Disparity in Demand and Supply for Housing Units for the Urban Poor

The Minister for Housing and Urban Poverty Alleviation Kumari Selja has said that the National Urban Housing & Habitat Policy (NUHHP) 2007 aims at promoting sustainable development of habitat in the country with a view to ensuring equitable supply of land shelter and services at affordable prices to all sections of the society. ‘Land’ and ‘Colonisation’ being State subjects, it is for the State Governments to pursue the initiatives under the NUHHP:2007.

                          In a written reply in the Rajya Sabha today she said, a Technical Group constituted by the Ministry of Housing & Urban Poverty Alleviation to estimate housing shortage at the beginning of 11th Plan, has estimated housing shortage as on 2007 to be at 24.71 million dwelling units. It was also estimated that the Housing requirement during 11th Plan period (2007 - 2012) will be 26.53 million. It was estimated as below:

Housing Shortage as the beginning of 11th Five Year Plan	24.71 million
Addition to household	8.71 million
Addition to housing stock	7.27 million
Upgradation of Kacha houses	0.38 million
Total Housing Requirement during the 11th Plan period (2007-2012) (24.71 + 8.71 + 0.38 - 7.27 = 26.53)	26.53 million

She said, to meet this huge shortage it is estimated that an expenditure of Rs. 6,00,000 crores for both housing and basic infrastructure is required. However, the Central Government is supporting the construction of housing for poor sections of the society in urban areas through various programmatic interventions namely:

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM), launched by the Government in the year 2005 supports provision of housing and basic services to urban poor in slums in 65 specified cities under the Sub Mission Basic Services to the Urban Poor (BSUP) and in other cities and towns under the Integrated Housing and Slum Development Programme (IHSDP). The schemes are demand driven and so far 16,12,503 Dwelling Units have been sanctioned for construction/upgradation in 936 cities/towns under BSUP & IHSDP components of JNNURM as on 12.07.2011.

The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) provides for interest subsidy on housing loans to the Economically Weaker Sections (EWS) and Low Income Group (LIG) as part of credit-enablement measures and encourages those households to avail of loan facilities through Commercial Banks/Housing Finance Companies for the purposes of construction/acquisition of houses and avail 5% subsidy in interest payment for loans upto Rs. 1 lakh. Cumulatively, as on 03/08/2011, 7805 beneficiaries in Andhra Pradesh, Chhattisgarh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu   have been covered under the Scheme.

The scheme of Affordable Housing in Partnership seeks assembly of land for construction of affordable housing and provides Central Government assistance towards provision of internal and external infrastructure connectivity. The scheme which was launched in 2009 with an outlay of Rs. 5000 crores, seeks construction of 1 million houses for EWS/LIG/Middle Income Group (MIG) with at least 25% for EWS Category.

A new scheme ‘Rajiv Awas Yojana’ (RAY) has been launched on 02.06.2011. The Scheme will provide financial assistance to States that are willing to assign property rights to slum dwellers for provision of decent shelter and basic civic and social services for slum redevelopment, and for creation of affordable housing stock. Fifty percent (50 %) of the cost of provision of basic civic and social infrastructure and amenities and of housing, including rental housing,  and transit housing for in-situ redevelopment – in slums would be borne by the Centre, including operation & maintenance of assets created under this scheme. For the North Eastern and Special Category States the share of the Centre would be 90% including the cost of land acquision, if required.

The Minister said, given the magnitude of the housing shortage and budgetary constraints of both the Central and State Governments, it is amply clear that Public Sector efforts will not suffice in fulfilling the housing demand.  In view of this scenario, the National Urban Housing and Habitat Policy, 2007 focuses the spotlight on multiple stake-holders namely, the Private Sector, the Cooperative Sector, the Industrial Sector for labour housing and the Services/Institutional Sector for employee housing.  In this manner, the Policy seeks to promote various types of public-private partnerships for realizing the goal of “Affordable Housing for All”.