Housing & slums : related government interventions

Review of Annual Plan 1998-99 and Provision for 1999-2000

Shelter is the basic human requirement that needs to be met on priority basis. Housing policies and programmes, while accepting that housing is essentially a private activity, has to recognise that state intervention is necessary to meet the housing requirements of the vulnerable sections and to create an enabling environment in achieving the goal of "shelter for all" on self-sustainable basis.

Even after 52 years of independence, the country is still grappling with the growing shelter problem, especially of the poor. The problem has further been compounded by rapid increase in urban population. Constant migration of rural population to cities in search of jobs put unbearable strain on urban housing and basic services. The National Building Organisation (NBO) has estimated the 1991 urban housing shortage at 8.23 millions, expects the absolute shortage to decline progressively to 7.57 millions in 1997 and 6.64 millions in 2001. Habitat-II estimates, however, indicate that the shortage will increase to 9.4 millions in 2001.

In view of the above, new Housing and Habitat Policy in 1998 aims at ensuring basic need "Shelter for all" and better quality of life to all citizens by harnessing the unused potentials in Public, private and household sectors. The central theme of the policy is on creating strong Public– Private partnership for tackling the housing and habitat issues. Under the new policy, government would provide fiscal concessions, carry out legal and regulatory reforms and create an enabling environment. The private sector, as the other partner, would be encouraged to take up the land assembly, housing construction and invest in infrastructure facilities.

In the Ninth Plan, special attention is being focused on households at the lowest end of the housing market. The priority groups identified for such support are people below poverty line, SC/STs, disabled, freed bonded labourers, slum dwellers and women headed households. Government as a facilitator is to create the environment in which access to all the requisite inputs will be in tune in adequate quantum and of appropriate quality and standards. A package of incentives is being formulated to attract the private sector to shoulder the task. Cooperative sector and Public Housing Agencies are also being encouraged to share the responsibility. Urban Land Ceiling and Regulation Act (ULCRA), 1976 has been repealed to facilitate land for housing activity. Task of upgradation and renewal of old and dilapidated housing stock is being taken up.

To augment the flow of institutional finance to the housing sector and promoting and                        regulating housing finance institutions. National Housing Bank (NHB) was set up as a subsidiary of the Reserve Bank of India in July 1988. The Housing and Urban Development Corporation (HUDCO) is functioning with equity support provided by Government of India as the apex national techno-financing agency in the sector with focus on housing for Economically Weaker Sections (EWS) and Low Income Group (LIG).

The Special Action Plan (SAP) started from 1998-99 recognises Housing for all as priority area. It sets the target of construction of 20 lakh additional houses every year. In the Ninth Plan, a provision of Rs. 8176.36 crores in the State Sector and Rs. 4873 crores in the central sector has been made for housing. In the central sector the outlay consists of Rs. 873 crores as Budgetary support and Rs. 4000 crores as IEBR (HUDCO).

For providing urban housing, the central govt. operated schemes mainly for providing Institutional and Research support. On the other hand State Governments are implementing various social housing and other schemes according to their plan priorities and local requirements. The estimation of physical progress of new construction and upgradation of old and dilapidated housing stock is difficult as there is no single agency collecting such data from central/state agencies, cooperative housing societies, Public and Private housing.
The only systematic data collection is undertaken in respect of EWS and LIG housing units
under 20 Point Programme. State-wise details of EWS nd LIG housing for the years 1997-98, 1998-99 and 1999-2000 are given in annexures 5.5.1 and 5.5.2, respectively.

During 1997-98, under EWS housing scheme, 104960 housing units were constructed against the target of 168075 units. Only Eight States viz, Andhra Pradesh, Gujarat, Himachal Pradesh, Punjab, Rajasthan, Tamil Nadu, Karnataka and U.P. were able to exceed/achieve the target set for EWS housing. During this period, under LIG housing, achievement was 23179 units against the target of 37541 units. In LIG housing too, only eight states viz, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West Bengal were able to achieve/exceed targets set for the programme.Since construction is a continuing activity an analysis is being made to study the achivement vis-à-vis targets under EWS housing. The states which were able to achieve/exceed targets were Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan and Tamil Nadu. During this period, achievements under LIG housing were 71% as 41244 units were constructed against the target of 57828 units. Only four states viz, Gujarat, Madhya Pradesh, Rajasthan and Tamil Nadu were able to achieve/exceed target set under the programme. Unfortunately, housing activity was not encouraging in the other states due to a variety of reasons. As activity concentrated in only a few states is likely to accelerate regional imbalance
alternative strategies are being thought of.

Review of Annual Plan 1998-99 For Urban Housing total outlay of the Annual Plan 1998-99 was RS. 1763.43 crores (excluding IEBR) comprising Rs.1521.93 crores in the State Sector and Rs. 241.50 crores (excluding IEBR) in the central sector. Against this outlay, anticipated/actual expenditure
in the state sector has Rs.1543.66 crores and Rs. 237.30 crores in the central sector.

Scheme-wise details of central sector expenditure during 1997-98 and 1998-99 for various housing schemes are given in Annexure 5.5.3. During this period, out of the total budgetary support of Rs. 237.30 crores, a maximum of Rs. 110 crores was provided to HUDCO as equity followed by General Pool Accommodation ( Rs. 68.37 crores). Actual expenditure on housing for Para Military Forces, Building Material Technology Promotion Council and Science and Technology, Grants to institutes and Building centres and Night Shelter Scheme was Rs. 50 crores, Rs. 4.40 crores, Rs. 3 crores and Rs. 1 crore respectively.

Details of state-wise anticipated/actual expenditure in State Sector during 1997-98 and 1998-99 are given in Annexure 5.5.4. During 1998-99 anticipated/actual expenditure was 104.4% of the total approved outlay (i.e. Rs 1543.66 crores against Rs.1521.93 Crores).Information on physical achievements of various schemes of state sector is not available.

Annual Plan 1999-2000

In the Annual Plan 1999-2000, in the central sector, an outlay of Rs 297.35 crores has been provided for Housing. In the approved outlay for housing of 1999-2000 for central sector, there is an increase of 25.3% as compared to actual expenditure of 1998-99.

Scheme-wise details of approved outlay of central sector for the Annual Plan 1999-2000 (Budgetary support only) is given in Annexure- 5.5.I. During this year also, highest outlay of Rs. 150 crores have been provided for HUDCO as equity followed by General Pool Accommodation ( Rs. 80 crores), Housing for Para Military Forces ( Rs. 58 crores), BMTPC ( Rs. 4 crores), S&T and Grants to Institutes including Building Centers (Rs. 3 crores) and Night Shelter Scheme (Rs. 1 crore).

State-wise details of approved outlay for State Sector for Annual Plan 1999-2000 is given in Annexure 5.5.4.

Source : http://planningcommission.nic.in