presentation tries to focus on housing, its role and importance for communities and also how it can be made cost- effective in the background of Pradhan Mantri Awas Yojna

1. Jit Kumar Gupta
Former Director, College of Architecture, IET Bhaddal
jit.kumar1944@gmail.com
Pradhan
Mantri Awas
Yojana- PMAY

2.  Housing is a ‘state subject’ and various state
governments have the power to legislate on
the subject.
 Right to property is not a fundamental right
but only a legal right.

3. • Housing - basic human necessity,:
•Constituting major component of cities
•Occupying largest proportion of urban land
•Involving largest proportion of building component
Major determinant of quality of life
 Provider of basic security
 Provider of identity/dignity to human beings. .
Promoter of large employment-engaging 16% work force of
India
Promoter of industrialization – involving 290 industries
 Major contributor to economy-Real estate sector contributing
9% to India’s GDP
Requires large network of support system- Roads, Water supply,
sewerage, sanitation, healthcare, education, electricity, open
spaces etc
• Housing also known to have:
Physical, Social , economic and environmental connotations.

4. Good housing reflects the general welfare of community.
• bad housing leads to serious consequences-- diseases, immorality etc.
• Good Housing makes people healthy, more happy and more productive
• Bad housing makes people sick and decrease productivity
 Housing has great role and potentiality in promoting:
-- human welfare,
-- social life,
--economic growth
--health of community and
--various other related aspects of human life.
Considering multiple connotations—
- providing housing --major priority for both society / nation.
Government creates exclusive ministry for housing
Allocate funds for housing in their budgets
Create agencies like Housing Boards, HUDCO, National Housing Bank,
Development authorities
Frame Policies and Program for Housing– National Housing Policy
1994, 98, 2007, PMAY, RAY,

5. Housing as a right—included in ;
--The Habitat Agenda (1996),
-- Agenda 21 (1992),
--UN Vancouver Declaration on Human Settlements (1976),
---UN Global Strategy for Shelter to the Year 2000 (1988) .– which
--captures housing rights in following terms:
--the right to adequate housing is universally recognized by
the community of nations
...All nations without exception, have some form of obligation in
the shelter sector as exemplified by;
-- their creation of ministries or housing agencies,
-- by their allocation of funds to the housing sector and
-- by their policies, programmes and projects..
..All citizens of all States,
--poor as they may be,
--have a right to expect their Governments
--to be concerned about their shelter needs, and
--to accept a fundamental obligation to protect and improve ---
houses and neighborhoods',
---rather than damage or destroy them.

6.  Labour intensive- Need large skilled and unskilled manpower
 Mechanically intensive– requires number of machines to construct
 Resource intensive– cement, sand , power, building material etc
 Requires lot of money
 Requires transport network to support
 Requires land for construction- urban land very expensive
 Housing Requires proper planning , designing and construction
 Housing requires ventilation ,natural lighting and best indoor air
quality
 Housing designed as Structurally safe and operationally efficient
 Provide adequate space for living - avoiding over crowding
 Housing needs number of other support systems
 Open spaces- parks, play grounds
 Housing require infrastructures and services-w/s, roads ,
electricity, sewerage, sanitation
 Housing requires– schools, health care, recreation, shopping etc

7.  Immobility --Housing construction --to be at
place where needed unlike food/ clothing
 High Initial Investment- expensive to construct,
maintain and operate- dream for the poor
 Multi- sectoral dimensions--– Housing need
the support of other sectors- transport,
finance, taxation, building industry, population,
land policy etc
 Universality in requirement
 Catering to all sections of Society– HIG, MIG,
LIG, EWS, Slum dwellers, homeless,

8. URBAN
HOUSING
SHORTAGE

9.  Housing shortage --most formidable challenges
urban housing shortage at 24.71 million dwelling units at
the end of 10th Five Year Plan for 66.30 million urban
households.
Group estimated :
--88% shortage in EWS category
-- 11% in LIG whereas
-- MIG/HIG shortage -- merely 0.04 million dwelling
units.
Technical Committee also looked at housing shortage in
all categories and observed that housing shortage in :
- ---99.9% of total EWS households,
--10.5% in LIG
--0.2% in MIG/HIG categories
 Shortage in urban housing-- 26.53 million units by the year 2012.

13.  Delhi 09.60 percent
 Mumbai 10.00 percent
 Kolkata 06.60 percent
 Chennai 03.32 percent
 Jaipur 13.78 percent
 Raipur 11.19 percent
 Bhopal 13.51 percent
 Ahmedabad 12.17 percent
 Surat 14.60 percent
 Rajkot 13.42 percent
 Pune 17.87 percent
 Nashik 15.14 percent
 Bangalore 10.36 percent
 Kochi 13.85 percent
Housing
Shortage
Vacant
Houses

14. POPULATION
&
URBANISATION

16.  India second largest urban system
globally after China
 Indian Population reached
 250 million in 1919
 500 million in 1966 (47 yrs. Later)
 1000 million in 2000 ( 34 yrs. Later)
 1027 million in 2001 (10yrs. Later)
 1210 million in 2011 (10 yrs. Later)
 By 2050 Indian population --- 1600
million
 50% living in Urban India.
 Urban India --285.39 million in 2001
 377 million in 2011.
 Metropolitan Centres --53(2011)
 Greater Mumbai --- 18.37 million --
most populous city (2011).

21.  Rising Population
 Tax incentives,
 Speculation,
 low interest rates,
 Changing demographic structure,
 rapid migration,
 urbanisation,
 better quality of life,
 house as an investment,
 Rising life span
 Division of families-- Changing social fabric
 Family size, divorce rates
 will to own houses,-- housing considered most valuable asset,
 higher rents,
 easy availability of money,
 Supportive housing policies and programs- Government
initiative- Housing for all
 involving private sector
 are the drivers of the housing demand and supply

23. HOUSING
PROBLEMS

24.  Acute Shortage of Housing
 Increasing gap between demand and supply
 Majority of Shortage in EWS/LIG
 High degree of Congestion
 Houseless-ness
 Dilapidation
 Poor Quality of Housing- slums
 Lack of Basic Services- water supply, sewerage,
roads, sanitation, electricity
 Acute problem in metro/large cities
 Limited houses available on rental basis
 High rents

25.  High cost of Urban Housing
 Majority of Housing available in HIG/MIG
 High land cost
 Poverty/poor affordability
 Rapid migration from rural to urban areas
 Inefficient land market
 High degree of speculation
 Multiple ownership of houses
 Single approach to housing
 Wrong selection of beneficiaries

26.  Low priority to EWS/LIG Housing by private
sector
 Low priority to housing sector in past
 Low fiscal allocation to housing sector
 High labour cost
 High Government charges
 Low level of standardization/mechanization of
housing components
 Lack of support from industry to make housing
cost-effective
 Outdated /conventional technologies
 Poor capacity of state housing agencies
 Large amount of paper work/documentation
for loans etc

27. SLUMS
IN
INDIA

28. Slum & Non-Slum Households
India 2011 A compact area of at least 300 population or about
60-70 households of poorly
built congested tenements, in unhygienic environment usually with
inadequate infrastructure and lacking in proper sanitary and drinking water
facilities.
Indicator
Number of
households
(in lakh)
Total (Urban) 789
Slum 137
Non-Slum 652
Number of households (in %)
Slum 17.4
Non-Slum 82.6

29.  In year 2001, India had 523.7 lakh
slum dwellers
 In year 2011, India had 654.9 lakh
slum dwellers
 25.1 percent decadal growth rate
of slum dwellers

30. HOUSING
DELIVERY
MODELS

31. * Consumer-led,
** Incented Private Development,
***Public-Private Partnerships
****Public-Sector Delivery.

32.  Four major housing delivery models used globally:
 Consumer-led,
 Incented private development,
 Public-private partnerships, and
 Public-sector delivery.
 choice of model depends on housing ladder/ capabilities / resources available.
 Consumer-led delivery;-- Most common way families obtain housing
 -- consumers hire contractors to construct homes,
 -- with little knowledge to navigate an opaque/ fragmented construction
industry.
 -- Government can improve - providing information /technical assistance
 — providing information how much materials and labour should cost and
 -- advice - how to write/ enforce contracts /manage timetables
 . Certification—to help consumers making informed choices selecting builders
 In-cented Private Development --In this model,
 private developers receive financial / non-financial incentives to build housing,
 ---which are sold to consumers/--purchased by government for allocation to
citizens
 -- operated as rental property.
 Government determines incentives and
 land which qualifies for such incentives
 also ensures developers fulfil their commitments.ƒ
 agency then sells or / rents the properties

33.  ƒPublic- Private partnership– in this model
 public sector – not passive but an active partner with private developer
 Private developers may be given public land to be developed.
 Finished units sold directly to homeowners by private developer/
 allocated to buyers or renters by the government.
 structure of partnership allocates risks/ affordable housing value
chain-- to the most natural owner.
 PPP model can be used/leverages to involve private sector in affordable
housing

Public- Sector delivery.
 --Development by a public-housing entity
 -- remains important method for delivering affordable housing.
 --Governments hire private-sector contractors
 -- to build on public land
 -- while retaining control and ownership of project.
 -- The agency then sells/ rents properties-DDA/PUDA/HUDA/HOUSING
BOARDS

34. Pradhan Mantri
Awas Yojna-
Housing for All
(Urban)-2015

35.  Scope---Housing for All” Mission for urban area
 implementation -- during 2015-2022
 -- For providing assistance for houses to eligible families
 -- implemented as Centrally Sponsored Scheme (CSS)
 --Eligibility--family not to own a pucca house in any part of India
 -- States/Uts-- to decide a cut-off date for eligibility
 Mission effective from 17.06.2015 up to 31.03.2022.
 2. Coverage and Duration
 All 4041 statutory towns --Census 2011 -with focus on 500 Class I
cities covered in three phases as follows:
• Phase I (April 2015 - March 2017) -- to cover 100 Cities selected
from States/UTs
• Phase II (April 2017 - March 2019) to cover additional 200 Cities
• Phase III (April 2019 - March 2022) to cover all other remaining
Cities
Flexibility regarding inclusion of additional cities in earlier phases

37. 7/28/2018 37
Housing for All – Four Verticals
1
2
3
4
Subsidy for beneficiary-led
individual house
construction
For individuals of EWS category
requiring individual house
-State to prepare a separate
project for such beneficiaries
-No isolated/ splintered
beneficiary to be covered
"In situ" Slum
Redevelopment
Affordable Housing
through
Credit Linked Subsidy
Affordable Housing in
Partnership
With private or public sector,
including Parastatal
Central Assistance per EWS house in
Affordable Housing Projects
1, 3 & 4 implemented
through State & UTs
Using land as a resource
With private participation
Extra FSI/TDR to make projects financially viable

38.  - important component of PMAY for slum rehabilitation- supply side
 leverages locked potential of land under slums
 --for providing houses to eligible slum dwellers
 Slums on Central/State Government /ULB land, Private
Land- taken up for “in-situ” redevelopment
 Slums so redeveloped to be compulsorily de-notified.
 Private partner for Slum Redevelopment selected through open
bidding process
 When required, provide ;--additional Floor Area Ratio (FAR)/Floor
Space Index (FSI)/Transferable Development Rights (TDR)
 --for making slum redevelopment projects financially viable.
 Slum rehabilitation grant of Rs. 1 lakh per house, on an average
 States/UTs have flexibility to deploy central grant for other slums
redevelopment with private participation, except slums on private
land.
 Area to be transferred to be precisely determined
 Excess area retained for housing other slum dwellers
 Project to have two components-
 -- Rehabilitation and
 -- Free sale component


39. “In-situ” redevelopment of slums on private owned lands
for providing houses to eligible slum dwellers
 -- incentivised by State Governments/UTs or ULBs by
giving additional --FSI/FAR or TDR to land owner
 Central assistance cannot be used in such cases
 Eligibility, cut off dates, beneficiary contribution, system of
allotment, etc. to be decided by State
 A viable project to be prepared with REHAB component and
FREE SALE component
 Consultations to be held with beneficiaries
 Transit accommodation to be provided
 FREE SALE component to be linked to project completion
 Govt. agency to make allotments
 Create a Single project account
 Approval process to be streamlined by constituting a single
authority for planning, prescribing norms and approvals.

41.  Credit linked subsidy component
 - Demand side intervention
 - to expand institutional credit flow to urban poor
 -for LIG/EWS house acquisition/construction
 Beneficiaries seeking housing loans from Banks/ HFC/
other institutions would be eligible
 --for interest subsidy @ 6.5 % for a tenure of 15 years /
during tenure of loan- whichever is lower.
 Net Present Value (NPV) of interest subsidy calculated
at a discount rate of 9 %.
 -subsidy available for loan amounts upto Rs 6 lakhs
 - Interest subsidy credited to loan account of
beneficiary
 -- leading to reduced effective housing loan / Equated
Monthly Instalment (EMI)
 -- Carpet area constructed/ enhanced should be upto
30 / 60 square metres for EWS and LIG,
 (HUDCO) and National Housing Bank (NHB) identifid as
Central Nodal Agencies (CNAs)

43.  3rd mission component -- supply side intervention to increase EWS
housing
 By Providing financial assistance by Govt
 through its agencies /in partnership with private sector
 Central Assistance @ Rs.1.5 Lakh per EWS house would be available
 States/UTs to decide on;
 - sale price of EWS houses /per square meter of carpet area-- to
make them affordable
 - may extend other concessions- State subsidy, land at affordable
cost, stamp duty exemption etc.
 Project can be a mix of houses for different categories
 --Minimum 35% of houses must be EWS category
--- single project of at least 250 houses / reduced houses
 -- allotment made to identified eligible beneficiaries
 beneficiaries should be part of HFAPoA
 Preference given to physically handicapped persons, senior
citizens, Scheduled Castes, Scheduled Tribes, Other Backward
Classes, minority, single women, transgender / other weaker and
vulnerable sections of society
 families with disability/ senior citizens allotted house preferably on
the ground floor or lower floors.
.

45.  Fourth component of mission–
 -- to assist individual eligible EWS families unable to take
advantage of other components to
 --either construct new houses or
 -- enhance existing houses on their own
 -- avail central assistance of Rs. 1.50 lakhs
 -- must own land
 -- residing either within/outside slums
 - when in slums not covered- has a Kutcha or Semi-Pucca house.
 Urban Local Bodies
 -- to validate information given by beneficiary
 -- building plan for the house submitted
 ULBs to prepare an integrated city wide housing project
 -- in accordance with City Development Plan (CDP)
 -- construction of houses to be as per planning norms
 -- scheme implemented in an integrated manner
 -- Individual applicants for assistance not to be considered.

46.  To ensure- sufficient funds for construction available to
beneficiary - including own contribution, Central/ State
Government assistance etc.
 GoI assistance released into bank account of
beneficiary when balance cost of construction tied up
 Financial assistance released in 3-4 instalments
 --depending on progress of construction of house.
 Beneficiary to start construction --using his own funds
 Funds released in proportion to construction
 last instalment of Rs. 30,000/- released only after
completion of house.
 States to develop a system to monitor—
 -- Progress of houses tracked through geo-tagged
photographs - each house to be monitored effectively.

48.  Infrastructure status given to Affordable Housing
--to increase funding opportunities, loans,
reduced risk weightage, better transparency and
increased supply.
 100 percent deduction of profits from housing
projects providing housing units upto 30 / 60
sq.m. carpet area -- to boost supply.
 Refinancing of housing loans worth Rs.20,000 cr.
by the NHB-- likely to increase credit access to
EWS and LIG to make housing more affordable.
 Increased allocation of Rs. 23,000 cr to PMAY to
enhance housing supply to low income population.

49.  PPP models already operational in
country;
◦ Gujarat Model
◦ Bengal Model
◦ Punjab Model
◦ Haryana Model
◦ Rajasthan Model
◦ Mumbai Model- Slum Redevelopment

50. Land Pooling & Redistribution Schemes and Plot
Reconstitution Schemes
• -- Involving landowners -as coparceners in development
process.
• ---No compulsory acquisition of land
•-- Local authority not to incur any financial liability.
• Generates enough;
•-- land for affordable housing/Public purposes
•--Resources for infrastructure development
• --Brings large peri-urban potential land into land market.
•-- keeps land price stable
•--makes land market efficient. .
• P.R. Scheme successfully employed in Maharashtra,
Gujarat, Tamil Nadu, Punjab
• LPR Scheme used in Asian countries--Japan, Korea Taiwan.

51. 
 West Bengal
 -- Housing Board and Ambuja Cement/Pearless etc
 --created JVs for providing housing for poor
 - Adopting project based approach
 -- involving HIG, MIG, LIG, EWS, Commercial component
 -- Using mechanism of cross subsidization LIG/EWS
 -- by HIG/MIG housing and Commercial Component
 - Land provided by Housing Board and
 -- resources provided by builders
 - majority of stakes with Private builder-51%-- to manage project
 --PPP helped
 -- private builders get past Urban Land Ceiling Act
 -- facilitated smoother conversion of agricultural land for real estate use
 -- allowed government to leverage land available with it
 --helped release large parcels of land for real estate development
 -- KMDA with DLF Ltd-- to build an industrial township-- in over 4,840
acres,-- expected to house over 600,000 people.
 --Public-private projects essentially divided into three parts--,
catering to lower, middle and high income groups
 -- housing for low-income groups offered at subsidized rates
 --pricing of houses for middle-incomes set at no-profit-no-loss
levels
 -- builders make profits in high-income segment of projects

52. • Haryana Pioneer state in country to
leverage private development
• Haryana involved
•-- reputed builders
•-- to buy land from farmers
•-- plan and develop it
•-- to create large housing stock
•-- through Plotted/flatted development
•-- by licensing colonies/Group Housing
• Private developers required to provide;
--20% of total plots for EWS category,
--- to be disposed off
-- to eligible persons
-- at a price fixed by State government.

53. •Punjab involved;
•-- builders/colonisers/developers
•-- by permitting to buy land from farmers
•-- plan and develop
•-- to create housing stock
•-- through Plotted/flatted development
•-- by licensing of colonies/Group Housing
• Private developers required to provide;
--10% of total residential area
--for the EWS plots in case area of colony 40 Hectare or more
--10% apartments for EWS category
--in case number of apartment is 100
--- to be disposed off
-- to the eligible persons
-- at a price fixed by State government.
State also used the concept of Town Planning Scheme
-- to pool the land of private owners
-- evolving layout plan of area
-Earmarked area for roads, open spaces, residential, commercial
--- Retained the area for roads/open spaces with local body
--- returning rest to landowner for selling plots
--- no charges levied
--no compensation paid for land up to 25%,
- with compensation upto35%
-- Affordable Housing policy already in place

54. 60% of Mumbai population lives in slums
-Slum Rehabilitation Authority set up in 1995
-- Slum land used as resource by authority
-- Developer provides free homes to eligible slum dwellers
-structure existing before 1995 eligible for 269 sft flat
-Developers submit proposal to Slum Rehabilitation
Authority
-Slum rehabilitated either in-situ or otherwise --if land
required for urban infrastructure
--Incentive FSI/TDR given to developer
---Area available surplus after resettlement can be sold by
developer commercially
---Profit from sale of land in open market used for cross-
subsidizing free housing
--- Commercial viability of Slum Redevelopment Scheme
varies-- from project to project depending on location
-- 400 projects were involved under the scheme.

60.  Two broad Approaches— Sourcing additional land & Optimum
Utilisation of available land
 Re--densification– Proposed model for -- Chandigarh
 Using Terraces for Housing– New York Model
 Promoting flatted development against plotted development-
----- Singapore Model
 Cross- subsidisation– -- Hong Kong Model
 Land Exchange Model- -- Punjab Model
 OUVGL- Punjab Model
 Taxing Vacant Urban Land- Punjab Model
 Licensing Private Colonies– Haryana Model
 Land Pooling and Land Distribution Model- Maharashtra/ Gujarat
 Public &Private partnership-- ---West Bengal
 TDR& AR- - Mumbai Model
 Slum Rehabilitation----------- Mumbai Model
 Reserving land for EWS Housing – Gujarat/Punjab /Haryana

61. WAY
FORWARD

62.  Identifying constraints on demand side and supply side
 -- find out strategies to overcome them
 ---adopting collaborative approach to promote synergies
 Demand side constraints removal requires
- Identifying right beneficiaries.
- Innovating micro-mortgage financing mechanism to ensure a larger
reach to resources
 Supply side constraints removal requires
i) Providing incentives for constructing affordable housing on mass scale
ii) Rationalizing building bye-laws / zoning regulations
iii) Providing higher density extra-FSI
Iv ) Streamlining land records – to improve urban planning / optimization of land
utilization.
v) Making land market more effective and efficient by:
- computerization of land records
- creating a urban land data base using GIS
- making data base of all urban lands
- creating efficient and effective dispute re-dressal mechanism
-

63.  Developers believe that
 if Government removes roadblocks- segment would
move to fast track.
 Possible to have a profitable proposition in affordable
housing if:
i. Project and cost management made very strong.
ii. Improved/ state of art technologies used
iii Timeframe for construction reduced
iv Economies of scale used
iv Dwelling unit designed with care
v. Housing units/components standardized
vi. developing standard product
vii. Government policies rationalised
viii Off the table developed Land with approvals made
available


64.  Creating JV or PPP with government agencies-- for land
where approvals are already in place.
-Shortening period of construction-- limited to 12 months --
phasing project.
Lowering cost of construction below Rs.1000/- per sq. ft
Considering affordable housing-- as a volume game and not
profit game
 ensure 100% sale within a short span
 High sale/ volume of project.
 Involving enablers, providers and executor to work in
a united /single platform
Eliminating speculator investors

65.  Successful Housing Projects for Affordable Housing have adopted
following model:
- Project Area to be in the range of 15-35 Acs
- Number of dwelling units 1500-3500
- Location not beyond 20-25 kms from city centre for metro cities
- Cost Reduction achieved by adopting limited options of units of
- 1RK, 1BHK with few 2BHK
- Area- 250-350 sq. ft. for 1RK & 400-500 sq ft for 1BHK
- Low construction cost- low rise G+3 or G+4 walk up apartments
- Shorter Period of construction
- -- Low rise structure
- -- adopting technologies involving Aluminum formwork
- --Building Information Modeling to complete project within 18-24m
- --Providing Basic Amenities including--
- -- landscaped gardens
- social amenities including
----- school
- -- shopping centre
--- based on size and scale of project.

66.  Making land available at reasonable
prices
 Ensuring equity and affordability
 Bringing modern technology in housing
 Ensuring Legal and institutional reform
 Ensuring adequate supply to combat
demand
 Adopting Low rise high density
developments

67. Thanks for
your time and
patience