Schemes that help poor to own a shelter

 Though India can boast of having one of the highest number of High Net Worth Individuals (HNWIs), the Economically Weaker Section (EWS) still occupies the major portion of the population, and providing them with shelter is nothing but a daunting task for any government agencies. 

But still, how many of these people know that there are several Central and state-sponsored schemes through which they can realise their dream of having home? Riding on illiteracy, government apathy and corruption at high levels, these EWS always remain shelter-less.

Though there are several articles, write-ups and news regarding the presence or launching of such schemes, there have been no efforts, either from government agencies or financial institutions to take it directly to the doorsteps of these people.

An earnest effort was made by the Government to set up a Credit Risk Guarantee Fund (CRGF) Trust for Low Income Housing on 1st May, 2012 to facilitate economically weaker sections and low income households in getting credit from banks and housing finance companies. But how many poor people came forward to ustilise this scheme?

Recently, while answering to a question in the lower house of Parliament, Dr. Girija Vyas, Union Minister of Housing and Urban Poverty Alleviation (HUPA), stated that this Scheme provides guarantees for the loans given to EWS/LIG persons up to Rs 5 lakh by lending agencies without any third party guarantee or collateral Security. National Housing bank is the Nodal agency for operationalizing CRGF. 

She said, as on date, 39 Member Lending Institutions have executed the Memorandum of Undertakings (MoUs) to participate in the scheme. The total corpus fund of the Trust is Rs 1000 crore. Government of India has so far released Rs. 150 crore as corpus of the fund. But one thing, which is not clear that where a poor person could find a home with Rs 5 lakh? He could build a home if he has a piece of land. But nowhere in the country, a flat of 40 sq mt could be found for this amount, even in the remotest of remote places, says Diwan Singh, a property dealer and financial adviser from South Delhi.

The Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFSLIH) is already operational. Rs. 5 lakhs ceiling in guarantee has been prescribed keeping in view the average loan size for a 40 sq mt house and the repaying capacity of the people in Economically Weaker Sections and Low Income Group segments, the Minister added.

For those ill informed here are the list of pro-poor housing schemes floated by the government of India in the recent past.

Rajiv Awas Yojana (RAY): Government had launched RAY in June 2011 in two phases-  the preparatory phase for a period of two years which ended in June 2013.  The government has approved the implementation phase of RAY in September 2013 for the period of 2013-2022. The Central support under the scheme is admissible to States/UTs and Central Government Agencies for providing housing including new houses, incremental houses, rental houses, transit housing and development/improvement of basic civic & social infrastructure under the scheme.

Jawaharlal Nehru National Urban Renewal Mission (JNNURM): For rehabilitation of slum dwellers the Government had launched the JNNURM on 3rd December, 2005 for assisting State Governments in providing housing and basic civic services like water, sanitation etc to urban poor/ slum dwellers in 65 select 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).  JNNURM has been extended up to March, 2015 for completion of projects sanctioned up to March, 2012. 

One of the three pro-poor reforms under JNNURM is provision of basic services to urban poor including security of tenure improved housing, water supply, sanitation education health and social security. The reform is envisaged to be an outcome of JNNURM and is to be implemented in a staggered manner over the Mission Period (extended up to 31.3.2015) in convergence with the programme of other Ministries.

Affordable Housing in Partnership (AHP): As an integral part of RAY, the competent authority has also approved continuation of implementation of Affordable Housing in Partnership (AHP) Scheme. The scheme has been amended to provide Rs 75,000 per EWS/LIG dwelling unit of 40 sq m size for housing and internal development components with an objective to encourage private sector participation in affordable housing.

Rajiv Rinn Yojana (RRY): The Centre has implemented RRY with effect from 1st October 2013. Under this Scheme, an interest subsidy of 5 % per annum for loans up to Rs 5 lakh and for tenure of 15-20 years, will be provided to EWS/LIG housing loan borrowers in Urban Areas availing loans from Financial Institutions i.e Scheduled Commercial Banks & HFCs etc.