11.6.09

Towards a slum free India

With President Pratibha Patil setting an ambitious target of making India slum-free in five years, the housing ministry has launched a new scheme — Rajeev Gandhi Awas Yojana — with an initial budget of Rs 5,000 crore. It aims to construct 10 lakh affordable houses. The scheme, which envisages extending financial support under JNNURM to states “that are willing to assign property rights” to people living in slums, will dovetail existing schemes for affordable housing. Under the scheme, being pushed by housing minister Kumari Selja, the Centre will encourage states to increase the supply of land and construct 10 lakh affordable houses in the first phase by giving a grant of Rs 50,000 for every dwelling unit (EWS/LIG and MIG) or bear 25% of the cost of all civic services proposed in the housing project. “The central allocation will be partly to implement the project as well as an interest subsidy to enable people to actually buy these houses,” an official said. In order to get central funds, projects should have houses ranging from 300 sq ft to 1,200 sq ft plinth area built at affordable rates on land provided by state governments. A minimum of 25% houses of 300 sq ft will be compulsory for the economically weaker section (EWS) in each project to be allotted by the government. The scheme hopes to attract private developers and builders by giving incentives like favourable land-use conversion and permitting extra FAR and coverage area. State housing boards are expected to be partners of the government, and construct and develop projects with funding from institutional sources. To minimise the cost of construction, the scheme aims to come out with layouts which mixes EWS/LIG/MIG with HIG houses and commercial set-ups and cross-subsidising through premium earned on the sale of HIG and commercial spaces. The scheme will ensure the urban poor can access loans under interest subsidy scheme which provides 5% subsidy on loans upto Rs 1 lakh. “Our major focus will be on construction of affordable housing for poor and middleclass people by involving the private sector,” Selja had said. States have been asked to cut stamp duty to a maximum of 2% for LIG houses and nil (0%) for EWS category to reduce the cost of the houses.

No comments: