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Green affordable housing in india

PMAY was launched in 2015 to provide a pucca house
to all eligible beneficiaries of urban India by 2022. The
vision of the scheme was ‘housing for all’. Mission will be
implemented as centrally sponsored scheme (CSS) except
for the component of credit linked subsidy that will be
implemented as a central sector scheme. Mission with all its
components has become effective from 17 June 2015 and
will be implemented up to 31 March 2022.
• Against the backdrop of largescale urbanisation over the
next few decades, it is important to identify, evaluate and
address the needs and challenges faced by the largest
chunk of urban housing consumers – the affordable housing
customer. The existing infrastructure needs to keep pace with
the growing demand.
About 72% of the
population used to
live in rural areas, and
28% in urban areas,
as per the census of
India in 2001. By 2011,
these figures changed
to 69% and 31% in
rural and urban,
respectively. In fact,
as per census 2011, the
absolute increase in
population was more
in urban areas than
in rural areas, for the
first time since India’s
independence.[1]
According to estimates,
we can expect around
600 million people
to make urban India
their home by 2031, a
whopping growth of
59% over 2011. For the
smooth functioning
of the economy
and for the health
and well-being of
people a decent and
affordable housing is
fundamental.[1]
• 19 million units (2015) is the current housing deficit in
India, which, is slated to double to 38 million units by 2030,
in the absence of any meaningful intervention. 95% of this
deficit is around the EWS and LIG segments [1].
• Millions of Indian households currently live in cramped,
poorly constructed houses/slum areas/shanties due to the
lack of available housing options, combined with limited
income and minimal access to home finance for lowincome borrowers. They lack access to a clean and healthy
environment, with even basic amenities, such as sanitation,
clean water, sewage, waste management and electricity
often absent. Thus, affordable housing is inevitable and
soon, planned sustainable urbanisation will have to be by
default and not by choice.
Affordability in housing
depends on
Monthly household income (MHI) of
prospective buyers
Affordability of the home buyer
Size of the dwelling unit
The housing scheme needs to cater to job seekers. When
migrants flow into a newly-urbanising area, there arises
immediate need for housing that cannot be catered to by
owning a house and thus, requires provision of affordable
rental accommodation. The housing scheme needs to
ensure that the rent control laws enacted by the centre and
the states find no place in the housing strategy adopted
for new towns and cities as the inability to cater to this
need will spur slum creation. It is this rental regime that has
disincentivised investment in the rental space in India.
Adequate housing was defined as
‘adequate privacy, adequate space,
adequate security, adequate lighting
and ventilation, adequate basic
infrastructure and adequate location
with regard to work and basic facilities
for all at a reasonable cost’ by the
United Nations General Assembly in
December 1988.
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History of the housing
scheme
08 Affordable housing in India
Housing policies have come a long way since 1950
• Due to large scale migration after Independence,
Government of India (GOI) faced a huge housing challenge,
especially in urban areas. So, as an instrument of poverty
alleviation, they took the responsibility for provision of
housing resulting in various schemes for different sections of
the society in its early years.
• Housing policies of the GOI have come a long way since
the 1950s. While at the start of ‘planned development’, the
policies were more welfare centric, later, these came to be
driven by a well-defined constellation of economic interests.
The first National Housing Policy was formulated in 1988.
It was followed by the formulations of National Housing
Policy in 1994, National Housing and Habitat Policy (NHHP)
in 1998 and follow-up of 74th Constitution Amendment of
1992.
• Involvement of multiple stakeholders, repeal of the Urban
Land Ceiling Act and permitting foreign direct investment in
housing and real estate sector were some of the landmark
initiatives introduced by the NHHP. These policy initiatives
focused on transition of public sector role as ‘facilitator’,
increased role of the private sector, decentralisation,
development of fiscal incentives, accelerated flow of housing
finance and promotion of environment-friendly, costeffective technology.
National Urban Housing and Habitat Policy (NUHHP),
2007 identified ‘affordable housing for all’ as a key focus
area to address concerns that could potentially impede
sustainable urban development.
Major objectives of the policy
Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) 2005 was launched with an aim to implement
reform-driven, planned development of cities in a mission
mode with focus on upgradation of urban infrastructure,
creation of housing stock and provision of basic
services to the urban poor, community participation and
accountability of Urban Local Bodies (ULBs). For the
housing sector in particular, its main aim was construction
of 1.5 million houses for the urban poor during the mission
period (2005–2012) in 65 mission cities [2].
Two of the sub-missions under JNNURM are dedicated
to urban housing problems
Basic Services for the Urban Poor (BSUP): Managed by
the Ministry of Urban Development, the BSUP is designed
for the upgrade and improvement of the conditions of slum
settlements, assuring universal access to basic amenities
such as water and sanitation and social infrastructure
including health, education and social security.
Integrated Housing and Slum Development Programme
(IHSDP): IHSDP seeks to tackle poor housing for urban
Facilitating accessibility to
serviced land and housing
for EWS and LIG
Encouraging both private
and public sectors for land
assembly, development and
disposal
Forging strong partnerships
between public, private and
cooperative sectors
Creating adequate housing
stock both on rental and
ownership basis
Using technology to modernise and enhance energy and
cost efficiency, productivity and quality
Affordable housing in India 09
slum dwellers in cities and towns as per the 2001 Census,
excluding those that were being targeted under BSUP.
Rajiv Awas Yojana (RAY), 2011: With the motto, ‘slumfree India’, the scheme was launched as a CSS, to be
implemented in mission mode during 2013-2022 for the
slum dwellers and the urban poor. It encourages the states
and union territories to tackle the problem of slums in a
definitive manner.
The scope of RAY envisages integrated development of all
existing slums, notified or non-notified, with development,
improvement and maintenance of basic services to the
urban poor, including water supply, sewerage, drainage,
solid waste management, approach and internal roads,
street lighting, community facilities such as community
toilets and baths, informal sector markets and
livelihoods centres.
National Urban Housing Mission (NUHM), 2015 was
launched as a CSS and seeks to meet the gap in urban
housing units by 2022 through increased private sector
participation and active involvement of the states. It has
four broad components or verticals out of which credit
linked subsidy would be implemented as a central sector
scheme and not a CSS. The mission would initially cover
500 class I cities and will be spread across three phases
(2015-2022).
Lack of technical
supervision
Non-assessment
of housing
Project location
in areas lacking
trunk infrastructure
Lack of transparency in
selection of beneficiaries
Weak mechanism
for monitoring
Low quality
homes
Lack of convergence
Loans not availed
by beneficiaries
Gaps
in the
schemes
Affordable housing in India 10
Pradhan Mantri Awas
Yojana (PMAY)
Affordable housing in India 11
Basic features of the scheme
Components of PMAY
PMAY aims at providing a
pucca house, with basic
amenities, to all houseless
households and those
households living in kutcha
and dilapidated house. The
immediate objective is to
cover one crore households
living in kutcha/dilapidated
houses in three years from
2016-17 to 2018-19.
The assistance for
construction of toilet; piped
drinking water, electricity
connection, LPG gas
connection etc. are also
provided in convergence
with other schemes.
The minimum size of the
house is to be 25 sq. m.
(raised from 20 sq. m) with
a hygienic cooking space.
A beneficiary family will
comprise husband, wife,
unmarried sons and/or
unmarried daughters.
The beneficiary family
should not own a pucca
house either in his/her
name or in the name of any
member of his/her family
in any part of India to be
eligible to receive central
assistance under the
mission.
The houses constructed/
acquired with central
assistance under the
mission should be in the
name of the female head of
the household or in the joint
name of the male head of
the household and his wife.
The houses under the
mission should be designed
and constructed to meet
the requirements of
structural safety against
earthquake, flood, cyclone,
landslides etc. conforming
to the National Building
Code and other relevant
Bureau of Indian Standards
(BIS) codes.
All houses built or expanded
under the mission should
essentially have toilet
facility.
PMAY(U)
Caters to the housing needs of the poor urban residents.
Depending upon the annual household income, the urban
beneficiaries are classified into three components, namely,
EWS, LIG and middle-income group (MIG). In addition, slum
dwellers in the urban areas can also apply for the PMAY.
PMAY-Rural (PMAY(R))
Helps the financially deprived families residing in rural
India own a property. The houses in the rural areas will
have all the necessary basic facilities, such as electricity,
water supply, proper sewage system, sanitation facility.
12 Affordable housing in India
Fund sharing of PMAY
Selection of beneficiaries
Central and state governments will share
the cost of unit assistance in this scheme
in the ratio 60:40 in plain areas and 90:10
for north-eastern and the Himalayan
states. 90% of the funds is to be released
to states/UTs for the construction of
new house from the annual budgetary
grant for PMAY. This would also include
4% allocation towards administrative
expenses. 5% of the budgetary grant is to
be retained at the central level as server
found for special projects.
The annual allocation to the states is to be
based on the annual action plan approved
by the empowered committee and the
funds to States/UTs is to be released in two
equal instalments.