housing for economically weaker section by private participation

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HOUSING FOR ECONOMICALLY WEAKER SECTION BY PRIVATE PARTICIPATION (By Sh. Sushil Ansal, Chairman, Ansal Group) 1 INTRODUCTION : A recent News item in Punjab Kesari on 26.11.2003 (extracted below) draws attention of any right thinking citizen : “6.5 crores Indians are living under open sky. In Delhi alone One Lac people sleep on Footpaths, roads or beneath Flyovers………” How pathetic is the state of affairs in our country, which has completed 56 years of Independence! The foreigners, who travel in Indian Trains do stare at the co-passenger Indians, when they look out the morning scene of thousand of our citizens relieving themselves, sitting semi nude, along the railway lines - obviously all EWS “Juggi Jompadi” dwellers. The State Governments are aware of such problems and the Central Govt. too had indicated Housing for all” in their five year plans, but the magnitude of problem is too big to be resolved by the Govt. alone. Obviously public private participation is one of the solutions to atleast reduce the problem. Haryana Govt. has taken a lead in the matter thereby enabling availability of around 10,800 EWS plots in private colonies compulsorily sold at Govt. fixed rates of Rs. 100/- to Rs. 500/- per sq. yd. by draw of lots held under Govt. supervision

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Housing for Economically Weaker Section by Private Participation

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Page 1: Housing for Economically Weaker Section by Private Participation

HOUSING FOR ECONOMICALLY WEAKER SECTION BY PRIVATE PARTICIPATION

(By Sh. Sushil Ansal, Chairman, Ansal Group)

1 INTRODUCTION :

A recent News item in Punjab Kesari on 26.11.2003 (extracted below) draws attention of any right thinking citizen :

“6.5 crores Indians are living under open sky. In Delhi alone One Lac people sleep on Footpaths, roads or beneath Flyovers………”

How pathetic is the state of affairs in our country, which has completed 56 years of Independence! The foreigners, who travel in Indian Trains do stare at the co-passenger Indians, when they look out the morning scene of thousand of our citizens relieving themselves, sitting semi nude, along the railway lines - obviously all EWS “Juggi Jompadi” dwellers. The State Governments are aware of such problems and the Central Govt. too had indicated “Housing for all” in their five year plans, but the magnitude of problem is too big to be resolved by the Govt. alone. Obviously public private participation is one of the solutions to atleast reduce the problem. Haryana Govt. has taken a lead in the matter thereby enabling availability of around 10,800 EWS plots in private colonies compulsorily sold at Govt. fixed rates of Rs. 100/- to Rs. 500/- per sq. yd. by draw of lots held under Govt. supervision and control. This is besides 5900 EWS flats sold by private developers at highly subsidised rates ranging from Rs. 15000/- to Rs. 50,000/- per flat. We shall look into provisions made by some of the States as follows:

Page 2: Housing for Economically Weaker Section by Private Participation

2 HARYANA PATTERN:

While granting a Licence for development of any residential colony by a Private Developer under Haryana Urban Development and Regulations of Urban Areas Act 1975, a condition of allotting 20% of the number of plots in the colony to EWS category of persons having a family income upto the prescribed limit (i.e. Rs. 2500/- p.m as at present) by draw of lots, is imposed, through a Bilateral agreement of the colonizer with the Haryana Govt. Such plot sizes vary from 50 sq.m. to 125 sq.m. each. The rate of such plots is also fixed by the Govt. which has been varying from Rs. 100/- per sq. yd. to Rs. 500/- per sq. yd. as at present and not even levy of external development charges is involved in such plots.

In the case of Group Housing colonies, the licensee is required to construct EWS flats not less than 200 sft. each to the extent of 15% of the total number of flats sanctioned in the scheme to be allotted by draw of lots as above at Govt. fixed rate of earlier Rs. 15,000/- per flat and presently Rs. 50,000/- per flat.

3 PUNJAB (PUDA) PROVISIONS :

PUDA Act conditions required 10% of the licensed area of plotted colonies to be earmarked by Private colonizers for EWS plots measuring 40 to 90 sq.m. each for allotment to persons having family income of not exceeding Rs. 2650/- p.m. Such EWS plots shall have to be sold at rates, which are atleast 15% less than the normal plot rates.

4 MADHYA PRADESH (MUNICIPAL CORPORATION/MUNICIPALITY – NAGAR PALIKA RULES 1998) :

In Madhya Pradesh, the colonizers have to deposit “Shelter fee” @ Rs. 40/- per sq.m. for town having population upto 3,00,000; @ Rs. 60/- per sq.m. for towns having population of 3,00,000 to 5,00,000 and @ Rs. 100/- per sq.m. for towns having population of more than 5,00,000. The amount so collected can be loaned (without interest) to Local bodies, Housing Boards/Slum clearance Boards or Development authorities, to be utilised as margin money to obtain

Page 3: Housing for Economically Weaker Section by Private Participation

loan from Financial Institutions for construction of EWS Houses or providing infrastructure (e.g Sewerage, Water etc.) in old Juggi Basti area.

Alternate to paying “Shelter fee” is reservation of 15% developed area to carve out plots of 32 to 40 sq.m. plots or EWS houses of 20 to 24 sq.m. size constructed on 25% of total plot area. The rates for such plots or constructed EWS houses will be determined by a Committee chaired by the Collector.

5 MUMBAI (MUNICIPAL RULES AND REGULATIONS):

The Maharashtra Housing and Area Development Authority permits 20% increase of normally permissible FSI in the case of their schemes having atleast 60% of the tenaments under EWS/LIG category, permitting the under utilised FSI for HIG and MIG categories by treating entire Layout area, while calculating FSI.

Also provisions exists for rehabilitation of old slum dwellers (pre 1985) by owners/developers/co-operative societies in accordance with certain guidelines.

6 UP Development Authorities:

30% of the flats constructed by Private Developers in their Group Housing Schemes are to be meant for EWS for allotment at HUDCO decided rates.

7 DELHI BYE-LAWS:

Delhi bye-laws provide of “Jugi Jombdi” insitu upgradation 25 sq.m. plots (or 18 sq.m. clusters having 7 sq.m. open space provision with 100% coverage), subject to density restriction of 250 tenaments per hectare.However, the magnitude of the housing problem is so big that over 50% of Delhi (the capital of India) stands developed in the shape of unauthorised colonies, which get regularised through political pressures with passage of time. The Jugi Jombdi colonies go on increasing and the planners keep on pondering over the issue.

8 GOVT OF INDIA METROPOLITAN HOUSING STATISTICS 2002:

Page 4: Housing for Economically Weaker Section by Private Participation

The above Housing statistics published by Govt. of India in respect of metropolitan states of India bring out some of the following conclusions, specially relating to Delhi example :-

a) Delhi with 127.91 lacs population as in 2001 has been increasing at an average rate of 3.696 lacs per year needing thereby additional housing number 73,920 per year.

b) The number of occupation permissions issued per year has been @ 864 per year only. (Whereas Gurgaon town planning department alone issues average of 1500 occupation permissions per year, which is over and above around similar figure for HUDA and Municipal authorities, Gurgaon)

c) Only 62.17% house holds in Delhi are having electricity, toilet, safe and drinking water facility (which is atleast better than Vishakapatnam, having 32.3% of such facility)

d) 18.54 lacs population out of 127.91 lacs population (i.e. 14.49%) of Delhi, live in slums.

Page 5: Housing for Economically Weaker Section by Private Participation

9 E.W.S DREAM:

Though “Housing for All” has been the National Agenda, no simple plan or solution is sight with the Govt. for this purpose. The problem is more acute of Economically Weaker Section of our society, who can not afford to buy even one room apartment or a small 50 sq.m. plot.

Delhi example of requiring 73,920 additional houses (leaving aside the old backlog of deficient housing) per year compared to issuance of Occupation Certificates of 864 per year, means, the continued widening of gap between the supply and demand, and this leads to creation of additional unauthorised colonies and slums every years besides making “Housing for All” as more distant and impossible dream target.

Haryana Government’s bold step of involving Private participation in development of residential colonies has proven a good step in this direction though more similar steps would be needed to solve/reduce the problem. Such licensing of colonies has enabled provision of 10,800 EWS plots and 5900 EWS flats at meager rates of Rs. 100/- to Rs. 500/- per sq.yd. Rs.15,000/- to Rs. 50,000/- per flat of EWS category to public. Obviously, the other States need to follow suit and rather improve upon such examples. Haryana Govt. too have allotted 6015 EWS plots (upto 3 Marla) besides providing 2700 such projects to Haryana Housing Board for construction of EWS flats during the past three years.

10 SUGGESTIONS/POSSIBLE SOLUTIONS:

i) All States to follow Haryana Pattern of involving Private Sector towards development of residential colonies with a condition to provide plots/flats for EWS category of our Society.

ii) Even where Development Authorities like D.D.A exist, Private developers should be allowed/licensed to develop colonies in certain regions, to stop mushroom and haphazard grown/expansion of unauthorised colonies and slums, which is otherwise unavoidable because of widening gap between the supply and demand.

Page 6: Housing for Economically Weaker Section by Private Participation

iii) Faster review/extension of development plans by the authorities to cater for every changing need of the area/cities and creating/adding specific zones for EWS plots/houses.

iv) Repealing Urban Land Ceiling & Regulation Act (ULCRA) to create more lands available for housing.

v) Announcing/implementing innovative schemes for planned resettlement of “Juggi Jombdi” clusters along railway lines through out the country.

vi) Creating night shelters atleast, treating it as a social responsibility of the State to provide shelters to the country’s under privileged population living below poverty line, may be, through Private colonizers participation, who may be permitted alternative lucrative schemes/ commercials/parking/recreational developments at all possible and available spaces, even beneath Flyovers or National Highways ribbon development.

vii) Reduction of Stamp Duty on registration of properties to international average rate in respect of development by licensed developers alone with zero Stamp Duty on various EWS properties.

viii) Introducing more lucrative and incentive schemes for developers developing EWS plots/flats/colonies.

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