Reform Measures and Policy Initiatives - Ministry of Housing ...

CHAPTER – IIIREFORM MEASURES AND POLICY INITIATIVES3.1 SWARNA JAYANTI SHAHARI ROZGAR YOJANA(SJSRY)/ NATIONAL URBAN LIVELIHOODSMISSION/ (NULM)With a view to provide gainful employment to the urbanunemployed and underemployed through encouraging thesetting up of self-employment ventures or provision of wageemployment, a new urban poverty alleviation programme,namely, Swarna Jayanti Shahari Rozgar Yojana (SJSRY)was launched by the Government of India on 01.12.1997.This scheme subsumed the earlier three urban povertyalleviation programmes, namely Urban Basic Services forthe Poor (UBSP), Nehru Rozgar Yojana (NRY) and PrimeMinister‟s Integrated Urban Poverty Eradication Programme(PMIUPEP).3.1.2 An independent evaluation of SJSRY was carried out by theMinistry of Housing & Urban Poverty Alleviation in 2006 toassess the impact of the scheme in improving the conditionsof the urban poor. Based on the study findings, lessons learntin implementation and feedback received from StateGovernments, Urban Local Bodies and other stakeholders, arevision of the Guidelines of the SJSRY scheme has beenmade, with effect from the year 2009-2010.3.1.3 The main objectives of the revamped SJSRY scheme are:I. Addressing urban poverty alleviation through gainfulemployment to the urban unemployed or underemployedpoor by encouraging them to set up self-employmentventures (individual or group), with support for theirsustainability; or undertake wage employment;II. Supporting skill development and training programmes toenable the urban poor have access to employmentopportunities opened up by the market or undertake selfemployment;andIII. Empowering the community to tackle the issues of urbanpoverty through suitable self-managed community structureslike Neighbourhood Groups (NHGs), NeighbourhoodCommittees (NHC), Community Development Society(CDS), etc.3.1.4 NATIONAL URBAN LIVELIHOODS MISSION(NULM)3.1.4.1 SJSRY scheme will be subsumed under NULM from2012-2013I. The urban population of India increased from 286 Million in2001 to 377 Million in 2011. 93 million urban residents are-: 43 :-

estimated to be slum-dwellers. The number of urban poor inIndia was estimated to be 81 Million in 2004-05 based onNSSO data. The figure indicates the percentage of urbanpoor at 25.7%. What is disturbing is the fact that in spite ofthe impressive growth of the Indian economy, the number ofurban poor has gone up by 4 Million between 1993-94 and2004-05.II. Urban India contributes to about 2/3 rd of the country‟s GrossDomestic Product (GDP). However, country-wide, morethan 3/4 th of the urban population are engaged in theinformal sector, with lack of education and proper skills,without any social security safety net and with precariousworking conditions. The number of the urban poor is solarge that even if a small increase in their productivity inwage and self-employment will lead to a huge augmentationof economic growth while contributing significantly toinclusion. Skill development will be the key to theenhancement in productivity of this segment. Selfemploymentwill also need to be addressed as the bulk of theurban poor are engaged in the urban informal sector and withincreasing urbanisation, there will be increasing jobopportunities in the informal sector.III.Prime Minister‟s National Council on Skills Developmenthas set a target of skilling of 500 million people in India by2022, mainly by fostering public-private initiatives in skilldevelopment. A significant part of this target will have to be-: 44 :-IV.linked to the newly emerging job opportunities in thegrowing urban economies. A large chunk people at thebottom of the pyramid, especially the urban poor and thelower income groups will need to be specially targeted.Based on the learning from the Swarna Jayanti ShahariRozgar Yojana, being implemented from 1997 andexperience gained in the implementation of National RuralLivelihoods Mission (NRLM), the Ministry of Housing &Urban Poverty Alleviation has accordingly proposed„National Urban Livelihoods Mission (NULM)‟ to replacethe ongoing scheme of SJSRY in the 12 th Plan. Thecomponents proposed for NULM are:A. Social Mobilisation and Institutional Development(SM&ID) with sub-components:i. Building Community Institutions - SHGs and theirFederations;ii.iii.Universal Financial Inclusion; andRevolving Fund Support to SHGs and their Federations.B. Capacity Building and Training (CB&T) with subcomponents:i. Technical Support at National, State, District and CityLevels;

ii.iii.Service Centres/Aadhar Kendras at City Level; andTraining and Other Capacity Building SupportC. Employment through Skills Training and Placement(EST&P)i. Skills Training for Self-Employment;ii.iii.Skills Training & Placement for Wage Employment;Innovative & Special ProjectsD. Self-employment Programme (SEP):i. Individual Enterprises (SEP-I);ii.iii.Group Enterprises (SEP-G); andTechnology, Marketing and Other Support.V. In consonance with the targets set forth by the PM‟s NationalCouncil on Skill Development, NULM proposes to cover atarget of 5 Million under Skills Training & Placement, 1Million under Self-Employment - Individual and Group and1 Million under Self-Help Groups (SHGs), with appropriatetechnology, marketing, capacity building and other support,such as through Micro Business Centres at cluster level andAadhar Kendra/Service Centre at the city level.The total fund requirement under NULM for the 12th Five YearPlan is proposed to be Rs. 20,000 crores as follows:Sl No. Financial Component Allocationof CentralFunds1. CommunityMobilizationInstitutionalDevelopmentandAllocation for 12 thPlan (` incrore)10% 20002. Capacity Building & 20% 4000Training3. Employment throughSkills Training andPlacement (Centralcomponent 10%, StateComponent 10%, 40% 8000District/CityComponent 15%,Special/InnovativeProjects 5%)4. Self-EmploymentProgramme -Individual & Group25% 5000Enterprises5. Administrative and1000Other Expenses 5%Total 100% 20000-: 45 :-

3.2.1 INTEGRATED LOW COST SANITATION (ILCS)The "Integrated Low Cost Sanitation" Scheme basically aimat conversion of individual dry latrine into pour flush latrinethereby liberating manual scavengers from the age old,obnoxious practice of manually carrying night soil.3.2.2 ILCS Scheme was initially started in 1980-81 through theMinistry of Home Affairs and later through Ministry ofSocial Justice and Empowerment. The scheme wastransferred in 1989-90 to Ministry of Urban Developmentand Poverty Alleviation and from 2003-04 onwards toMinistry of UEPA/HUPA which revised the guidelines w.e.f.17 th January 2008.3.2.3 Salient features:The Salient features of the revised guidelines of the Schemeare as follows:I. The objective of the Scheme is to convert/construct low costsanitation units through sanitary two pit pour flush latrineswith superstructures and appropriate variations to suit localconditions (area specific latrines) and construct new latrineswhere EWS Household have no latrines.II.III.The scheme is on „All Town‟ coverage basis irrespective ofthe population criteria. The Scheme is limited to EWShouseholds only.Targets will be fixed initially in the ratio of 75% forconversion of dry latrines with reference to 6 lacs dry-: 46 :-IV.latrines reported by the States so far and 25% for provisionof pour flush latrines to beneficiaries having no latrines.The scheme will be funded in the following manner:-Central Subsidy 75%, State Subsidy 15% and beneficiaryshare10%.V. The upper ceiling cost of Rs. 10,000/- is provided for thecomplete unit of a two pit pour flush individual latrine withsuperstructure (excluding States falling in difficult / hillyareas). For the States falling in the category of difficult andhilly areas, 25% extra cost is provided for each two pit pourflush latrine. The Scheme is limited to EWS householdsonly and does not entail a loan component. The scheme willbe implemented by Ministry of Housing & Urban PovertyAlleviation directly.VI. The States should select NGOs having adequate experiencein this field who will be funded to a maximum extent of15% over and above the total project cost to be borne by theCentre and States based on the ratio of 5:1 at different stagesof implementation.VII.1% of total central allocation will be retained by theMinistry every year, to be utilized for MIS, MonitoringSystem, Capacity Building and IEC components.

3.2.4 Present Position:The mandate of the scheme was conversion of dry latrineswhich has been fully achieved with total sanction of projectsfor conversion of all dry latrines reported by StateGovernments. Government of India had sanctioned projectsfor conversion of 2,51,963 dry latrines and it has beenconfirmed by the States that the task has been completed andthey are dry latrines free.Out of the funds available for construction of sanitarylatrines to Economically Weaker Sections (EWS)households, who do not have any Sanction for newconstruction has been given to 1,70,337 units out of which15,246 has been completed 1,55,091 are stated to be inprogress.Since the objective for which the scheme has beenpromulgated, is completed, it is proposed to seek only carryover budget to meet the committed liabilities for sanctionedprojects. In order to provide for committed liabilities foralready sanctioned projects, it is proposed to seek a carryover budget of Rs. 25.00 crore during the next FinancialYear 2012-13.3.3.1 NATIONAL SCHEME FOR SUPPORT TO STREETVENDORSThe Ministry of Housing & Urban poverty Alleviationproposes to launch a separate scheme for urban street-: 47 :-vendors in the 12th Five year plan to provide them supportand incentivize implementation of National Policy on UrbanStreet Vendors and adoption of a Central law. The proposedscheme is to cover components like support for conduct ofsurvey of Street vendors & vending space, registration,database maintenance, issue of identity card, demarcation ofvending zones etc; development of vendors markets;upgradation of the quality of street food; microfinance tostreet vendors; support for skill training etc.3.4.1 NATIONAL PROGRAMME FOR URBAN HOMELESS(NPUH)Based on National Advisory Council (NAC)‟srecommendations, this Ministry has prepared a conceptpaper on National Programme for Urban Homeless (NPUH)to build permanent shelters for the urban homeless people.These homeless shelters are proposed to be all weather and24 hours shelters with basic amenities for a life with dignity.3.4.2 The salient features of the proposed scheme are as under:Composite shelters with toilets, bathrooms, communitykitchens and other spaces for education, training, health careand entertainment as per the actual requirements. These willbe in the nature of dormitories/hall with plain floors to beused for sleeping at night as well as rest during the day time.The scheme encourages separate enclosures for families,working men and women and their dependent children.

The State Governments through its implementing agenciesincluding Urban Local Bodies will bring in land as theircontribution.The State Governments or any agency identified by themwill commit to fund operation and maintenance costs.Government of India would fund 75% of the entire cost ofconstruction of the shelter for the houseless at the currentCentral PWD rates applicable to the region where theconstruction is proposed. 25% would be State contribution.The selection of the viable projects, design, projectimplementation and monitoring at the State level should bedone by a committee of State Secretaries consisting ofSecretaries of Urban Development, Housing, Social Welfareand Health Departments and representative of State PWD.The shelters must be in sufficient numbers to meet the needin the ratio of about one per lakh of population, in everymajor urban centre with a capacity of 100 persons or as perthe local needs.The proposed Shelter should provide, for basic facilities suchas beds and bedding, toilets, potable drinking water,community kitchens and also provide, as far as feasible,lockers, first aid, primary health, de-addiction and recreationfacilities.The shelters should be permanent, running through out theyear; and open round the clock, because many homelesspersons find work in the nights.A space of 5 sq. meters per person is being proposed forhomeless shelters, at the minimum.The Community Kitchens may be run by the State agenciesor any private agencies for provision of healthy and hygienicfood at affordable rates to the poor. Voluntary participationof the beneficiaries should be encouraged to bring in a senseof ownership.3.4.3 Financial implications:The financial implications of the scheme would beaccurately worked out once the actual details of the urbanhouseless are available through the census of India, 2011data, keeping in mind the current CPWD rates. However arough estimate shows that: as per the census 2001 data, thereare nearly 7.7 lakh urban houseless population. Initialestimates show that the total cost for construction of requiredshelters is approximately, Rs. 5180.175 crores. Adding atleast 1% of the cost of administrative and miscellaneousexpenses, the total scheme would cost Rs. 5231.976 crores orapproximately Rs. 5230 crores at current rates. At the ratioof 75% of the cost being Central Subsidy the plan outlay forthe scheme during the 12 th plan period would be Rs. 3922.5-: 48 :-

crores or Rs. 3923 crores. This would work out to nearly Rs.785 crores per annum during the 12 th Five Year Plan period.The concept paper on the scheme has been sent to thePlanning Commission.3.5 URBAN STATISTICS FOR HR AND ASSESSMENTSCHEME (USHA)3.5.1 A new Central Sector Scheme „USHA‟ was approved by theEFC under the chairmanship of Secretary (HUPA) in itsmeeting held on 22 nd August, 2007. The scheme was a partof NBO activities during the 10 th Five Year Plan. EFC underthe chairmanship of Secretary (HUPA) approved inclusionof the scheme in the 11 th Five Year Plan based ondiscussions with the Planning Commission which agreed toenhance budget for 2007-08 considering the need fordeveloping a national statistical system on buildingconstruction, housing, slums and urban poverty and thechallenges of data base and MIS support for JNNURM. TheScheme is proposed to be continued in the 12 th five year Planas well.3.6 INTEREST SUBSIDY SCHEME FOR HOUSING THEURBAN POOR (ISSHUP)3.6.1 In the National Urban Housing & Habitat Policy, 2007 ademand driven approach, ranging from subsidy basedhousing schemes to cost recovery-cum-subsidy schemes forhousing through a pro-active financial policy includingmicro-finance and related self–help group programmes, hasbeen advocated. The policy seeks to devise innovativehousing finance schemes for targeting the two segments –EWS & LIG with suitable support from Central and StateGovernments to increase flow of finance for catering tohousing needs of these segments.I. To achieve the said objective, the Government had approvedan Interest Subsidy Scheme for Housing the Urban Poor(ISHUP) to be implemented in the 11 th Five Year Plan as onpilot basis. The interest subsidy scheme was aimed tosupplement the efforts of the Government through theJNNURM to comprehensively address the housing shortage.The interest subsidy on housing loans for the urban poor willenhance affordability besides leveraging funds from themarket for lower segments. Under this scheme, a subsidy of5 per cent per annum will be given for loans of Rs 100,000/-taken during the 11th Plan. The loan repayment periodwould be 15-20 years.II. The Interest Subsidy Scheme for Housing the Urban Poor(ISHUP) was launched w.e.f. 26/12/2008 with a view to-: 49 :-

III.enable access of urban poor to the long term institutionalfinance. The Scheme seeks to provide interest subsidy toEconomically Weaker Section (EWS) (income uptoRs.5000/-) and Low Income Group (LIG) (income from Rs.5001 – Rs. 10000/) beneficiaries on availing loans from theBanks /Housing Finance Companies (HFCs) to enhanceaffordability of these income segments. Under this scheme,an interest subsidy of 5 percent per annum will be givenupfront on loans up to Rs. 1,00,000/- taken from Banks /Housing Finance Companies (HFCs) during 11th Five YearPlan. The Loan repayment Period would be 15-20 years. Thetotal plan outlay for the scheme was Rs.1,100crores. TheScheme was to be implemented as a pilot initially, and wasto be reviewed after two years.Cumulatively, till December,2011 only 8,734 beneficiariesin Andhra Pradesh, Chhattisgarh, Karnataka, MadhyaPradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradeshand Kerala have been covered under the Scheme and totalNPV of interest subsidy of Rs. 7.57 crore has been released.Since June 2011, ISHUP has been dovetailed with theGovernment's flagship Mission of Rajiv AwasYojana (RAY)for a Slum free India. In order to reach out to the targetedbeneficiariesMinistry is in the process of formulaitngInterest Subsidy Scheme for Housing the Urban Poor(ISHUP) into revised forms to be implemented in the 12thFive Year Plan (2012-17) viz.,3.6.2 REVISED INTEREST SIBSIDY SCHEME FORHOUSING THE URBAN POOR (ISHUP)I REVISED INTEREST SIBSIDY SCHEME FORHOUSING THE URBAN POOR (ISHUP) : Under thisscheme existing loans upto Rs. 1.0 lakh with an interestsubsidy of 5% would be provided to JNNURM & RAYbeneficiaries along with capital subsidy as is being extendedto Indira Awas Yojana(IAY) beneficiaries under DifferentialRate of Interest (DRI) scheme.Further, it is proposed to provide loans upto Rs. 1.0 lakh forextension of existing houses to overcome the acute shortageof housing due to congestion factor and conversion of semipuccahouses into pucca houses.II RAJIV RIN YOJANA: For those Economically WeakerSections (EWS) /Low Income Group (LIG) households, whoare not beneficiaries under RAY or JNNURM, it is proposedto provide loans to the extent of Rs. 2.0 lakh & Rs. 4.0 lakh-: 50 :-

in order to realistically finance the increasing cost of housingin urban areas.A sum of Rs. 5,000 crore is proposed to be earmarked out ofACA funds allocated to RAY to finance these two streams ofInterest Subsidy Scheme for Housing the Urban Poor(ISHUP) viz. Revised ISHUP & RRY.IIIIISystem of Committee Meetings to review the ongoing workon regular basis and to establish a structured communicationsystem with the officers of the Council.On the pursuance of the Ministry, the legal documents of theCouncil such as Bye-laws, delegation of powers andrecruitment-cum-promotion rules have been amended in thelight of the recommendations of the 6 th Pay Commission.3.7 BUILDING MATERIALS & TECHNOLOGYPROMOTION COUNCIL (BMTPC)3.7.1 BMTPC has initiated the following measures forstrengthening its intermediate outputs:IWith the opening of economy and consequent risinginvestments in industrial sector, building materials andconstruction industry has also gradually attractedinvestments both from Indian and foreign entrepreneurshigher than before during recent years. In keeping with themandate of BMTPC to stimulate and facilitate action atvarious levels, the Council has been learning from the risingdemands on its tasks from different segments of users. Suchtasks, interalia, include domestic and foreign investment,stimulating information flows and developing supportfunctions and improving infrastructure to meet the changingneeds of housing and building construction sector.3.8 INSTITUTIONAL DEVELOPMENT FOR INCLUSIVEURBAN GOVERNANCE3.8.1 This Scheme will extend support for establishment ofNational and State Institutes to promote inclusive urbangovernance through comprehensive programmes ofdegree/diploma in urban management/trainingprogrammes/handholding/research and IEC activities. Thescheme proposed is to have a national institute as a thinktank to Central Ministries and States on the paradigm ofinclusive governance, 5 Indian Institutes of Urbanmanagement as recommended by the High Power ExpertCommittee (HPEC) in collaboration with States and StateInstitutes.-: 51 :-

3.9 CAPACITY BUILDING FOR URBANDEVELOPMENT PROJECT (WORLD BANKASSISTANCE)3.9.1 The Capacity Building for Urban Development Projectsupported through World Bank aims to help the Governmentaddress the major constraints to urban development andspecifically focuses on the capacity building requirementsfor successful urban management and poverty reduction. Theproject will provide support for capacity building at thenational and local levels in the areas of urban managementand poverty monitoring and alleviation. The project‟sdevelopment objective is that: selected ULBs will haveimproved their systems and skills for urban management andurban poverty reduction.The project will be implemented from November 1, 2011 toJune 30, 2016. Project has two components:I. Capacity Building for Strengthened Urban ManagementII. Capacity Building for Effective Urban PovertyMonitoring and AlleviationMoUD and MoHUPA will be the implementing agenciesunder Component I and II respectively. The total fundsavailable under component one is USD 40 million andcomponent two is USD 20 million.3.9.2 Intended Outputs-: 52 :-Capacity Building for Effective Urban PovertyMonitoring and Alleviation component will support inbuilding capacities at the central and local levels for policyformulation, implementation and monitoring, in the area ofurban poverty alleviation with special focus on building-upinformation systems, fostering knowledge and informationexchange and learning, including designing andinstitutionalizing mechanisms to promote communityparticipation in implementing urban poverty alleviationprograms. The project will target 20 ULBs for acomprehensive package of assistance on urban managementand poverty reduction. Following will be the specificoutputs under this component:Challenge Fund for Urban Poverty Alleviation. Support willbe provided to ULBs working on urban poverty alleviationthrough recognizing and awarding innovative practices inthis area; and also who are interested in adopting and scalingup one or more identified good practice.Creation of a Practitioners Network Support will be providedby constituting a network of practitioners with the objectiveof promoting information sharing and capacity building. Thenetwork will also facilitate the dissemination and discussionof best practices identified and/or developed through theChallenge Fund.Strengthening a National level Training Institute Supportwill be provided to a National Institute by strengthening it to

e a premier apex training institute with focus on buildingcapacities in urban poverty alleviation. Institutionalizing Community Development Structures.Support will be provided to cities to institutionalisecommunity development structures so as to ensurecommunity engagement in planning, implementation, andoperation and management of urban poverty alleviationprograms. Strengthening of MOHUPA: Support policy analysis anddevelopment as well as build a comprehensive M&E systemin MOHUPA in coordination with ULBs.hierarchical linkage of the three levels is shown in theschematic below:Implementation Arrangements at MoHUPALevel I ProjectChaired by SecretaryManagement MoHUPABoardLevel II Project Steering Chaired by Joint SecretaryCommittee (RAY)/PD CBUD ProjectMoHUPALevel ProjectA National level commonIII Monitoring Unit PMU serving both MoUD3.9.3 Implementation arrangementsand MoHUPA viarespective PMB and PSCThe project design envisages a three-tier structure forLevel 4 Selected 20 ULBsoversight. The project will be implemented through astructure of Programme Management Boards (PMBs),chaired by the Secretary of MOHUPA, and also comprisingrepresentatives from the Department of Economic Affairs(DEA) and the Planning Commission. PMB will provide3.9.4 Major Expected Outcomesoverall oversight and guidance, as well as approve majorULB‟s provided support under replication/up-scaling ofwork plans and activities. PMB will be supported by apoverty alleviation programmes demonstrate effectiveProject Steering Committee (PSC), which will be chaired byimpact of investmentsthe Joint Secretary and will also have representation from the• Focus on institutional and organisational strengtheningDEA and the Planning Commission. PSC will in turn bethrough knowledge sharing as well as the development ofsupported by the single national level PMU, which isindividual competencies and skills.established under the project for providing technical andmanagerial support during project implementation. The-: 53 :-

• Cities start engaging with communities in planning andimplementation of Urban Poverty Alleviation programs.3.9.5 FundingThe total support under this project is of 20 million USD,which is approx. Rs. 100 crores. As activities under theproject have commenced only from November 2011, thebudget till March 2012 is Rs. 50 lakh.3.10 SUPPORT TO NATIONAL POLICIES FOR URBANPOVERTY REDUCTION (GOI-DFID PROJECT)Committee (PSC) was held on 11 th August 2011. Theoverall Goal of the project is „A sustained reduction inurban poverty’. The following are the expected outputs ofthe project:Output 1: Institutional co-ordination between M/o UD andM/o HUPA strengthened.Output 2: Policy and Programme Support Unit (PPSU) inMo/ HUPA developing and disseminating policy on urbanpoverty reduction and pro-poor governance, learning fromState experiences.3.10.1 In a context of economic growth accompanied by on-goingurbanisation, this project seeks to support the Government ofIndia‟s (GoI) response to the twin challenges of increasingurban poverty and weak local government. Specifically itwill support more effective, poverty-focused implementationof the Rajiv Awas Yojana (RAY), Jawaharlal NehruNational Urban Renewal Mission (JNNURM) and theSwarna Jayanti Shahari Rozgar Yojana (SJSRY).The agreement for the GoI-DFID Project, Support toNational Policies for Urban Poverty Reduction (SNPUPR)was signed in April 2010 between DEA, M/o Finance andDFID. The project was initiated from July 2010 and staff putin place by December 2010. The first meeting of theProgramme Management Board (PMB) was held on 1 stDecember 2010 and the first meeting of the Project Steering-: 54 :-Output 3: A Network of Resource Centres is created whichsupports pro-poor urban policy development and programmeimplementation.Output 4: Capacities of selected State and city/towngovernments are strengthened to effectively implement propoorreforms and programmes.The project has been supporting the Ministry in theimplementation of its programme by providing technicalsupport in formulation of technical guidelines and capacitybuilding of 20 selected cities.3.11 JAWAHARLAL NEHRU NATIONAL URBANRENEWAL MISSION (JNNURM)3.11.1 Special features of integrated development of slums

Both under BSUP and IHSDP emphasis is given forintegrated development of slums through projects forproviding shelter, basic services and other related civicamenities with a view to provide amenities and entitlementsto the urban poor. Accordingly, the approved projectsinclude physical amenities and related infrastructure such aswater supply, sewerages, storm water drain, roads, multipurposecommunity centers, parks, etc.3.11.2 BSUP and IHSDP components of JNNURM emphasisethe following 3 Pro-Poor Key Reforms: Internal earmarking within local body budgets for BasicServices to the Urban Poor:-56 cities have undertaken implementation of this reform.This reform is to be implemented in a staggered mannerover the Mission Period in convergence with theprogrammes of other Ministries as this is also anoutcome of the Mission.3.11.3 Mission Achievements as on 2.1.2012Physical Progrees• All States covered under BSUP• All 65 Mission cities covered and 882 medium and smallcities/towns covered under IHSDP (other than the 65)• 1517 projects approved for providing housing and basicamenities to the urban poorEarmarking of at least 20-25% of developed land in allhousing projects (both public and private agencies) forEWS/LIG category:-22 States (51 Cities) have issued the policy directives toreserve developed land in public and/or private housingprojects.• More than 1.57 million houses sanctioned (15,70,926)• About 5.24 lakh houses completed and 3.74 lakh houses inprogress. Out of the completed houses, 3.20 lakh housesoccupied.• Progress of 3 key reforms under JNNURM largely on track.Implementation of 7- Point Charter: Provision of 7 BasicEntitlements/Services:--: 55 :-3.11.4 Other Achievements• Financial support for setting up of Programme ManagementUnits (PMUs) in 29 States/UTs has been approved to assist

States in monitoring BSUP, IHSDP and other urban povertyalleviation/slum development schemes.• Financial support for setting up of 124 ProjectImplementation Units (PIUs) has also been approved at theCity/ULBs levels to assist cities/project implementingagencies in monitor BSUP, IHSDP and other urban povertyalleviation/slum development schemes.• A framework for Third Party Inspection and Monitoring(TPIM) established and 30 agencies for independent thirdparty inspection and monitoring empanelled by MissionDirectorate. TPIMs for 21 States, namely Andhra Pradesh,Assam, Chhattisgarh, Delhi, Gujarat, Haryana, HimachalPradesh, Jammu & Kashmir, Karnataka, Kerala, MadhyaPradesh, Maharashtra, Manipur, Mizoram, Orissa,Puducherry, Rajasthan, Tamil Nadu, Uttar Pradesh,Uttarakhand and West Bengal have been approved.• In furtherance of the objective of ensuring quality of projectsunder BSUP and IHSDP, two Agencies have been engaged atthe Central level after selecting 126 projects on sample basisfrom the States/ULBs for purpose of TPIM by Government ofIndia. Central TPIM also engaged for the 4 North -EasternStates of Arunachal Pradesh, Meghalaya, Sikkim and Tripuraand UT of Chandigarh to cover all their projects.• An Online JNNURM tracking system as part of an IntegratedPoverty Monitoring System (IPoMS) is developed and isunder implementation. 22 States have adopted IPoMS so farand sending key progress reports online.• States have been exhorted to start preparations for social auditof projects under BSUP & IHSDP. The Manual for SocialAudit has been circulated to States/UTs for initiating aprocess of social audit with the involvement of beneficiaries,reputed NGOs and other stakeholders. Proposals were invitedfrom National Network of Resource Centres (NNRCs) incollaboration of reputed Non-Governmental Organizations(NGOs) for conducting Social Audit Pilots of BSUP andIHSDP Projects. Social Audit Pilot reports of 5 cities (Agra,Bhopal, Chandigarh, Ambala and Rajkot) have been receivedand are under examination.• Detailed Project Reports, Guidelines, Toolkits and Minutes ofBSUP and IHSDP Sanctioning Committees have been put onthe website to establish transparency and sharing ofinformation at large.• A Toolkit on financial support for comprehensive capacitybuilding programme for improved urban governance andpoverty alleviation has been developed and circulated to allState/UT Governments. Financial assistance is being providedfor training and capacity building programmes for personnelat various levels and supporting the establishment of-: 56 :-

National/Regional/State Urban Resource Centers to promotethe development of institutional capacity.• Guidelines on financial support for funding various activitiesrelated to „Project Implementation and Quality Assurance‟and „Community Mobilization‟ relating to BSUP/IHSDPProjects under JNNURM circulated to all States.• More than 200 capacity building/handholding programmeshave been conducted across the country and about 17000State/parastatal/local body officials trained in projectformulation, design, and implementation and monitoring.3.12 RAJIV AWAS YOJANA3.12.1 Rajiv Awas Yojana (RAY) is aimed at making India Slumfreebased on Slum-free State and Slum-free City Plans. Thescheme is in pursuance of the following announcements bythe Government:President of India - Address to both the Houses ofParliament on 4 th June 2009:“My Government proposes to introduce a Rajiv Awas Yojanafor the slum dwellers and the urban poor on the lines of theIndira Awas Yojana for the rural poor. The schemes foraffordable housing through partnership and the scheme forinterest subsidy for urban housing would be dovetailed intothe Rajiv Awas Yojana which would extend support under-: 57 :-JNNURM to States that are willing to assign property rightsto people living in slum areas. My Government‟s effortwould be to create a slum free India in five years through theRajiv Awas Yojana.”Prime Minister in Independence Day Address to the Nationon 15 th August 2009:“We had started the Jawaharlal Nehru National UrbanRenewal Mission for the urban areas. We will accelerate thisprogramme also. Today, lakhs of our citizen live in slumswhich lack basic amenities. We wish to make our countryslum free as early as possible. In the next five years, we willprovide better housing facilities to slum dwellers through anew scheme, Rajiv Awas Yojana”.The announcement of Rajiv Awas Yojana reflects theGovernment‟s vision for inclusive urban growth throughSlum-free States and Cities and property rights as the trackon which this policy for inclusion must be directed. Thescheme envisages the ownership of the vision andprogramme by the States at State-led pace, so that a SlumfreeIndia as an aggregate of the vision of States for SlumFree Cities becomes a reality.3.12.2 Objective and approach under RAY1. RAY envisages creating a Slum Free India by encouragingstates to assign property rights to slum dwellers. It proposes

II.III.to address the problem of slums in a holistic and definitiveway adopting a multi-pronged approach focusing on: bringing existing slums within the formal systemand enabling them to avail of the same level of basicamenities as the rest of the town; redressing the failures of the formal system that liebehind the creation of slums; and tackling the shortages of urban land and housing thatkeeps shelter out of reach of the urban poor and forces themto resort to extra-legal solutions in a bid to retain theirsources of livelihood and employment.The overarching aim of RAY is thus be to drive afundamental change in policy and reform in the existingurban development systems to make cities inclusive andequitable. Release of funds under RAY is predicated uponthe acceptance and implementation of the followingnecessary policy actions by the states:• Assignment of the property right to slum-dwellers• Completion of Pro-poor reforms under JNNURM• Making urban development inclusive with provisionof spaces for the Urban PoorThe strategy for implementation of RAY has the followingmain elements: RAY will be driven by and implemented at the paceset by the States/UTs. A „whole city‟, „whole slum‟ approach will beadopted. In each slum, an integrated approach would be taken,with provision of infrastructure, basic civic and socialamenities and decent housing. Community will be involved at every stage, fromplanning through implementation to post-projects sustenance stages. The attempt to design for people would bedone with the people. RAY will encourage flexibility to states and cities indeciding solutions specific to the requirements of each slum,whether upgrading, redevelopment, or in unavoidable cases,relocation. Multiple choices and models for housing wouldbe encouraged. In-situ development will be the programme ofchoice, to ensure that development does not lead to a loss ofjob linkage or additional hours and income lost oncommuting to work.-: 58 :-

Private sector participation will be emphasised underRAY, for slum redevelopment, wherever feasible, as well asfor creation of new affordable housing stock, both for rentaland ownership. The benefits of health, education, social security,worker‟s welfare, livelihood and public transport linkagesfor holistic slum redevelopment will be provided throughconscious effort for convergence of schemes and dovetailingof budgetary provisions available under the programmes inthe respective sectors.3.12.3 Slum-free City Planning Scheme under RAYAs a precursor to RAY, the preparatory phase was initiatedfrom March, 2010 under the Slum-free City PlanningScheme. Under the Scheme the States are being assisted todraw up their Slum-free Plans of Action to proceed towardsthe goal of Slum-free Cities/States in a systematic and timebound manner. Detailed Guidelines under the Slum FreeCity Planning Scheme were issued and the states beingprovided technical and financial assistance to prepare SlumFree City Plans. So far Rs. 99.98 Crores have been releasedto 157 cities for undertaking preparatory activities underSlum Free City Planning Scheme – the preparatory phase ofRajiv Awas Yojana.The preparatory activities include slum survey, GIS Mappingof Slums and development of Slum free City and Slum free-: 59 :-State Plans with active involvement of experts havingexpertise in the areas of GIS, MIS, Planning etc.With the approval of RAY, the preparatory activities asenvisaged under the Slum Free City Planning Scheme arebeing carried out as per guidelines of this Scheme, underRAY.3.13 BUILDING CENTRES SCHEME3.13.1 A Central Scheme to set up National Network of BuildingCentres was introduced in 1988, with the basic objectives ofproviding a decentralized delivery system for the trainingand upgradation of skills for housing activity, extension oflow cost housing technology and shelter guidance,demonstration of the manufacture and use of low cost ,appropriate and indigenous based building materials andmaterials produced out of industrial and agricultural wastesetc. within the framework of the overall policy of Centraland State Governments for technology transfer fromexperimentation to wide-spread use. The Scheme was beingimplemented through HUDCO and then discontinued. It wasthen proposed to rejunevate and implement the scheme withthe title of “Strengthening the Scheme of National Networkof NirmanKendras/NirmithiKendras(Building Centres)during the 11 th Plan. The EFC cleared this proposal on20/08/2008 with an anticipated expenditure of Rs. 62.00crore.

IIIIIAn amount of Rs. 1.00 crore has been allocated as tokenallocation in BE 2011-12 against projected requirement ofRs. 62 crore for the 11 th Five Year allocations.The guidelines of the said EFC approved Scheme werehowever not issued as it was felt that instead of the buildingcenter concept the focus should be on the objectives of theproposal and other methods by which technologies can beeffectively popularized in a country as vast and varied.Accordingly, a revised Concept Paper, namely, ConfidenceBuilding in Alternate Housing Technologies was preparedand pursuant to this, the draft EFC note along with the draftguidelines was referred to the Planning Commission seekingtheir in principal approval and to tie up funds for theScheme, and to the Department of Expenditure for theircomments/concurrence.IV The Planning Commission and the Department ofExpenditure conveyed their comments. The PlanningCommission, inter alia, observed that the proposed schemeappeared to be Centrally Sponsored Scheme instead ofCentral Sector Scheme, and that the outcome of the proposednew scheme and that of the ongoing scheme of“Strengthening of National Network on the NirmanKendras”which was approved by EFC on 20.08.2008 for Rs.62 croresare similar. Thus proposing of a new scheme when an outputof such scheme match with those of already ongoingschemes does not appear to be proper. The Depart ofVExpenditure had, inter alia, suggested that first we should getthe in principle approval and tie up of fund from thePlanning Commission. They have also suggested that thepossibility of synergizing the instant scheme with thefunctioning of NirmithiKendras could be considered as alsoMinistry may consider synergizing the effort under thepresent scheme with the existing IAY and prospective RAYSchemes. They have also requested for a clarification as towhether the responses of the State Governments have beentaken on board during the formulation of the Scheme.The matter has been examined onwards and furthermodification of the proposed Scheme, in the light of thecomments of Planning Commission and Department ofExpenditure was also considered. Thereafter, it was felt thatkeeping in view the fact that the 11 th Plan was ending in2012, in the first instance, the proposed Scheme may beundertaken by BMTPC as a pilot project utilizing itsavailable funds. BMTPC, apart from the provision ofgrants-in-aid from the Ministry which is Rs. 5.5 croresduring 2010-11, has a reserve fund of Rs. 12.90 crores. Theproposed pilot project may include following elements:Construction of demonstration structures envisaged inthe proposed Scheme by BMTPC, involving activebuilding centers wherever feasible.-: 60 :-

VI While drawing up the operational parameters, BMTPCmay lay down specific criteria for selecting such activeBuilding Centres. The beneficiary contribution in respect of thedemonstration houses envisaged in the draft Scheme willhave to be borne by the BMTPC, and the land,infrastructure and rest of the contributions to be met bythe States Governments under the relevant Schemes suchas JNNURM State Schemes etc. BMTPC may signMemorandum of Agreements with the StateGovernments. Depending upon the success of the pilot project aScheme would be considered during the 12 th Plan. BMTPC has been requested accordingly to submit aproposal for the pilot project.BMTPC has been working on the scheme with consultationwith its stakeholders. A token amount of Rs. 1.00 crore hasbeen allocated under this scheme for the annual plan of2012-13. The total outlay for this scheme in the 12 th Plan isRs. 10.00 crore.3.14.1 NATIONAL URBAN HOUSING AND HABITATPOLICY (NUHHP), 2007I. In order to address the issue of housing shortage, the firsturban area – specific housing policy titled the NationalUrban Housing and Habitat Policy (NUHHP) 2007 has been-: 61 :-II.formulated, which was laid on both the Houses of Parliamenton 07-12-2007. The Policy seeks to set in motion a processfor providing “Affordable Housing for All”, particularly forEconomically Weaker Section (EWS) and the Low IncomeGroup (LIG) through various types of public-privatepartnerships.It aims at promoting sustainable development of habitat inthe country with a view to ensuring equitable supply of landshelter and services at affordable prices to all sections of thesociety. However, given the magnitude of the housingshortage and the staggering requirement of funds amountingto `3.61 lakh crore to meet the cost of construction only forovercoming the shortage, it is obvious that public sectorefforts alone will not suffice in fulfilling the requirement dueto budgetary constraints of both Central and StateGovernments. Involvement of multiple stakeholdersnamely; private sector, co-operative sector, industrialsector for labour housing and the services, institutionalsector for employee housing has been emphasised in theNUHHP. The Policy seeks that 10-15% of land in every newpublic/ private housing project or 20-25% of FAR which isgreater will be reserved for EWS/LIG housing throughappropriate legal stipulations and spatial incentives. It alsoseeks to increase supply of land through restructuring ofinstitutions at State and Central level as well as private sectorand encourage the Urban Local Bodies/ DevelopmentAuthorities/ Housing Boards to promote participative

III.planning and funding based on potential of localstakeholders.The Policy along with tabulated statement indicating thevarious actionable points under the National Urban Housingand Habitat Policy: 2007 have been widely circulated amongthe various Central Ministries, State Governments, UTAdministrations, business chambers, associations of realestate developers and other stake holders. The Policy and theactionable points have been put on the web-site of theMinistry www.mhupa.gov.in3.14.2 Salient features of national urban housing & habitatpolicy, 2007The salient features of the National Urban Housing &Habitat Policy, 2007 are: Focus of the Policy is on affordable urban housing withspecial emphasis on the urban poor. Role of Housing and provision of basic services to the urbanpoor has been integrated into the objectives of the JawaharlalNehru Urban Renewal Mission (JNNURM). Special emphasis has been laid on Scheduled Castes/ Tribes /Background Classes / Minorities, empowerment of Womenwithin the ambit of the urban poor. The Policy focuses on a symbiotic development of rural andurban areas in line with the objectives of the 74th ConstitutionAmendment Act.-: 62 :-Within the overarching goal of "Affordable Housing forAll," emphasis has been laid on urban planning, increasesupply of land, use of spatial incentives like additional FloorArea Ratio (FAR), Transferable Development Rights, etc.,increased flow of funds, healthy environment, effective solidwaste management and use of renewal sources of energy.Encouraging Integrated townships and Special EconomicZones10-15% of land in every new public/private housing projectsor 20-25% FAR, whichever is greater to be reserved forEWS/LIG Housing through appropriate spatial incentives.Private Sector to be permitted land assembly within thepurview of Master Plans. Action Plans for urban slumdwellers and special package for cooperative housing, labourhousing and employees housing is to be prepared.States to be advised to develop 10 years perspective plan forhousing of EWS/LIG.Policy gives primacy to provision of shelter to urban poor attheir present location or near their work place.Approach will be In-situ slum rehabilitation. Relocation willbe considered only in specific cases.Micro finance institutions to be promoted at state level toexpedite flow of finances to urban poor.Model municipal laws to be prepared by the CentralGovernment.Detailed city maps to be prepared based on GIS, aerial surveyand ground verification.

Use of proven cost effective technology and buildingmaterials to be encouraged.Development of mass rapid transit system at sub-regionallevel envisaged.Green cover for cities to be encouraged for balancedecological development.All States to be encouraged to develop a "HabitatInfrastructure Action Plan" for all cities with a population ofover one lakh.Setting up of High Level Monitoring Committee for periodicreview and implementation of the Policy and for makingamendments, modifications wherever considered necessary.3.14.3 Action Plan under National Urban Housing & HabitatPolicy, 2007Encouragement and support to be provided to StateGovernments by the Central Government for preparation ofState Urban Housing and Habitat Policy and Action Plan.State/UT Action plans to focus on accelerated flow offunds.State / UT level policy to provide road map to institutional,legal and financial incentives.State / UT plans to indicate concrete steps for encouraginga participatory approach.Periodic review of implementation of Policy and ActionPlan at State level to be carried out.Preparation of 15-20 years perspective plans in the form ofCity Development Plans (CDPs) based on spatial planningat the city level.-: 63 :-