HOUSING, WATER SUPPLY AND SANITATION
Housing
Introduction 14.1.1 The dimensions and problems of housing need to be viewed in the overall environment of human settlement. The physical dwelling unit is not the sole element of housing; equally important is the provision of basic services like potable water, sanitation, drainage and electricity. Further, the type and location of housing is inextricably linked to the employment and affordability of the occupant.
14.1.2 Housing has been primarily self-help activity for the majority of the households. Increasing population pressure on land and infrastructure and associated high cost have made proper housing inaccessible to the poorer segments of the population, necessitating State intervention initially as a welfare activity and now recognised as a social and economic imperative. In a developing country like India, problems of urban housing have been more evident, both because of exponentially increasing land and construction cost and deteriorating quality of life in congested urban pockets. Sheer number of additional housing required to meet the needs of the growing urban population presents, a formidable task. If we add to this the unserviceable housing stock in rural areas the task assumes frightening proportions. However, the facts that housing is one of the major employment generators and that motivation for ownership of housing is an important element in the mobilisation of domestic savings, make the task worth our endeavour. Housing is not to be treated as a marginal or welfare sector which is a drain on productive resources but to be recognised as a major economic sector.
14.1.3 In this context, the housing policies and programmes, while accepting that housing is essentially a private activity, have to recognise that State intervention is necessary to meet housing requirements of a majority of vulnerable sections as well as to create an enabling environment for accomplishing the goal of "Shelter for All" on a self-sustaining basis.
Housing Scene 14.2,1 Housing stock in urban areas was estimated at 14.1 million in 1961. This increased to 18.5 million in 1971 and further to 28.0 million by 1981. In the rural areas, housing stock grew from 65.2 million in 1961 to 74.5 million in 1971 and 88.7 million in 1981. The earlier projections of National Buildings Organisation (NBO) put the 1991 housing stock of rural and urban areas in 1991 at 106.2 million and 42.6 million respectively.
14.2.2 A comparison of housing condition in rural and urban areas over the last 10 years, as revealed from the different NSS rounds data, suggests that while proportion of pucca houses has increased over time, the service level has not improved. For example, between 38th and 44th round (1988-89) percentage of pucca house in rural areas has increased from 16.7% to 27.1 % and in urban areas from 57.6% to 71.0 percent. In rural areas 'no latrine' households have marginally decreased from 91.4% to 89.2 percent.
14.2.3 According to the National Buildings Organisation the total backlog of housing is estimated at 31 million in 1991, of which 10.4 million is in urban areas. Taking into account the revised figures available from 1991 census, the backlog of housing shortage in urban areas is going to be little lower. Absolutely houseless families were, however, only 6 lakhs in 1981 and are likely to be only a little higher in 1991. Table-1 presents rural/urban distribution of households and housing shortages for the year 1991 and likely gaps by 2001.
14.2.4 Service deficiency is equally alarming. In 1985, only 28 per cent of urban population had access to proper sanitation and 27 per cent of the urban population did not have a source of safe water within reasonable distance. Urban housing crisis has manifested itself in many ways of which the most significant is the growth of slums and squatter settlements. It is estimated that about 48.8 million persons are living in slums in 1990. About 40 per cent of this population will be in million plus cities.
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Table - 1 Households, Usable Housing Stock and Housing Shortages/Gaps
in 1991 and 2001.
(in million)
Year 1991 Year 2001
Particulars Rural Urban Total Rural Urban Total
1. Households 113.5 47.1 160.6 137.0 72.2 209.2
2. U s a b l e 92.9 36.7 129.6 111.5 56.7 168.2
Housing Stock
3. H o u s i n g 20.6 10.4 31.0 25.5 15.5 41.0
Shortage (21.2) (9.6) (30.8) (26.5) (14.3) (40.8)
Source: The Handbook of Housing Statistics Part-I 1990-NBO
Figures in bracket recomputed on the basis of 1991 census/projected population.
Table - 2 Public and Private Investment in Housing
Plan Investment in Housing %age of
Period Housing
Public Private Total Inv. to
total inv.
in
economy
1 2 3 4 5
1st 250 900 1150 34
2nd 300 1000 1300 19
3rd 425 1125 1550 15
4th 625 2175 2800 12
5th 796 3640 4436 9.3
6th 1491 18000 19491 12.5
7th 2458 29000 31458 9
Source: Prominent facts of Housing in India NBO & UN Regional Housing Centre for ESCAP,, 1990.
14.2.5 As against the above magnitude of shortage, it would be useful to understand the capital formation process in this sector and particularly the relative role of public and private sector in the creation of housing stock. Table-2 shows the investment in housing during the various Plan periods.
14.2.6 An attempt was made by the Sub-Group on Housing Finance (1990-95) to estimate the share of formal sector in total housing investment. The 'formal sector' includes direct budgetary allocations and also net financial assistance through financial agencies like GIC, LIC, UTI, Commercial Banks, Provident Fund and also HFIs like HDFC. This share was estimated at 16 per cent in 1987-88, which leaves a balance of 84 per cent to the 'informal sector' that includes households themselves and public and private sector employers extending housing loans to their employees.
Review of Seventh Plan and Annual Plans (1990-92) 14.3.1 Social housing programme in urban areas and rural housing programme for landless labourers and artisans under the Minimum Needs Programme (MNP) formed the thrust of the Seventh Plan. Role of institutional finance and promotion of building material technology was also given due priority in the Seventh Plan. However, the Plan outlay of the order of Rs. 2424.34 crores, comprising Rs. 2168.34 crores in the State Sector and Rs. 256.00 crores in the Central sector, was only 1.1 per cent of total public sector Plan outlay. Including Indira Awas Yojana under rural development, the outlay works out to about 1.3 percent. Even within the social service sector, housing accounted for
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only 7.63 per cent of Plan outlay. During the two Annual Plans of 1990-91 and 1991-92, while the Central sector outlay was raised to Rs. 128 crores, the State sector outlay remained at the same level. Tables 3 and 4 give the Statewise and the Central sector allocation of Plan outlays and expenditure respectively.
Rural Housing 14.3.2 The scheme of allotment of house sites and construction assistance to rural landless workers and artisans including SCs and STs was initiated in 1971 as a Central sector scheme which was later transferred to State sector in 1974. This scheme is a part of the Minimum Needs Programme. Under the MNP, higher priority was accorded to this scheme during the Seventh Plan, setting apart a sum of Rs.576.9 crores. As many as 43.2 lakhs house sites, as against the target of 29 lakhs, were allotted and construction assistance provided to 22.5 lakhs families. During 1990-91 and 1991-92 the outlay provided was Rs.129.65 crores and Rs.128.91 crores respectively. An estimated 7.74 lakhs additional beneficiaries got Housesites in 1990- 91 and 4.24 lakhs received construction assistance.
Indira Awas Yojana 14.3.3 The Ministry of Rural Development is operating this fully subsidised rural housing scheme as part of rural employment programme for providing houses to the SCs/STs and freed bonded labour. It now forms a part of Jawahar Rozgar Yojana (JRY). The objective of this scheme is to develop a viable micro- habitat, provide housing and ensure a base for higher level of earning for the beneficiaries. A sum of Rs. 12,700 per unit for plain areas and Rs. 14,500 per unit for difficult hill areas is given as grant under this scheme to the State Governments for housing, sanitation and infrastructure. During the Seventh Plan, 6.87 lakh dwelling units were constructed at an estimated expenditure of Rs.699.58 crores and for the year 1990-91 the target achieved was 1.71 lakhs, at an anticipated expenditure of Rs. 187.96 crores.
14.3.4 Housing and Urban Development Corporation (HUDCO) has been financing several rural housing schemes by earmarking 15 % of its resource allocation to such schemes. Till June 30, 1991, 2.15 million houses entailing project cost of Rs. 1247.80 crores were sanctioned under these schemes. The loan releases worked out to Rs. 503.17 crores. About 1.6 million units were completed which accounted for 46% of the total units funded by HUDCO. In addition, HUDCO is financing other shelter options like village abadi improvement and building materials.
Urban Housing 14.3.5 Housing schemes in the urban areas were as under:
a) Social housing schemes for different income groups, operated by the States and city level agencies with budgetary support and loans from HUDCO, LIC and other financing agencies;
b) Housing and shelter upgradation scheme for the urban poor, as part of Nehru Rozgar YoJana (NRY) introduced in November, 1989 in cities with population between 1 and 20 lakhs;
c) Footpath Dwellers Night Shelter Scheme introduced in 1988-89 to provide shelter, and later on also sanitation facility, to the pavement dwellers in cities;
d) Scheme taken up by the cooperatives for different income groups with the help of Apex Federations and loans from LIC, HUDCO and scheduled banks;
e) Various other schemes including ownership housing scheme for Central Government employees, working women scheme, environmental improvement of urban slums and home improvement schemes, rental housing schemes for employees of public sector undertakings, sites and services schemes operated by various State Governments.
14.3.6 The EWS housing was the most significant component of social housing scheme, as part of the 20-Point Programme during the Seventh Plan. It was contemplated that the public sector would provide sites and services to the beneficiaries. In addition, the beneficiaries would be provided a loan of Rs.5,000 per unit repayable in a period of 20-25 years at a concessional rate of interest. In practice, however, the scheme operated in a different manner - State
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agencies either promoted housing units on HUDCO norms or plots plus cost loan up to HUDCO prescribed ceiling. During the Seventh Plan, 7.14 lakh EWS and 1.67 lakh LIG units have been constructed under the 20-point programme.
14.3.7 Achievement under NRY has also been quite significant. Total subsidy and loan through HUDCO under this component are estimated at Rs. 196 crores for the period 1989-90 to October 1990 covering 5.73 lakh units. The impact of Night Shelter Scheme has so far been limited with an estimated outlay of only Rs.2.27 crores during the last two years benefitting 26,200 pavement dwellers.
14.3.8 During the Seventh Plan, 2.3 lakhs dwelling units have been completed under cooperative housing schemes with a total investment of Rs. 1087 crores.
14.3.9 It has been estimated that under the various programmes in Public Sector about 10 lakhs houses have been constructed/upgraded each year during Seventh Plan.
New Initiatives in Housing Finance 14.3.10 There has been a marked growth in the flow of credit from the financial institutions and banks to the housing sector during Seventh Plan period. The contribution of LIC increased from Rs. 185 crores in 1984-85 to Rs.825 crores in 1990-91, Provident fund advances from Rs. 153 crores to Rs.478 crores during the same period and banking sector's contribution from Rs. 186 crores in 1986-87 to Rs. 387 crores in 1990-91 The most important development in strengthening the housing finance in recent years has been the setting up of an apex institution the National Housing Bank (NHB) as a subsidiary of the RBI under the NHB Act, 1987. The important activities of the NHB are:
i) establishing Home Loan Account System - a contractual deposit scheme linked to guaranteed loan from scheduled banks. Till December 1991, 5.5 lakhs accounts have been opened in various commercial banks and housing finance institutions;
ii) liberalised lending guidelines and increased funding from banks;
iii) refinance at less than commercial rates of interest of HUDCO and bank's scheme as well as land development and shelter programme of public and private agencies; and
iv) guidelines for regulation of housing finance.
During 1990-91 total refinance of HFIs was put at Rs.478.39 crores including Rs.161.10 crores for rural housing.
14.3.11 Larger flow of institutional finance has been most evident in relation to the phenomenal growth in HUDCO's operations during the Seventh Plan as well as two Annual Plans. During the Seventh Plan, HUDCO's sanctions for various shelter related schemes totalled Rs.2834.18 crores and loan release Rs. 1796.85 crores, facilitating construction of about 20 lakh dwelling units. Loan operations of HUDCO registered a growth of 133.5 per cent compared to previous Plan.
14.3.12 The Life Insurance Corporation of India (LIC) has also emerged as an important contributor to the housing finance. The contributions by LIC comprising of direct lending, bulk loans and assistance to State Government apex bodies and loans to its own housing finance subsidiary totalled around Rs. 1570 crores during the Seventh Plan. The contribution was as high as Rs. 825 crores during 1990-91.
14.3.13 A number of specialised housing finance subsidiaries have been floated by the scheduled commercial banks. There has also been spurt in the number of housing finance companies operating in the private sector.
Building Materials, Technology Promotion and Extension 14.3.14 Efforts to effect savings in construction cost through promotion of low-cost and innovative building materials and technology are important as building materials account for a major part of the total cost of construction. Some of the efforts made during the Seventh Plan and two Annual Plans in this direction were:
i) setting up of Building Materials and Technology Promotion Council (BMTPC) to provide an appropriate platform for technology transfer and
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application in the shelter sector and promoting commercial production of innovative materials, with use of industrial wastes like flyash, redmud, phospho-gypsum as well as agricultural wastes;
ii) conducting experimental housing projects in different geo- climatic regions by NBO and developing appropriate design and safety measures in zones prone to land slides;
iii) setting up a network of building centres as a Centrally Sponsored Scheme, under which over 200 Building Centres have been identified out of which 77 are operational; and
iv) increasing involvement of non Governmental organisations in supplementing Governmental efforts in the field of technology transfer.
National Housing Policy 14.4.1 The Global Shelter Strategy adopted by the United Nations in November, 1988 calls upon different Governments to take steps for the formulation of a National Housing Policy (NHP) to achieve its goals. The Ministry of Urban Development prepared a draft NHP which was tabled in both Houses of Parliament in 1988. Subsequently, another draft was prepared and widely circulated and discussed and broadly endorsed by Urban Development and Housing Ministers' Conference held in Delhi in October, 1990. The objectives of draft NHP and the major components are described below:-
Objectives 14.4.2 The basic objectives of the policy are:
- to assist all people and in particular the houseless, the inadequately housed and the vulnerable sections, to secure for themselves affordable shelter through access to developed land, building materials, finance and technology;
- to create an enabling environment for housing activity by eliminating constraints and by developing an efficient system for the delivery of housing inputs;