NATIONAL
HOUSING POLICY
Pankaj
Jain *
Housing is an
important economic activity besides being a basic necessity. As
part of the construction industry, which accounts for more than
50 per cent of the development outlays, housing has emerged as
a major sector of economy having backward and forward linkages
with almost all other sectors.
The Central Government
adopted the National Housing and Habitat Policy in July 1998.
Its thrust is on creation of an enabling environment for an all-round
growth of the housing sector. For the vulnerable and weaker sections
of the society, the Government is playing the role of direct provider.
A Centrally-sponsored scheme called Valmiki Ambedkar Awas Yojana
(VAMBAY) was launched last year with a view to ameliorating the
conditions of the urban slum dwellers living below poverty line
who have inadequate shelter. The scheme has the primary objective
of facilitating the construction and upgradation of the dwelling
units in the slum areas and to provide health and enabling urban
environment through community toilets under Nirman Bharat Abhiyan,
a component of the scheme. The scheme is being implemented through
HUDCO.
The response
from the State/UT Governments to the scheme has been overwhelming.
This is evident from the fact that against the Government allocation
of Rs. 69 crore during 2001-2002, large demands from more than
16 States/UTs were received and an amount of Rs. 73.56 crore was
finally released comprising an additional Rs. 4.56 crore made
available out of the savings of the Department from other heads.
During the current financial year, Central subsidy to the extent
of Rs. 138.31 crore has so far been released out of the budget
provision of Rs. 256.85 crore. This also includes a release of
Rs. 26.37 crore to the Gujarat government in May 2002 for repairing
or reconstruction of partially or completely damaged houses of
the riot victims. Thus a total sum of Rs. 211.87 crore has so
far been released since the inception of the scheme for construction
of 1,06,038 dwelling units and 20,817 toilet seats.
Another major
initiative for the weaker sections is the Two Million Housing
Programme. Though the programme is basically for the State sector
housing schemes with financial assistance from HUDCO and other
housing finance institutions(HFIs), banks and cooperative housing
finance societies, the progress of the scheme is being monitored
by the Ministry of Urban Development and Poverty Alleviation.
The Two Million Housing Programme envisages addition of 20 lakh
dwelling units every year out of which 7 lakh units are to be
taken up in the urban areas and 13 lakh in the rural areas. Even
though the Ministry of Urban Development and Poverty Alleviation
is basically responsible for 7 lakh urban houses with a major
portion (4 lakh houses) being financed by HUDCO, the Ministry
has also asked HUDCO to finance 6 lakh rural houses under its
ongoing programme. The progress of Two Million Housing Programme
over the last four years, however, has not been upto the targeted
level. For this the State governments and their designated agencies
have to come forward in a big way. The State agencies have to
work on professional lines and take action for removal of all
constraints – legal, administrative and financial. They also need
to improve their cost recovery system to ensure a sustainable
housing programme.
Since the inception
of the Two Million Housing Programme in 1998 and as of Nov.31,
2002 HUDCO had sanctioned loans worth Rs. 1,656.95 crore to enable
construction of 18.30 lakh dwelling units.
The Ministry of Urban
Development and Poverty Alleviation is closely monitoring the
implementation of the National Housing and Habitat Policy to ensure
that each household has a roof over its head by 2010.
.
Urban Sector
Reforms
There can be no two
opinions on the need for urban reforms to ensure a sustainable
and orderly urban development. With a view to speeding up the
process of urban reforms and taking it to a reasonable conclusion,
the Urban Reforms Incentive Fund (URIF) has been conceptualized
in the current year’s budget. While the operationalisation of
the Fund is being finalised, it is proposed to initiate the process
in major areas of urban reforms such as repeal of the Urban Land
Ceiling and Regulation Act at the State level. Rationalisation
of Stamp Duty is also being done in phases to bring it down to
no more than 5 per cent by the end of the Tenth Plan period. Reform
of Rent Control Laws is being initiated to remove rent control
so as to stimulate private investment in rental housing. Information
technology is being introduced to simplify the processes of registration.
Reforms in Property
Tax are also being sought so that it may become a major source
of revenue for the urban local bodies. Double entry system of
accounting is being introduced in urban local bodies besides the
levy of reasonable user charges by the urban local bodies with
the objective that full cost of O & M (Operation & Maintenance)
is collected by the end of the Tenth Plan period.
The response
of various States to carry out the reforms in these areas is quite
encouraging. Many States have already initiated action in this
regard. But few States are prepared to reduce the Stamp Duty to
5 per cent or below, due to feared revenue loss. The States have
been advised to reduce the stamp duty gradually over the Tenth
Plan period and simultaneously bring reforms in the property valuation
system so as to make it more rational and scientific.
With a view to ameliorating
the living conditions of the urban poor, the Swarna Jayanti Shahri
Rojgar Yojana (SJSRY) is being implemented as a Centrally- sponsored
scheme for the benefit of urban poor on an all-India basis. This
programme seeks to provide gainful employment to the urban unemployed
or underemployed poor by encouraging them to set up self employment
ventures by those who have read upto 9th standard and through
provision of wage employment by utilising their labour for construction
of socially and the economically useful public assets. This programme
is funded in the ratio of 75:25 between the Centre and the States.
Since the inception
of the scheme Rs. 499.31 crore was released to the States/UTs
till 2001-02. During 2002-2003, Rs. 100.74 crore has been tentatively
allocated to the States/UTs. Out of this an amount of Rs. 60.37
crore (including Rs. 15 crore sanctioned to the Government of
Gujarat for the benefit of the riot- affected persons) has so
far been released to various States under this Scheme.
Concerted efforts
are being made by the Union Government and the States to provide
basic amenities under various schemes/programmes in order to ameliorate
the living conditions in urban slums. One such programme known
as the National Slum Development Programme (NSDP) was launched
at the national level by the Government in August 1996 to provide
Additional Central Assistance (ACA) to the States for the development
of urban slums. For the year 2002-2003, Rs. 365 crore has been
allocated.
*
Joint Secretary (Housing), Government of India
