Background Note on Ministry of Housing & Urban Poverty Alleviation on the occasion of Economic Editors’ Conference
Background
Government of India has recognized that housing is a very important source of employment; has a large multiplier effect on the economy and demand in about 20 manufacturing sectors; and there is a large unmet need for housing in the country, especially for middle and low income groups. Housing finds a prominent place in the sectors with potential for employment and investment opportunities. The sector has therefore, figured in the various stimulus packages announced by the Government.
In the current financial year, the Government maintaining that lower and middle income housing deserves to be supported to stimulate this segment of house owners, has announced one per cent interest subsidy to individuals for loans up to Rs 10 lakhs for houses that do not cost more than Rs 20 lakhs. The interest subsidy will be routed through the scheduled commercial banks and the housing finance companies registered with the National Housing Bank. This interest subsidy will be available for a period of one year. A subsidy of Rs 1,000 crore will be provided this purpose. In order to provide a further stimulus to the housing sector by providing tax relief, it has been decided to amend Section 80 IB (10) of the Income Tax Act so as to allow the tax holiday in respect of profits derived from projects approved between the 1st April 2007 to 31st March, 2008; if such projects are completed on or before 31st March, 2012.
In follow-up of various packages and its own objectives of tackling the housing shortage, the Ministry has launched two new schemes and is in the process of launching another scheme by the name of Rajiv Avas Yojana (RAY).
Proposed Rajiv Awas Yojana (RAY)
The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the last four years is reshaping our cities and has been widely welcomed. It will continue to focus on infrastructure, basic services and governance reform and increase support to cities to upgrade public transport. Over 15 lakh houses are under construction for the urban poor. There is a need to focus urban housing programmes on the poor living in slums.
The UPA Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the Rajiv Awas Yojana which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. The Government's effort would be to create a slum free India through the Rajiv Awas Yojana.
Hon’ble MHUPA & T and Secretary (HUPA) had a series of meetings with nodal Secretaries of States/UTs, Vice-President/CEOs of Urban Development Authorities and Municipal Commissioners of select cities/towns, Technical Advisory Group (TAG) members, Slum Federation of India and select experts/NGOs to discuss and finalize the possible elements of the proposed scheme.
The Concept Note on RAY was finalized and sent to Planning Commission for their ‘in principle’ approval. The Planning Commission has accorded its ‘in principle’ approval for the proposed scheme recently. The draft guidelines of the scheme has been prepared and circulated to all States/UTs/Central Ministries and experts/NGOs for comments.
Developing a robust database on slums is critical for implementation of the proposed Rajiv Awas Yojana (RAY). The Ministry of HUPA has released funds for Slum/Household/Livelihoods surveys in 394 class I cities having more than one lakh population in the country. The surveys are in progress. Funds will also be released for other towns/cities in a phased manner. An e-enabled MIS is being developed for processing of data and building a national database.
Jawaharlal Nehru Urban Renewal Mission (JNNURM)
· More than 14.5 lakh houses sanctioned all over the country (14,59,272).
· 1304 projects of affordable housing and basic amenities to the urban poor with outlay of more than Rs 33,860 crores approved.
· Additional Central Assistance (Grant) of Rs. 18,500 crores committed (representing more than 100% of the 7-year allocation initially provided for 2005-12)
· Additional Central Assistance (ACA) of Rs 7192.02 crores released to States/UTs.
· 63 Mission cities covered under BSUP & 761 cities/towns covered under IHSDP.
· About 3.81 lakh houses in progress and 1.65 lakh dwelling units completed as against the mid-term target of 5 lakhs units in progress.
· Progress of 3 key pro-poor reforms (Land reservation for urban poor, earmarking of municipal budget for the urban poor and implementation of 7-Point Charter for the urban poor and under JNNURM largely on track.
· Financial support for setting up of 23 Programme Management Unit (PMU) at State level in 23 States/UTs approved.
· Financial Support for setting up of 101 Project Implementation Units (PIUs) at Urban Local Body (ULB) level approved.
· An Online JNNURM tracking system as part of Integrated Poverty Monitoring System is developed and is under implementation
· A framework for Third Party Inspection and Monitoring established and agencies for Third Party Inspection and Monitoring empanelled by Mission Directorate. Detailed guidelines have been issued to States.
· States have been exhorted to start preparations for social audit of projects under BSUP & IHSDP. All detailed project reports and minutes of BSUP & IHSDP have been put on the website to establish transparency and sharing of information.
· A Toolkit on comprehensive capacity Building programme has been developed and circulated to all State/UT Governments. Financial assistance is being provided for skill training, capacity building, and City/State urban resource centres.
· More than 90 capacity building/handholding programmes have been conducted across the country and more than 12,000 State/parastatals/local body officials trained in project formulation, design, implementation and monitoring.
· Progress on 3 Pro-Poor Key Reforms under JNNURM (BSUP & IHSDP)
o Progress of 3 key reforms largely on track
o Internal earmarking within local body budgets for Basic Services to the Urban Poor: 48 cities have undertaken implementation of this reform
o Earmarking of at least 20-25% of developed land in all housing projects (both public and private agencies) for EWS/LIG category:
o 17 States (43 Cities) have issued the policy directives to reserve developed land in public and/or private housing projects
o Implementation of 7- Point Charter: Provision of 7 Basic Entitlements/Services:
o This reform is to be implemented in a staggered manner over the Mission Period in convergence with the programmes of other Ministries as this is also an outcome of the Mission.
Interest Subsidy Scheme For Housing The Urban Poor (ISHUP)
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) has been conceived for providing interest subsidy on housing urban poor to make the housing affordable and within the repaying capacity of EWS/LIG. The scheme encourages poor sections to avail of loan facilities through Commercial Banks/HUDCO for the purposes of construction of houses and avail 5% subsidy in interest payment for loans upto Rs. 1 lakh. The total interest subsidy requirements for the construction of 3.10 lakhs houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 1100 crores.
The Scheme will leverage flow of institutional finance for the EWS and LIG segment households and result in creation of additional housing stock of 3.10 lakh houses for EWS/LIG segments over the next 4 years (2008-12) out of which 2.13 lakh dwelling units are targeted for EWS housing and 0.97 lakh for LIG housing. Households with monthly income of upto Rs 3,300 are classified as EWS while those with monthly income between Rs 3,300 and Rs 7,300 are termed LIG.
Loan will be available for construction of new houses. Loan repayment periods will be permissible generally ranging form 15-20 years. The subsidy will be 5% p.a. for EWS and LIG, admissible for a maximum loan amount of Rs. 1 lakh over the full period of the loan. Beneficiary borrowers may choose fixed or floating rates (the consequences clearly explained to the borrowers by PLIs). An additional 1% p.a. maximum will be permitted to be charged by banks/HFCs if fixed rate loans are extended which will be subject to reset after a minimum period of 5 years. Mortgage of the dwelling unit be accepted as primary security. However, there would be no collateral security/third party guarantee for loans upto and inclusive of Rs. 1 lakh excluding group guarantee. No levy of prepayment charges would be permitted.
Under the scheme, preference (subject to beneficiaries being from EWS/LIG segments) will be given to Scheduled Caste, Schedule Tribe, Minorities, Person with disabilities and women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
In order to disseminate the details of Scheme and clarify doubts, this Ministry has held two consultations with Housing Secretaries of States/UTs and representatives of Public Sector Banks (PSBs) on 4th and 22nd May 2009. Banks/HFIs which have to act as the Primary Lending Institutions (PLIs) have responded well to the scheme and so far the following Banks/HFIs have signed Memorandum of Agreement (MOA) with the two Central Nodal Agencies (CNAs), namely National Housing Bank (NHB) & Housing & Urban Development Corporation Ltd. (HUDCO) who are to act as financial intermediaries for release of subsidy to PLIs under the Scheme.
Banks
1. State Bank of India
2. Oriental Bank of Commerce
3. United Commercial Bank (UCO Bank)
4. Indian Bank
5. Corporation Bank
6. Punjab & Sind Bank
7. Syndicate Bank
8. Union Bank of India
9. Punjab National Bank
10. Central Bank of India
11. Bank of Baroda
12. State Bank of Mysore
13. Allahabad Bank
14. Jammu & Kashmir Bank
15. Vijaya Bank
16. Dena Bank
17. Karnataka Bank Ltd.
HFCs
1. Housing Development & Finance Corporation (HDFC) Ltd.
2. Housing & Urban Development Corporation (HUDCO) Ltd.
3. Dewan Housing Finance Ltd. (DHFL)
4. LIC Housing Finance Ltd.
5. Manipal Housing Finance Ltd.
6. Vishwakriya Housing Finance Ltd.
This has further been followed up by visits to different states and meetings with the State Secretaries, Municipal Commissioners, Senior level bank officers etc. and during last three months Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa and Chhattisgarh have been covered. The response of the States has been encouraging and the scheme has been received well by the State Governments.
Affordable Housing in Partnership
The Scheme of Affordable Housing in Partnership aims at operationalising the strategy envisaged in the National Urban Housing & Habitat Policy (NUHHP) 2007, of promoting various types of public-private partnerships – of the government sector with the private sector, the cooperative sector, the financial services sector, the state parastatals, urban local bodies, etc. – for realizing the goal of affordable housing for all.
The Scheme has been introduced as part of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and developed after consultation with States/UTs who have agreed to make urban land available at affordable rates.
The scheme is primarily applicable to the 65 cities covered under the BSUP programme. Other cities of population above 5 lakhs could be considered during implementation with approval of the National Steering Group for JNNURM, if adequate number of projects is not forthcoming from the 65 cities. However, project proposals from non-BSUP towns could be considered for sanction based on a review of the implementation of the Scheme by the Ministry of Housing & Urban Poverty Alleviation after two years.
The basic aim of the Scheme is to provide stimulus to economic activities through affordable housing programmes in partnership including with the private sector. The Scheme will also strive to ensure equitable supply of land, shelter and services at affordable prices to all sections of society, and thereby to prevent the growth of slums in urban areas. The projects which should be eligible under this scheme for assistance would need to meet the following two criteria:
1) Dwelling units should be a mix of EWS/LIG/MIG categories with the maximum size of a dwelling unit being at 1200 square feet super area, with at least 25% of them for EWS of about 300 square feet. In terms of carpet area, the minimum carpet area for EWS category shall be 25 square metres and maximum carpet area for MIG category shall be 80 square metres.
2) The sale price of dwelling units should have an upper ceiling in terms of Rupees per square metre of carpet area. The price ceiling would be settled in consultation with the States/UTs for different classes of cities.
Nine project proposals have been received by the Ministry. The same are being appraised.
Draft Model Real Estate (Regulation of Development) Act 200_____
In order to promote planned and healthy real estate development of colonies and apartments with a view to protecting consumer interest on the one hand and to facilitate smooth and speedy urban construction on the other; Ministry of Housing & Urban Poverty Alleviation has drafted a draft Model Real Estate (Regulation of Development) Act 200_____. The draft bill can be accessed on the website of the Ministry (http://mhupa.gov.in) under "What is new" ticker.
The draft bill seeks to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain a website containing all project details, with a view to protecting, on the one hand the public interest in relation to the conduct and integrity of promoters and other persons engaged in the development of such colonies and to facilitating on the other the smooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties and for matters connected therewith or incidental thereto.
The bill provides for compulsory registration with the Regulatory Authority for development of land into a Colony of plots or construction of a building or conversion of any existing building or part thereof into apartments, for the purpose of marketing all or some of the apartments, except when the area of land proposed to be developed into a colony does not exceed one thousand square meters or the number of apartments proposed to be constructed does not exceed four.
The bill also provides that no promoter shall issue or publish an advertisement or prospectus, offering for sale any plot, building or apartment, or inviting persons who intend to take such plots, buildings or apartments to make advances or deposits without registering with the Regulatory Authority and without first filing a copy of the advertisement or prospectus in the office of the Regulatory Authority. The bill also has provisions for
a. Responsibility of the Promoter to enter all record or details on the website of the Regulator;
b. Responsibility of promoters regarding veracity of the advertisement or prospectus;
c. No deposit or advance to be taken by promoter without first entering into an agreement of sale;
d. Responsibility of Promoter to take measure for protection and safety of property;
e. Responsibility of the Promoter regarding the account of sums taken from or on behalf of the allottees;
f. Responsibility of the promoter to the allottees during project period etc.
Comments/suggestions on the draft bill have been invited from public and other stakeholders by 06.11.2009 through issue of public notice, as also through communications to States/UTs, business chambers etc. So far comments from 77 stakeholders have been received. However, States/UTs have not responded in the matter and being reminded.
Integrated Low Cost Sanitation (ILCS) Scheme
The "Integrated Low Cost Sanitation" Scheme aims at conversion of individual dry latrine into pour flush latrine thereby liberating manual scavengers from the age old, obnoxious practice of manually carrying night soil.
ILCS scheme was initially started in 1980-81 through the Ministry of Home Affairs and later through Ministry of Social Justice & Empowerment. The scheme was transferred in 1989-90 to Ministry of Urban Development & Poverty Alleviation and from 2003-2004 onwards to Ministry of UEPA/HUPA. The scheme has helped in constructing/converting over 28 lakh latrines to liberate over 60000 scavengers so far. While implementing the ILCS scheme, it was observed that the scheme did not perform well due to various reasons. To make the scheme more attractive and implementable the Guidelines have been revised w.e.f. 17th January, 2008.
The main objective of the Scheme is to convert low cost sanitation units through sanitary two pit pour flush latrines with superstructures and appropriate variations to suit local conditions (area specific latrines), but 25% of the funds of the scheme are also made available for construction of new latrines where EWS households have no latrines. Under the Scheme, central subsidy is 75%, State Subsidy 15% and beneficiary share is 10%. The upper ceiling cost is Rs.10,000/- for the complete unit. For the States falling in the category of difficult and hilly areas, 25% extra cost is provided. 2009-10 is aimed to be the last year of the scheme.
Within the last one year, States of Andhra Pradesh, West Bengal, Nagaland and Assam have stated that they have no dry latrines in their states. Presently only four States remain in the country who need to address this issue namely, Bihar, Uttarakhand, J&K and UP. Under the revised guidelines of ILCS, a total of 2,49,534 units for conversion and 36,396 units for construction have been sanctioned so far.
Revised Swarna Jayanti Shahari Rozgar Yojana
With a view to provide gainful employment to the urban unemployed and underemployed through encouraging the setting up of self-employment ventures or provision of wage employment and skill development, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), in implementation from 01.12.1997, has been comprehensively revamped. The new scheme has commenced from 2009-2010. SJSRY will have five major components, namely-
(i) Urban Self Employment Programme (USEP)
(ii) Urban Women Self-help Programme (UWSP)
(iii) Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
(iv) Urban Wage Employment Programme (UWEP)
(v) Urban Community Development Network (UCDN)
The following major changes have been effected in the scheme:
(i) For the beneficiary under the Urban Self Employment Programme (USEP) component of the Scheme, the education limit criteria of “not educated beyond 9th standard” has been removed and now no minimum or maximum educational qualification level has been prescribed for the purpose of eligibility of assistance.
(ii) For the self-employment (individual category), the project cost ceiling has been enhanced to Rs. 2.00 Lakhs from the existing Rs. 50000/- and the subsidy has also been enhanced to 25% of the project cost (subject to a maximum of Rs. 50000/-), from the existing 15% of the project cost (subject to a maximum of Rs. 7500/-).
(iii) For the group enterprises set up by urban poor women, the subsidy has been made as 35% of the project cost or Rs. 300,000/- or Rs. 60,000/- per member of the Group, whichever is less. The minimum number required to form a women group has been reduced from 10 to 5. The revolving fund entitlement per member has also been enhanced from the existing Rs. 1000/- to Rs. 2000/-.
(iv) The Skill Training of the urban poor component has been restructured and quality skill training will be provided to the urban poor linking it with certification, imparted preferably on Public-Private Partnership (PPP) mode, with the involvement of reputed institutions like IITs, NITs, Poly-techniques, ITIs, other reputed agencies etc. The average expenditure ceiling per trainee has been enhanced from the Rs. 2600/- to Rs. 10000/-.
Central Allocation under SJSRY has been enhanced to Rs 515 Crores in 2009-10.
National Policy on Urban Street Vendors (2009) and Draft Model Bill 'The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009
Street vendors constitute an integral part of our urban economy. With a view to give recognition to urban street vendors for their contribution to the society and also to strengthen urban poverty alleviation initiatives in terms of creation of conditions for decent work, the Government of India has revised Street Vendors’ Policy 2004 comprehensively and has developed a model law for street vendors to enable them carry out their trade without harassment from public officials. The new policy suggests that the City/Town Master Plans/Zonal Plans/Local Area Plans must reserve adequate space for the street vendors including vendors’ markets. It also calls for registration and issue of identity cards to street vendors. Further, Town Vending Committee (TVC), with 40% of the members being street vendors themselves, is to be constituted in all cities/towns and wards (if considered necessary) to discharge the following functions:
o undertaking periodic surveys
o registration and issuance of Identity Cards
o monitoring vending activities
o Assessing and determining maximum holding capacity of each vending zone, etc.
Cities/towns are required to make demarcation of 'Restriction Free Vending Zones', 'Restricted Vending Zones' and 'No-vending Zones' depending upon the ground realities. The new policy recommends the conduct of comprehensive, digitized photographic surveys of street vendors and their locations by competent professional institutions/agencies and maintenance of computerized information systems. The new policy envisages the enactment of law to facilitate street vending and accordingly, a model law has been circulated to State Governments.
Background
Government of India has recognized that housing is a very important source of employment; has a large multiplier effect on the economy and demand in about 20 manufacturing sectors; and there is a large unmet need for housing in the country, especially for middle and low income groups. Housing finds a prominent place in the sectors with potential for employment and investment opportunities. The sector has therefore, figured in the various stimulus packages announced by the Government.
In the current financial year, the Government maintaining that lower and middle income housing deserves to be supported to stimulate this segment of house owners, has announced one per cent interest subsidy to individuals for loans up to Rs 10 lakhs for houses that do not cost more than Rs 20 lakhs. The interest subsidy will be routed through the scheduled commercial banks and the housing finance companies registered with the National Housing Bank. This interest subsidy will be available for a period of one year. A subsidy of Rs 1,000 crore will be provided this purpose. In order to provide a further stimulus to the housing sector by providing tax relief, it has been decided to amend Section 80 IB (10) of the Income Tax Act so as to allow the tax holiday in respect of profits derived from projects approved between the 1st April 2007 to 31st March, 2008; if such projects are completed on or before 31st March, 2012.
In follow-up of various packages and its own objectives of tackling the housing shortage, the Ministry has launched two new schemes and is in the process of launching another scheme by the name of Rajiv Avas Yojana (RAY).
Proposed Rajiv Awas Yojana (RAY)
The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the last four years is reshaping our cities and has been widely welcomed. It will continue to focus on infrastructure, basic services and governance reform and increase support to cities to upgrade public transport. Over 15 lakh houses are under construction for the urban poor. There is a need to focus urban housing programmes on the poor living in slums.
The UPA Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the Rajiv Awas Yojana which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. The Government's effort would be to create a slum free India through the Rajiv Awas Yojana.
Hon’ble MHUPA & T and Secretary (HUPA) had a series of meetings with nodal Secretaries of States/UTs, Vice-President/CEOs of Urban Development Authorities and Municipal Commissioners of select cities/towns, Technical Advisory Group (TAG) members, Slum Federation of India and select experts/NGOs to discuss and finalize the possible elements of the proposed scheme.
The Concept Note on RAY was finalized and sent to Planning Commission for their ‘in principle’ approval. The Planning Commission has accorded its ‘in principle’ approval for the proposed scheme recently. The draft guidelines of the scheme has been prepared and circulated to all States/UTs/Central Ministries and experts/NGOs for comments.
Developing a robust database on slums is critical for implementation of the proposed Rajiv Awas Yojana (RAY). The Ministry of HUPA has released funds for Slum/Household/Livelihoods surveys in 394 class I cities having more than one lakh population in the country. The surveys are in progress. Funds will also be released for other towns/cities in a phased manner. An e-enabled MIS is being developed for processing of data and building a national database.
Jawaharlal Nehru Urban Renewal Mission (JNNURM)
· More than 14.5 lakh houses sanctioned all over the country (14,59,272).
· 1304 projects of affordable housing and basic amenities to the urban poor with outlay of more than Rs 33,860 crores approved.
· Additional Central Assistance (Grant) of Rs. 18,500 crores committed (representing more than 100% of the 7-year allocation initially provided for 2005-12)
· Additional Central Assistance (ACA) of Rs 7192.02 crores released to States/UTs.
· 63 Mission cities covered under BSUP & 761 cities/towns covered under IHSDP.
· About 3.81 lakh houses in progress and 1.65 lakh dwelling units completed as against the mid-term target of 5 lakhs units in progress.
· Progress of 3 key pro-poor reforms (Land reservation for urban poor, earmarking of municipal budget for the urban poor and implementation of 7-Point Charter for the urban poor and under JNNURM largely on track.
· Financial support for setting up of 23 Programme Management Unit (PMU) at State level in 23 States/UTs approved.
· Financial Support for setting up of 101 Project Implementation Units (PIUs) at Urban Local Body (ULB) level approved.
· An Online JNNURM tracking system as part of Integrated Poverty Monitoring System is developed and is under implementation
· A framework for Third Party Inspection and Monitoring established and agencies for Third Party Inspection and Monitoring empanelled by Mission Directorate. Detailed guidelines have been issued to States.
· States have been exhorted to start preparations for social audit of projects under BSUP & IHSDP. All detailed project reports and minutes of BSUP & IHSDP have been put on the website to establish transparency and sharing of information.
· A Toolkit on comprehensive capacity Building programme has been developed and circulated to all State/UT Governments. Financial assistance is being provided for skill training, capacity building, and City/State urban resource centres.
· More than 90 capacity building/handholding programmes have been conducted across the country and more than 12,000 State/parastatals/local body officials trained in project formulation, design, implementation and monitoring.
· Progress on 3 Pro-Poor Key Reforms under JNNURM (BSUP & IHSDP)
o Progress of 3 key reforms largely on track
o Internal earmarking within local body budgets for Basic Services to the Urban Poor: 48 cities have undertaken implementation of this reform
o Earmarking of at least 20-25% of developed land in all housing projects (both public and private agencies) for EWS/LIG category:
o 17 States (43 Cities) have issued the policy directives to reserve developed land in public and/or private housing projects
o Implementation of 7- Point Charter: Provision of 7 Basic Entitlements/Services:
o This reform is to be implemented in a staggered manner over the Mission Period in convergence with the programmes of other Ministries as this is also an outcome of the Mission.
Interest Subsidy Scheme For Housing The Urban Poor (ISHUP)
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) has been conceived for providing interest subsidy on housing urban poor to make the housing affordable and within the repaying capacity of EWS/LIG. The scheme encourages poor sections to avail of loan facilities through Commercial Banks/HUDCO for the purposes of construction of houses and avail 5% subsidy in interest payment for loans upto Rs. 1 lakh. The total interest subsidy requirements for the construction of 3.10 lakhs houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 1100 crores.
The Scheme will leverage flow of institutional finance for the EWS and LIG segment households and result in creation of additional housing stock of 3.10 lakh houses for EWS/LIG segments over the next 4 years (2008-12) out of which 2.13 lakh dwelling units are targeted for EWS housing and 0.97 lakh for LIG housing. Households with monthly income of upto Rs 3,300 are classified as EWS while those with monthly income between Rs 3,300 and Rs 7,300 are termed LIG.
Loan will be available for construction of new houses. Loan repayment periods will be permissible generally ranging form 15-20 years. The subsidy will be 5% p.a. for EWS and LIG, admissible for a maximum loan amount of Rs. 1 lakh over the full period of the loan. Beneficiary borrowers may choose fixed or floating rates (the consequences clearly explained to the borrowers by PLIs). An additional 1% p.a. maximum will be permitted to be charged by banks/HFCs if fixed rate loans are extended which will be subject to reset after a minimum period of 5 years. Mortgage of the dwelling unit be accepted as primary security. However, there would be no collateral security/third party guarantee for loans upto and inclusive of Rs. 1 lakh excluding group guarantee. No levy of prepayment charges would be permitted.
Under the scheme, preference (subject to beneficiaries being from EWS/LIG segments) will be given to Scheduled Caste, Schedule Tribe, Minorities, Person with disabilities and women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
In order to disseminate the details of Scheme and clarify doubts, this Ministry has held two consultations with Housing Secretaries of States/UTs and representatives of Public Sector Banks (PSBs) on 4th and 22nd May 2009. Banks/HFIs which have to act as the Primary Lending Institutions (PLIs) have responded well to the scheme and so far the following Banks/HFIs have signed Memorandum of Agreement (MOA) with the two Central Nodal Agencies (CNAs), namely National Housing Bank (NHB) & Housing & Urban Development Corporation Ltd. (HUDCO) who are to act as financial intermediaries for release of subsidy to PLIs under the Scheme.
Banks
1. State Bank of India
2. Oriental Bank of Commerce
3. United Commercial Bank (UCO Bank)
4. Indian Bank
5. Corporation Bank
6. Punjab & Sind Bank
7. Syndicate Bank
8. Union Bank of India
9. Punjab National Bank
10. Central Bank of India
11. Bank of Baroda
12. State Bank of Mysore
13. Allahabad Bank
14. Jammu & Kashmir Bank
15. Vijaya Bank
16. Dena Bank
17. Karnataka Bank Ltd.
HFCs
1. Housing Development & Finance Corporation (HDFC) Ltd.
2. Housing & Urban Development Corporation (HUDCO) Ltd.
3. Dewan Housing Finance Ltd. (DHFL)
4. LIC Housing Finance Ltd.
5. Manipal Housing Finance Ltd.
6. Vishwakriya Housing Finance Ltd.
This has further been followed up by visits to different states and meetings with the State Secretaries, Municipal Commissioners, Senior level bank officers etc. and during last three months Gujarat, Maharashtra, Kerala, Karnataka, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Rajasthan, Orissa and Chhattisgarh have been covered. The response of the States has been encouraging and the scheme has been received well by the State Governments.
Affordable Housing in Partnership
The Scheme of Affordable Housing in Partnership aims at operationalising the strategy envisaged in the National Urban Housing & Habitat Policy (NUHHP) 2007, of promoting various types of public-private partnerships – of the government sector with the private sector, the cooperative sector, the financial services sector, the state parastatals, urban local bodies, etc. – for realizing the goal of affordable housing for all.
The Scheme has been introduced as part of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and developed after consultation with States/UTs who have agreed to make urban land available at affordable rates.
The scheme is primarily applicable to the 65 cities covered under the BSUP programme. Other cities of population above 5 lakhs could be considered during implementation with approval of the National Steering Group for JNNURM, if adequate number of projects is not forthcoming from the 65 cities. However, project proposals from non-BSUP towns could be considered for sanction based on a review of the implementation of the Scheme by the Ministry of Housing & Urban Poverty Alleviation after two years.
The basic aim of the Scheme is to provide stimulus to economic activities through affordable housing programmes in partnership including with the private sector. The Scheme will also strive to ensure equitable supply of land, shelter and services at affordable prices to all sections of society, and thereby to prevent the growth of slums in urban areas. The projects which should be eligible under this scheme for assistance would need to meet the following two criteria:
1) Dwelling units should be a mix of EWS/LIG/MIG categories with the maximum size of a dwelling unit being at 1200 square feet super area, with at least 25% of them for EWS of about 300 square feet. In terms of carpet area, the minimum carpet area for EWS category shall be 25 square metres and maximum carpet area for MIG category shall be 80 square metres.
2) The sale price of dwelling units should have an upper ceiling in terms of Rupees per square metre of carpet area. The price ceiling would be settled in consultation with the States/UTs for different classes of cities.
Nine project proposals have been received by the Ministry. The same are being appraised.
Draft Model Real Estate (Regulation of Development) Act 200_____
In order to promote planned and healthy real estate development of colonies and apartments with a view to protecting consumer interest on the one hand and to facilitate smooth and speedy urban construction on the other; Ministry of Housing & Urban Poverty Alleviation has drafted a draft Model Real Estate (Regulation of Development) Act 200_____. The draft bill can be accessed on the website of the Ministry (http://mhupa.gov.in) under "What is new" ticker.
The draft bill seeks to establish a Regulatory Authority and an Appellate Tribunal to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, and to host and maintain a website containing all project details, with a view to protecting, on the one hand the public interest in relation to the conduct and integrity of promoters and other persons engaged in the development of such colonies and to facilitating on the other the smooth and speedy construction and maintenance of such colonies, residential buildings, apartments and properties and for matters connected therewith or incidental thereto.
The bill provides for compulsory registration with the Regulatory Authority for development of land into a Colony of plots or construction of a building or conversion of any existing building or part thereof into apartments, for the purpose of marketing all or some of the apartments, except when the area of land proposed to be developed into a colony does not exceed one thousand square meters or the number of apartments proposed to be constructed does not exceed four.
The bill also provides that no promoter shall issue or publish an advertisement or prospectus, offering for sale any plot, building or apartment, or inviting persons who intend to take such plots, buildings or apartments to make advances or deposits without registering with the Regulatory Authority and without first filing a copy of the advertisement or prospectus in the office of the Regulatory Authority. The bill also has provisions for
a. Responsibility of the Promoter to enter all record or details on the website of the Regulator;
b. Responsibility of promoters regarding veracity of the advertisement or prospectus;
c. No deposit or advance to be taken by promoter without first entering into an agreement of sale;
d. Responsibility of Promoter to take measure for protection and safety of property;
e. Responsibility of the Promoter regarding the account of sums taken from or on behalf of the allottees;
f. Responsibility of the promoter to the allottees during project period etc.
Comments/suggestions on the draft bill have been invited from public and other stakeholders by 06.11.2009 through issue of public notice, as also through communications to States/UTs, business chambers etc. So far comments from 77 stakeholders have been received. However, States/UTs have not responded in the matter and being reminded.
Integrated Low Cost Sanitation (ILCS) Scheme
The "Integrated Low Cost Sanitation" Scheme aims at conversion of individual dry latrine into pour flush latrine thereby liberating manual scavengers from the age old, obnoxious practice of manually carrying night soil.
ILCS scheme was initially started in 1980-81 through the Ministry of Home Affairs and later through Ministry of Social Justice & Empowerment. The scheme was transferred in 1989-90 to Ministry of Urban Development & Poverty Alleviation and from 2003-2004 onwards to Ministry of UEPA/HUPA. The scheme has helped in constructing/converting over 28 lakh latrines to liberate over 60000 scavengers so far. While implementing the ILCS scheme, it was observed that the scheme did not perform well due to various reasons. To make the scheme more attractive and implementable the Guidelines have been revised w.e.f. 17th January, 2008.
The main objective of the Scheme is to convert low cost sanitation units through sanitary two pit pour flush latrines with superstructures and appropriate variations to suit local conditions (area specific latrines), but 25% of the funds of the scheme are also made available for construction of new latrines where EWS households have no latrines. Under the Scheme, central subsidy is 75%, State Subsidy 15% and beneficiary share is 10%. The upper ceiling cost is Rs.10,000/- for the complete unit. For the States falling in the category of difficult and hilly areas, 25% extra cost is provided. 2009-10 is aimed to be the last year of the scheme.
Within the last one year, States of Andhra Pradesh, West Bengal, Nagaland and Assam have stated that they have no dry latrines in their states. Presently only four States remain in the country who need to address this issue namely, Bihar, Uttarakhand, J&K and UP. Under the revised guidelines of ILCS, a total of 2,49,534 units for conversion and 36,396 units for construction have been sanctioned so far.
Revised Swarna Jayanti Shahari Rozgar Yojana
With a view to provide gainful employment to the urban unemployed and underemployed through encouraging the setting up of self-employment ventures or provision of wage employment and skill development, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), in implementation from 01.12.1997, has been comprehensively revamped. The new scheme has commenced from 2009-2010. SJSRY will have five major components, namely-
(i) Urban Self Employment Programme (USEP)
(ii) Urban Women Self-help Programme (UWSP)
(iii) Skill Training for Employment Promotion amongst Urban Poor (STEP-UP)
(iv) Urban Wage Employment Programme (UWEP)
(v) Urban Community Development Network (UCDN)
The following major changes have been effected in the scheme:
(i) For the beneficiary under the Urban Self Employment Programme (USEP) component of the Scheme, the education limit criteria of “not educated beyond 9th standard” has been removed and now no minimum or maximum educational qualification level has been prescribed for the purpose of eligibility of assistance.
(ii) For the self-employment (individual category), the project cost ceiling has been enhanced to Rs. 2.00 Lakhs from the existing Rs. 50000/- and the subsidy has also been enhanced to 25% of the project cost (subject to a maximum of Rs. 50000/-), from the existing 15% of the project cost (subject to a maximum of Rs. 7500/-).
(iii) For the group enterprises set up by urban poor women, the subsidy has been made as 35% of the project cost or Rs. 300,000/- or Rs. 60,000/- per member of the Group, whichever is less. The minimum number required to form a women group has been reduced from 10 to 5. The revolving fund entitlement per member has also been enhanced from the existing Rs. 1000/- to Rs. 2000/-.
(iv) The Skill Training of the urban poor component has been restructured and quality skill training will be provided to the urban poor linking it with certification, imparted preferably on Public-Private Partnership (PPP) mode, with the involvement of reputed institutions like IITs, NITs, Poly-techniques, ITIs, other reputed agencies etc. The average expenditure ceiling per trainee has been enhanced from the Rs. 2600/- to Rs. 10000/-.
Central Allocation under SJSRY has been enhanced to Rs 515 Crores in 2009-10.
National Policy on Urban Street Vendors (2009) and Draft Model Bill 'The Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009
Street vendors constitute an integral part of our urban economy. With a view to give recognition to urban street vendors for their contribution to the society and also to strengthen urban poverty alleviation initiatives in terms of creation of conditions for decent work, the Government of India has revised Street Vendors’ Policy 2004 comprehensively and has developed a model law for street vendors to enable them carry out their trade without harassment from public officials. The new policy suggests that the City/Town Master Plans/Zonal Plans/Local Area Plans must reserve adequate space for the street vendors including vendors’ markets. It also calls for registration and issue of identity cards to street vendors. Further, Town Vending Committee (TVC), with 40% of the members being street vendors themselves, is to be constituted in all cities/towns and wards (if considered necessary) to discharge the following functions:
o undertaking periodic surveys
o registration and issuance of Identity Cards
o monitoring vending activities
o Assessing and determining maximum holding capacity of each vending zone, etc.
Cities/towns are required to make demarcation of 'Restriction Free Vending Zones', 'Restricted Vending Zones' and 'No-vending Zones' depending upon the ground realities. The new policy recommends the conduct of comprehensive, digitized photographic surveys of street vendors and their locations by competent professional institutions/agencies and maintenance of computerized information systems. The new policy envisages the enactment of law to facilitate street vending and accordingly, a model law has been circulated to State Governments.
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