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9th Five Year Plan(1997-2002)

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Ninth Plan Priorities and Strategies

While housing needs of all segments of the population will have tobe met, the Ninth Plan will focus special attention on households atthe lower end of the housing market, the priority groups identifiedfor such support, such as eg. People below poverty line , SC/ST,disabled, freed bonded labourers, slum dwellers and women

headed housholds. Government will, as a facilitator , create an environment in which

access to all the requisite inputs will be in time, in adequatequantum and an appropriate quality and standards.

There will be provision for more direct intervention by theGovernment in the case of lower segments of the housing marketand selected disadvantaged groups.

A package of incentives and concessions to attract private sectorswould be introduced to shoulder the task of housing for the poor.

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Special Action Plan Urban Housing

Government has set a goal to provide housing for all and towards this endit proposes to facilitate the construction of twenty lakh additional housingunits annually.

The target of additional dwelling units has been broadly bifurcated as 13lakh units for rural areas and 7 lakh units for urban areas.

Based on the average cost of EWSand LIG housing units of Rs. 35000 andRs. 1 lakh respectively the investment requirement for 7 lakh new unitswould be of the order of around Rs. 4000 crores.

The extend of funding from institutional finance is proposed to be 70 percent and the balance 30 per cent is proposed to be met partly as subsidyfrom Central/State Governments and partly as beneficiary contribution incash, kind and labour.

Investment expected from the institutional financing bodies would be ofthe order of Rs. 2800 crores.

A package of incentives and concessions is needed to attract the privatesector.

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Main ingredients of the composite

housing strategy are: Indira Awas Yojana (IAY) for construction of new houses free of cost for the target

group below the poverty line comprising SCs/STs, freed bonded labourers and alsonon-SCs/STs families to continue.In addition, a new component for upgradation ofkutcha and unserviceable houses is being introduced.

Credit cum-subsidy scheme to cover people upto twice the income level of theBelow Poverty Line families. Assistance in the form of subsidy and loan on a 50:50

basis within Indira Awas Yojana(IAY) cost norms. Innovative Stream for Rural Housing and Habitat Development (ISRHHD) to

encourage the use of cost effective, environment friendly, scientifically tested andappropriate indigenous and modern designs, technologies and materials.

National Housing Bank(NHB) to finance 1 lakh housing units under the SwarnaJayanti Housing Finance Scheme.

Greater equity participation to HUDCO for construction of additional houses in rural

areas. Rural Building Centres to facilitate technology transfer, information dissemination,

skill upgradation and production of cost effective and environment -friendlymaterials.

Basic Minimum Services(BMS) Programmes Housing is one of the sevencomponents identified under the BMS to provide housing to the shelterless poor ina time bound manner.

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Special Action Plan for Rural Housing

Indira Awaas Yojana (IAY)-The Indira Awaas Yojana is the mostimportant rural housing scheme which aims at providing dwellingunits free of cost to the rural poor living below the poverty line.

On 1.1.1996 with the restructuring of Jawahar Rozgar Yojana (JRY),IAY became an independent Centrally Sponsored Scheme (CSS) forshelter for the rural poor with resources being shared on a 80:20ratio between the Centre and States.

The main objective of the scheme is to construct dwelling units freeof cost for the target group below the poverty line which comprisesSC/ST, freed bonded labourers and also non-SC/ST families.

The cost norms under IAY have been periodically increased and inthe latest upward revision the maximum ceiling of assistanceadmissible under IAY has been raised from Rs.14,000 to Rs.20,000in plain areas and from Rs.15,800 to Rs.22,000 in the hilly/difficultareas.

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Implementation

The IAY is implemented through District Rural DevelopmentAgencies (DRDAs) specially set up in each district of thecountry for the implementation of rural developmentprogrammes or through Zilla Parishads.

At the village level the onus is on the gram sabha to identifyand select the beneficiaries.

However, given that most State Governments also havetheir own rural housing programmes, in order to facilitatethe implementation of a composite housing plan in the

States, it is proposed that the Centrally Sponsored Schemeof Indira Awas Yojana be transferred to the State sector, tobe implemented by the State Governments with Centralassistance specifically earmarked for this purpose.

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ii) Credit-cum-Subsidy Scheme (CCS): There are a large

number of households in the rural areas who have not beencovered under IAY, since they do not fall within the BPLcategory. For such households living just above the povertyline, but still constituting the segment of economically weakersections, a new Credit-cum-Subsidy Scheme (as a sub-schemeof IAY) is proposed to be launched covering people upto twice

the income level of the BPL families. Under this scheme it is proposed that 50% of the assistance

would be in the form of subsidy and 50% as loan but within theIAY cost norms (presently Rs.20,000 for the plain areas andRs.22,000 for the hilly/difficult area).

The loan portion would be provided by financial institutions,commercial banks, housing boards, etc. and the refinancefacility will be provided from HUDCO, National Housing Banketc. The funding of the subsidy portion would be shared in theratio of 80:20 between the Centre and the States. It isproposed to launch this scheme in 1998-99 .

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Implementation

The Credit-cum-Subsidy Scheme and theInnovative Stream for Rural Housing andHabitat Development would also be

implemented by the DRDAs/Zilla Parishads. The former scheme would be implemented in

collaboration with financialinstitutions/commercial banks, housingboards with the refinance facility beingprovided by HUDCO and the NHB.

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iii) Innovative Stream for Rural Housing and HabitatDevelopment (ISRHHD): The Innovative Stream forRural Housing and Habitat Development (ISRHHD) isproposed to be launched as a sub scheme of IAY on a

pilot project basis for the BPL poor. Under this schemeit is proposed to encourage the use of cost effective,environment friendly, scientifically tested and provenindigenous and modern designs, technologies andmaterials to construct IAY houses suited to the

particular location. The Innovative Stream for Rural Housing and Habitat

Development would be implemented on a project basisthrough HUDCO/NGOs.

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iv) National Housing Bank/Commercial Banks Funding: TheNational Housing Bank (NHB) and other banks would haveto enhance their performance in rural housing.

The Golden Jubilee Rural Housing Finance Scheme (GJRHFS)

was launched by the National Housing Bank in 1997-98with its coverage extending to the rural areas and to smalltowns having a population upto 50,000.

The benefits of this scheme have however been corneredmainly by the small towns. The total estimated contribution

of NHB and other commercial banks to rural housingannually is only 0.6 lakh units.

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v) Rural Building Centres (RBCs):To address theprimary objectives of technology transfer, informationdissemination, skill upgradation through training ofrural masons, plumbers etc. and production of costeffective and environment friendly materials, there is aneed to establish an institutional network of RBCs in allthe districts in the rural areas as has been done in theurban areas.

The scheme of Rural Building Centres would beimplemented by HUDCO/well known State ruralhousing organisations and NGOs through the DRDAs.

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vi) Housing and Urban Development Corporation:The Housing and Urban Development Corporation(HUDCO) is functioning with equity supportprovided by Government of India, as the apex

national techno-financing agency in the housingsector. So far its operations have been largelyconfined to urban areas. However, at presentHUDCO is directing 15% of its total housing

resources for financing housing activity in the ruralareas and constructing approx. 3.00 lakh ruralhouses annually.