Housing For All: A  Mega  Mission of  The New  Central  Government

Housing For All

Published on: Jun 28, 2015 @ 12:11

The  Prime  Minister  Mr.  Narendra  Modi  on  Thursday  launched  his  government’s  much awaited  mega  urban schemes, including  Housing for All  under  Prime  Minister  Awas  Yojana (PMAY)  and  other.

Under  Prime  Minister  Awas  Yojana,  the  centre  plans  to  create  2  crore  houses  for  urban poor including Economically  Weaker  Sections  (EWS)  and  Lower  Income  Groups  (LIG)  in  urban areas  by  the  year  2022. In this  project,  the  central  will  provide  a  grant  of  Rs 1.00 lakh  to Rs 2.30 lakh  per  house  by  way  of  a  6.5  per cent  interest  subvention  scheme.

Mr. Modi  observed  that,  ”A  house  was  a  turning  point  in  the  lives  of  poor,  which  leads towards  a  better  life and  the  government‘s  effort  was  to  not  just  provide  a  house,  but  to  the right  environment  to  live  life  to  the fullest.”

Regarding  the  existing  housing  shortage  of  2  crore  units, The  Prime  Minister  said  India would  complete  75 years  of  Independence  in  2022,  and  by  then,  it  was  our  responsibility  to provide  a  house for all.”
Development  of  large-scale  affordable  housing  projects  can  play  a  key  role  in  achieving  the mission  of housing  for  all  and  proper  growth  of  urban  India. Indian  cities  lack  low-income housing ,  which  has  resulted in  the  proliferation  of  slums  and  unorganized  real  estate  across the  country.  An  affordable  housing  project should  be  located  within  reasonable  distances from workplaces  and  should  be  connected  adequately  through public  transport.

The  objective  of  creating  affordable  housing  is  to  provide  a  house  for  all. It  means provision of  adequate shelter  to  those  whose  needs  are  not  met  by  the  open  market. People  who  look to  buy  houses  in  urban areas are  mainly  those  who  have  been  in  the  city  for  a  long  time and  require  new  houses  due  to  growing family size. Another  segment  that  requires  affordable homes  are  city  migrants  who  cannot  afford  to  buy houses currently  but  are  capable  to  rent housing  premises.

Developing  affordable  housing  in  Indian  cities  faces  significant  challenges  due  to  several economic  regulatory and  urban  issues.  The  lack  of  availability  of  urban  land,  rising  threshold costs  of  construction  and  regulatory issues  are  supply-side  constraints.

Government  agencies  such  as  Urban  Local  Bodies  and  Urban  Development  Departments  are responsible  for laying  down  guidelines  and  bylaws  for  affordable  housing. Generally, the developers  have  to  get  50-60 approvals  and  clearances  to  start  the  residential  projects.  The approval  process  is  horrendous  and  needs  to be improved. The  government  should  streamline the  process  of  approvals  and  clearances  by  creating  a  single-window  clearance  system  so that  developers  can  join  the  fold  without  being  worried  about  such hassles.

The  government  has  adopted  several  policies  to  create  an  environment  of  growth  for  this sector.  The  policy includes  providing  greater  access  to  funding  on  the  one  hand  and extending  liquidity  to  the  end  user  to strengthen  their  buying  capacity.

The  Government  has  allowed  FDI  of  up  to  100  per  cent  in  real  estate  projects.  There  is  a provision  for reduction  in  the  area  from  50,000 sq. ft.  to  20,000 sq. ft.  and  reduction  in minimum  capitalization  for  FDI investment  from  $10 million  to  $5 million.  This  will  boost the  affordable  homes  sector  which  were  struggling to  develop  large  projects.  Making  them smaller  and  more  manageable  will  attract  FDI  ( Foreign  Direct Investment)  and  expertise  in setting  up  new  township  and  cities.

Some  developers  are  developing  low  cost  and  affordable  housing  projects  for  the  low-income  group  of  the society. The  government  have  also  looked at  PPP  (Public  Private Partnership)  model  for  development  of  these properties. Private  sectors, which  comprises residential  developers  develop  affordable  housing  projects  and  sell them  in  the  open  market.

The  Prime  Minister  said  the  central  government  would  protect  consumer’s  right  and  the Real Estate Regulator Bill  would  be  approved  by  Parliament  in  the  monsoon  session.  The  current Central  Government has  plans  to provide  housing for all  by  2022  and  this  plan  can  be successful  only  when  we  have  a  perfect balance between affordable  housing  projects  and others.


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