HOUSING, WATER SUPPLY AND SANITATION
Housing
Introduction 14.1 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 electrici- ty. Further, the type and location of housing is inextricably linked to the employment and affordability of the occupant.
14.2 Housing has been primarily self-help activity for the majority of the households. Increasing population pressure on land and infrastruc- ture and associated high cost have made proper housing inaccessible to the poorer segments of the population, necessitating State interven- tion 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 generations 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 eco- nomic sector.
14.3 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 re- quirements of a majority of vulnerable sections as will as to create an enabling environment for accomplishing the goal of "Shelter for All" on a self-sustaining basis.
Housing Scene 14.4 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 86.7 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.
14.5 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 33th 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 de- creased from 91.4% to 89.2 percent.
14.6 According to the National Building 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 1961 and are likely to be only little higher in 1991. Table -1 presents rural/urban distribution of households and housing shortages for the year 1991 and likely gaps by 2001.
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Table - 1
Households, Useable 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. Useable 92.9 36.7 129.6 111.5 56.7 168.2
Housing Stock
3. Housing 20.6 10.4 31.0 25.5 15.5 41.0
(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.
14.7 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 rea- sonable distance. Urban housing crisis has manifested itself in many ways of which the most significant is the growth of slums and squatter settlement. 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.
14.8 As against the above magnitude of shortage it would be useful to understand the capital formation process in this sector and particu- larly the relative role of public and private sector in the creation of housing stock. Table-2 below shows the investment in housing during the various Plan periods.
Table - 2
Public and Private Investment in Housing
Plan Total Investment Investment %age of Hsg.
Period in the economy in housing Inv. to total
Pub. Pvt. Total Pub. Pvt. Total Inv. in
economy
(Rs. in crores) (Rs. in crores)
1 2 3 4 5 6 7 8
1st 1560 1800 3360 250 900 1150 34
2nd 3650 3100 6750 300 1000 1300 19
3rd 6100 4300 10400 425 1125 1550 15
4th 13655 6980 22635 625 2175 2800 12
5th 31400 16161 47561 796 3640 4436 9.3
6th 9000 66000 156000 1491 18000 19491 12.5
7th 180000 168148 348148 2458 29000 31458 9
Source: Prominent facts of Housing in India NBO & UN Regional Housing Centre for ESCAP, Nirman Bhawan, New Delhi, 1990.
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14.9 An attempt was made by the Sub-Group on Housing finance for (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 house- holds themselves and public and private sector employers extending housing loans to their employees.
Review of Seventh Plan and Annual Plan (1990-92) 14.10. 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 insti- tutional 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 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 crore, 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 anticipated expenditure respectively:-
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Table - 3
Statement showing the Total Outlays on Housing (including MNP)
under State Sector
(Rs. in lakhs)
States 7th Plan 1985-90 1990-91 1991-92
Total Of which Of which of which
Outlay Outlay Outley
M N P M N P M N P
1 Andhra Pradesh 25,740.00 21500 5150 4000 4514 3625
2 Arunachal Pradesh 1,100.00 550 50 721 100
3 Assam 5,000.00 1400 552 325 628 515
4 Bihar 8,860.00 1400 1200 200 1802 293
5 Goa 1,140.00 40 227 10 241 12
6 Gujarat 16,442.00 6300 3470 1050 3150 1305
7 Haryana 4,750.00 425 875 100 915 155
8 Himachal Pradesh 1,500.00 1150 5 435 20
9 Jammu & Kashmir 2,700.00 300 600 738 20
10 Karnataka 12,100.00 7500 2949 1500 4196 2060
11 Kerala 6,500.00 1200 1500 220 1445 270
12 Madhya Pradesh 10,749.00 4000 2074 800 2165 670
13 Maharashtra 26,427.00 5000 8205 65 6645 451
14 Manipur 840.00 300 280
15 Maghalaya 1,040.00 5 661 33 286 25
16 Mizoram 900.00 10 310 16 510 58
17 Nagaland 1,650.00 295 709
18 Orissa 4,080.00 1000 1267 235 1052 235
19 Punjab 7,174.00 300 3094 33 2875 53
20 Rajasthan 4,846.00 800 1900 225 1322 306
21 Sikkim 460.00 100 15 120 20
22 Tamil Nadu 16,500.00 3500 4386 450 5531 450
23 Tripura 1,300.00 200 326 121 389 77
24 Uttar Pradesh 26,158.00 2000 5166 3355 5130 1973
25 West Bengal 10,075.00 600 1695 84 1452 100
Total (States) 196,031.00 57480 47802 12892 47251 12793
Union Territories
26 A & N Island 702.00 133 20 198.00 10
27 Chandigarh 2,860.00 560 590.00
28 D & N Haveli 182.75 10 18.2 46.20
29 Daman & Diu @ @ 40 3 44.26 3
30 Delhi 15,320.00 50 3605 15 3700.00 15
31 Lakshdweep 413.00 90 91.58
32 Pandicharry 1,325.00 150 333.9 35 387.00 70
Total (UTs) 20,802.75 210 4780.10 75 5057.04 98
Total (States & UTs) 216,833.75 56690 52582.10 12965 52308.04 12891
@ included in the sl. no. 5 above.
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Table - 4
Schemewise Outlays on Housing - Central Sector
(Rs in lakhs)
1985-90 1990-91 1991-92
S. Name of Scheme 7th Plan Actual Outlay Actual Outlay
No. Outlay Expenditure Expenditure
1 General Pool Accommodation 13500 10627 2200 2220 3000
2 HUDCO (Equity for Housing) 6000 5777 2000 2000 2600
3 Hindustan Pre-fab Ltd. 200 196 100 100 150
(Equity & Loan)
4 National Building Organi- -- -- 50 50 50
sation and Management
Information System
5 Building Materials & Technology
Promotion Council - Support
i) Grants-in-aid to Building -- -- 100 93 300
Materials & Technology
Promotion Council
ii) Science & Technology and 300 188 100 100 100
Grants to Institutions and
other Programmes (Building
Centre Programmes)
6 Footpath Dwellers Rehabili- 5000 485 800 -- 400
tation Scheme (Pavement Dwellers Scheme)
7 I.Y.S.H. (International 200 71 -- 14 10
Cooperation Activities)
8 Support to Co-operative & -- -- -- 15 15
Regional Housing Finance
Organisation - HCHF (Transferred
from M/o Agriculture)
9 Central Government Employees 400 194 200 200 500
Housing Welfare Organisation
(Seed Capital)
10 Scheme for Urban Development, -- -- -- -- 100
Urban Housing and Urban Water
and Sanitation Grants to Urban
Local Bodies, through HLDCO
TOTAL 25600 17538 5550 4792* 7225
* Excluding scheme at sl. No. 6
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Rural Housing 14.11 The scheme of allotment of house sites and construction assist- ance to rural landless workers and artisans including SCs and STs was initiated in 1971 as a Central sector scheme which was later trans- ferred 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 House sites in 1990-91 and 4.24 lakhs received construction assistance.
Indira Awas Yojana 14.12. 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 not 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 hosing, sanitation and infrastructure. During the Seventh Plan, 6.87 lakh dwelling units were constructed at an estimat- ed 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 lakhs.
14.13. 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 JUDCO. In addition, HUDCO is financing other shelter options like village abadi improvement and building materials.
Urban Housing 14.14 Housing schemes in the urban areas are as under:
a) Social housing schemes for different income groups, operated by the States and city level agencies with budgetary support and loans from JUDCO, 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 pave- ment dwellers in cities;
d) Scheme taken up by the cooperatives for different income groups with the help of Apex Federations and loans from LIC, JUDCO and sched- uled banks;
e) Various other schemes including ownership housing scheme for Cen- tral Government employees, working woman scheme, slum upgradation and home improvement scheme, rental housing scheme for employees of Public Sector Undertakings.
14.15. 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. 5000 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 agencies either promoted housing units on HLDCO norms or plots plus cost loan up to JUDCO prescribed ceiling. During the Seventh Plan, 7.14 lakh EWS and 1.67 lakh LIG units have been constructed under the 20-point pro- gramme.
14.16. Achievement under NRY has also been quite significant. Total subsidy and loan through JUDCO under this
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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.
14.17. During the Seventh Plan 2.3 lakhs dwelling units have been completed under cooperative housing schemes with a total investment of Rs. 1087 crores.
14.18. 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 14.19. 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 sec- tor'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: