sections & Minorities and empowerment of women within ambit of urban poor Public partnerships with
● the Cooperative Sector ● the Labour Housing Sector ● the Employee Welfare Housing Sector ● the Employer Housing Sector and ● the Private Sector
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I. VISION & SCENARIO
Housing Access in India, 2001
Household having: No Exclusive Room One Room Two Rooms More than two Rooms %age of Households 2.3 35.1 29.5 33.1
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I. VISION & SCENARIO
Total Housing Shortage
Housing shortage at the
beginning of 11th Five Year Plan (1.4.2007).
24.71 million
dwelling units
Additional Housing Requirement for the 11th
Plan ( 2007-2012)
1.82 million
dwelling units
Total housing 26.53 Million requirement during 11th Plan dwelling units
Period including the carried over housing shortage
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I. VISION & SCENARIO
Category-wise Housing Shortage
Estimated Urban Housing Unit Shortage as on 1.4.2007:
Total EWS LIG : : : 24.71 m 100.00% 21.78 m 2.89 m 0.04 m 88.14% 11.69% 0.16%
MIG&HIG :
More than 99% shortage is for EWS and LIG segments
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I. VISION & SCENARIO
Financial Investment Required for Overcoming Shortage Rs.in Billion
For 24.71 million Dwelling Units. Additional housing requirement (7.26 million Units) during 11th Plan Total 1,471 2,141
3,613
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I. VISION & SCENARIO
Quality of Housing Stock
50 45 40 No of Houses (in Million) 35 30 25 20 15 10 5 0 11.8 4.35 2.35 6.8 3.11 6.21 3.3 8.08 2.7 9.16 2.18 18.09 47.49 Pucca Semi-Pucca Kutcha 29.79 41.17
1971 (18.5)
1981 (28)
1991 (39.3) Year
2001 (52.06)
2007 (58.83)
*
The figure in Parenthesis is the total housing stock (in Million)
* Source:
Technical Group on Estimation of Urban Housing Shortage, NBO, MoHUPA
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I. VISION & SCENARIO
Growth of Slums
61.8 mn (21.6) 46 mn (21.1) 26 mn (16.3)
Source: Annual Report 2006-07, MoHUPA
Slum Population as %age of total urban population is given in parenthesis
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I. VISION & SCENARIO
Tenth Five Year Plan (2002-2007)
The Two Million Housing Programme envisaged construction of 3.5 million additional housing units during the Plan (0.7 million each year) in urban areas. The actual achievement during the 10th Plan was: Agency DUs (in Million) ● HUDCO 1.38 ● HFI/sBank 2.24 ● Cooperative Sector 0.40 4.02 Million DUs
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II. ELEVENTH PLAN & KEY SCHEMES
Projected Housing Scenario
JNNURM launched in December, 2005 envisages provision of housing & basic services to 1.5 million beneficiaries Interest Subsidy Scheme for Urban Poor (ISHUP) envisages provision of housing to 0.4 million beneficiaries HUDCO
(10% more than achievement in 10th Plan) (10% more than achievement in 10th Plan)
(10% more than achievement in 10th Plan)
DUs in Million
1.5
0.4
HFIs/Banks
Cooperatives
1.53 2.46 0.44
6.33 Million DUs
Total
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II. ELEVENTH PLAN & KEY SCHEMES
Strategic Considerations
Social Infrastructure and Access of Services to the Urban Poor. Spotlight on Gender and disadvantaged Categories/Groups. Land and colonization being in the State List, Central-State Partnership necessary for overcoming the housing shortage. Provision of Basic Physical Services essential alongwith Housing. Basic Services to be supported by appropriate Urban Infrastructure. 10
II. ELEVENTH PLAN & KEY SCHEMES
JNNURM
No. of Houses Sanctioned No. of Houses under Progress Urban Reform: Earmarking of 25% of Municipal Budget as BSUP Fund; Timeline Target of 27 cities Urban Reform: Earmarking of 2025% of developed land for EWS/LIG; Timeline Target of 16 cities 1.04 million 0.26 million 27 cities achieved 16 cities achieved
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II. ELEVENTH PLAN & KEY SCHEMES
Interest Subsidy Scheme for Urban Poor
The Ministry is introducing a new scheme for providing interest subsidy of 5% on housing loans by banks/HFCs & MFIs for EWS/LIG segments of society for construction of houses. It is aimed at providing 400,000 Dwelling Units during the 11th Five Year Plan. The total interest subsidy requirements for the construction of 0.4 million houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 11 billion.
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II. ELEVENTH PLAN & KEY SCHEMES
Other Initiatives
The Ministry proposes to revive Building Centre Scheme during the 11th Plan in order to facilitate dissemination of low cost technologies amongst various stakeholders. Government has set up a High Level Task Force to look into various aspects of providing “Affordable Housing for All”. Urban Statistics for HR and Assessment (USHA) aims at the development of national database, MIS and knowledge repository relating to urban poverty, slums, housing and construction related statistics. Government has made Integrated Low Cost Sanitation scheme (ILCS) more attractive and implementable by revising the Guidelines. Enhancing livelihoods of the Urban Poor is vital for converting the need for Housing into Demand. ● Micro Entrepreneurs assisted since inception: 1,146,585 ● Skill training provided since inception: 1,222,299
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III. STRATEGIC FRAMEWORK
Urban Planning Social and Economic Inclusion Supply of Land Finance Technology Housing Initiatives Role of Stakeholders
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III. STRATEGIC FRAMEWORK
Urban Planning
Symbiotic development of rural and urban areas in line with the objectives of the 74th Constitution Amendment Act. Regional Planning approach taking the whole State/UT as a region, under the Town & Country Planning Acts in the States. Encouraging State Governments, Urban Local Bodies, Development Authorities to periodically update their Master Plans and Zoning Plans. Developing Greenfield towns & integrated urban housing extensions of existing towns. Devising adequate safeguards for promoting a healthy environment with special emphasis on ‘Green Lungs’ of the city and green belts around cities.
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III. STRATEGIC FRAMEWORK
Social and Economic Inclusion
Focus on Urban Poor. Women-headed Households. Weaker sections and Minorities. Mainstreaming the Poor and Disadvantaged.
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III. STRATEGIC FRAMEWORK
Supply of Land
Innovative spatial incentives like relaxation of Floor Area Ratio (FAR) for ensuring that 2025% of the FAR are reserved for EWS / LIG. Facilitating accessibility to serviced land and housing with focus on economically weaker sections and low income group categories. Encouraging new Integrated townships and Special Economic Zones. Private Sector to be permitted land assembly within the purview of Master Plans.
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III. STRATEGIC FRAMEWORK
Finance
Developing a secondary mortgage market for enhancing flexibility in the housing market. Nurturing Reverse Mortgage Based Securitization (RMBS) through NHB, Scheduled Banks and HFCs. Floating of Housing Bonds for releasing additional houses in the residential market with focus on EWS & LIG. Promoting larger flow of funds from private sources by designing innovative financial instruments. Adopting a proactive housing finance policy including micro-finance and related self-help group programmes. 18
III. STRATEGIC FRAMEWORK
Technology
Transfer of proven, cost-effective building materials and technologies from lab to land. Encouraging low cost, local building materials based on agro-industrial wastes. Encouraging low energy consuming construction techniques. Promoting rain-water harvesting, dual piping and capturing monsoon run-off for augmenting water supply. Promotion of prefabricated factory made building components for mass housing with high quality construction standards. Preparation of detailed city maps by GIS mapping through satellite data, aerial survey and ground verification.
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III. STRATEGIC FRAMEWORK
Housing Initiatives
In situ Slum Redevelopment In situ Slum Upgradation – Provision of shelter to the urban poor at their present location with non transferable rights for a period of 10-15 years. Inner City Renewal Projects – Creating better environment with cross subsidization and spatial incentives. Relocation Projects – In cases where relocation is required on account of water pollution, safety problems or other critical reasons. Fast and reliable transportation to work sites will be provided. Greenfield Towns to be developed as well as urban housing extensions of existing towns with complementary infrastructure and MRTS corridors. SEZs – To be developed with both FDI and national investment in housing and infrastructure.
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III. STRATEGIC FRAMEWORK
Role of Stakeholders
Centre – To advise and guide States/UTs to adopt and implement the NUHHP 2007 in a time bound manner. States – To prepare State Urban Housing & Habitat Policy and State Action Plans. ULBs – To ensure that Development Plans/Master Plans as well as Zonal Plans and Local Area Plans are made and updated regularly so that adequate provision is made for the homeless as well as slum dwellers. Banks/HFIs – To reassess their strategies to be more inclusive in terms of low-income beneficiaries as well as extend their coverage to low income neighbourhoods. R&D – To intensify efforts for transfer of innovative technologies and materials from lab to field.
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IV. THE WAY FORWARD
States to prepare State/UT Housing and Habitat Policies and Action Plans Socially Inclusive Urban Planning National Land Policy & Greenfield Towns Increasing supply of Land SEZs & 74th Constitutional Amendment ‘No profit no loss housing’
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IV. THE WAY FORWARD
In situ upgradation as a policy Spatial Incentives for Private Investment in low cost housing Innovative Financial Instruments for provision of shelter to the urban poor Innovative technologies Multiple Stakeholders & Public Private Partnerships
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IV. THE WAY FORWARD
Development of a roadmap jointly with various stakeholders for achieving the objective of
“Affordable Housing for All”.
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“I will give you a Talisman. Whenever you are in doubt or when the self becomes too much with you, apply the following test: Recall the face of the poorest and weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him.”
Mahatma Gandhi
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Thank You
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