Govt is looking for partnership to create more affordable homes: Minister

To encourage state concessions and creations of affordable housing stock for construction of half a million houses for Economically Weaker Section (EWS)/ Lower Income Group (LIG) segments, the Centre has recently launched a revised affordable housing in partnership schemes, informed Union Minister for Housing & Urban Poverty Alleviation Dr. Girija Vyas.

Inaugurating the 6th Affordable Housing Summit & Excellence Awards,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in New Delhi recently, the Minister said, to create more housing stock under affordable category, the government is looking for partnership between various agencies i.e Central &  State government/ housing boards and development authorities and Urban Local bodies (ULBs).

Informing the gathering that the scheme now gives increased subsidies to the tune of Rs. 75,000/- to economically weaker section (EWS) or low income group or LIG dwelling units of size 21-40 sq mt, in affordable housing projects being undertaken through various public private partnerships (PPP), the minister said, “Between Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana (RRY) and Affordable Housing in partnership schemes (AHP), the government of India will support establishment of 2.5 million housing units.”

  

She said, the Rajiv Rinn Yojana (RRY) scheme focuses on demand side incentives wherein ministry of housing & urban poverty alleviation provides 5% interest subsidy on housing loans up to Rs. 5 Lakh. This scheme is also likely to be launched by August this year, mentioned Dr. Vyas.

She said, “The top 10 cities in India viz. Mumbai, Delhi-NCR, Bengaluru, Chennai, Kolkata, Ahemdabad, Kochi, Chandigarh, Pune and Hyderabad account for 15-20% of the overall supply in urban India.”

With the effort to reduce the demand-supply gap in this segment, it is noteworthy that from 2007-2012, housing shortfall has declined from 24.8 miilion to 18.7 million, a 25% reduction, she informed

Speaking on the occasion, Arun Kumar Misra, Secretary, Ministry of Housing & Urban Poverty Alleviation said, government in its last cabinet meeting would likely take a decision on Foreign Direct Investment (FDI) in Real estate sector.

On the popular demand on single-window clearance system, being demanded by developers across the country, he said, “At least a large part of central clearances out of 45 are digitized and should be online for clearance system. In the last one year, more than 43 towns in India have adopted the single window clearance system.

He also pointed out, “Without the amendment of rent control laws, we really add much to the system. Nearly 30% people live on rent and more than 10% of houses are lying vacant because of the rent control laws archives.  We can’t have the central law, it has to be state law because the guidelines are already there, and next group of engagement will have to be amendment of rent control laws with the state government.”

The state will have to come out with the urban housing policy (UHP). The transport and affordable housing has given us clearly what exactly requires to be done and I am very happy that states like Rajasthan, Karnataka and Haryana have taken a lead in affordable housing policy, said Secretary.

The real estate sector in India has been a high growth story.  The construction industry is the second largest industry of the country after agriculture accounting for 11% of India’s GDP. Indian construction industry employs 32 million people and its total market size is estimated at Rs. 2480 billion.

Dr. Vyas said, “Ministry focuses on housing for the urban poor, housing represents a key component of economic growth contributing 5% to the GDP and there still being a shortfall of 18.7% million units. I welcome and laud theses developers in supporting the government of India in progressing towards its goal of provision of housing for all”.

Ranan Kapoor, President ASSOCHAM said, “Nearly 28% of India’s population lives in cities and urban areas, a figure that is expected to rise to 40% by 2020. Majority of housing in urban areas caters to the premium segment; thereby a large section of society is unable to own homes. According to the National Housing Board (NHB), an investment of INR 8.5 trillion is required for construction of Affordable Housing in slum and non-slum areas.

Establishing policies that mandate developers to make provisions for the Economically Weaker Sections (EWS) and Low Income Groups (LIG) will encourage the private sector to take up Affordable Housing projects and ensure their timely delivery. Measures like ensuring availability of developed land, TDR, long tenor finance and cheaper loans, Priority Sector Lending, Viability Gap Funding and Single Window clearances will encourage private sector investment and provide much needed impetus to the Affordable Housing segment”, added Kapoor.

Other who also spoke during the conference were Navin M Raheja, Chairman, Real Estate Committee, ASSOCHAM & CMD, Raheja Developers Ltd., B C Jain, Co - Chairman, Real Estate Committee, ASSOCHAM & Chairman, Sunrise Housing Constructions Limited and D.S. Rawat, Secretary General, ASSOCHAM.

Centre launches initiatives to monitor housing schemes

To monitor the number of houses being constructed every year through various government sponsored housing schemes such as JnNURM and Rajiv Awas Yojana (RAY), the centre has launched Housing Start Up Index (HSUI) and a monitoring tool “Integrated Urban Poverty Monitoring System” (IPoMs).

While launching the initiatives, Dr Girija Vyas, Union Minister for Housing and Urban Poverty Alleviation, said, “HSUI is an index that will track the number of houses being constructed every year across the country. The Housing and Construction related activities in our country with its backward and forward linkages and with nearly 254 ancillary industries have huge multiplier effects on the economy. Hence HSUI would indirectly indicate the growth of National Economy itself.”

Housing Start Up Index is a joint initiative of the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) through its integral arm – the National Building Organization and the Reserve Bank of India.

The minister also disclosed that the results of the pilot index initiated in 25 cities would be released in the last week of this month or first week of February 2014.

In her address, she spoke about the various pro-poor housing schemes such as JnNURM, Rajiv Awas Yojana, Rajiv Rinn Yojana (RRY) and National Urban Livelihoods Mission (NULM). Dr Vyas also highlighted the Socio Economic Caste Census (SECC), developed by the MoHUPA, which is a first time initiative in the country. The minister also highlighted other achievements of her department such as Real Estate regulation Bill and the Street Vendors Bill.

The event culminated with the launch of the web-based MIS system Integrated Urban Poverty Monitoring System (IPoMS) for JnNURM & RAY. In order to closely monitor the submission of the Detailed Project Reports under RAY by the States, a web-based tool called the Integrated Urban Poverty Monitoring System or IPoMs has been designed by the Ministry. Through this tool, the implementation of the scheme can be expedited and tracked effectively. This will also ensure transparency and accountability in the implementation of the scheme.

In his welcome address, VP Baligar, Chairman and Managing Director, Housing and Urban Development Corporation Limited (HUDCO) briefly listed out various achievements made by HUDCO in the last one year. The function was attended by A.K. Mishra, Secretary,MoHUPA and several senior officers of the Ministry and HUDCO.

India needs 26.53 million houses in 2012: Selja

The total housing requirement in India has increased a whopping 26.53 million in this fiscal compared to 24.71 million recorded in 2007, the Minister for Housing and Urban Poverty Alleviation (HUPA) Kumari Selja told the Rajya Sabha today.

She said that as per the Census of India, urban population had registered a growth rate of 31.5% in the decade 1991-2001 while it stood at 31.8% in the next decade 2001-2011. In absolute terms, the increase in population during the past two decades has been 68.55 million and 90.99 million.

In a written reply in the Rajya Sabha Kumari Selja said, as per the assessment made by the Technical Group constituted by Ministry of Housing & Urban Poverty Alleviation, the total housing requirement as on 2007 was 24.71 million which was estimated to increase to 26.53 million by 2012.

Urging the state government to provide housing and other facilities to all the citizens, she said, ‘Land’ and ‘Colonisation’ are State subjects. “However, the Central Government is supporting the construction of housing for poor sections of the society in urban areas through various programmatic interventions namely - Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY), The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) and The scheme of Affordable Housing in Partnership.