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Chapter # 9. Housing For All


  • Provide every family with a pucca house, with a water connection, toilet facilities, and 24×7 electricity supply and access.
  • Build 2.95 core housing units in rural areas and 1.2 crore housing units in urban areas.

Current Situation

The President’s clarion call to ensure the provision of houses to every family remains the key objective of the ‘Housing for All’ scheme. Following this announcement, the government has made it clear that one of its key priorities is to ensure safe and affordable housing for all. This mandate also includes upgradation of slums. Recent estimates of the Ministry of Rural Development and Ministry of Housing and Urban Affairs indicate a housing shortage of nearly 3 crore units in rural areas and 1.2 crore units in urban areas. Achieving the goal of ‘Housing for All’ will be a big step in the realization of New India Vision 2022 that will trigger economic growth and create millions of jobs for skilled as well as unskilled workers. Moreover, given the forward and backward linkages of the housing sector, the focus on affordable housing could bring rich dividends for other distressed sectors such as steel and cement.

Since 1985, the Government of India has been implementing a rural housing scheme for families living below the poverty line (BPL). A new scheme, the Pradhan Mantri Awas Yojana (Gramin – PMAY-G) was launched in 2016. This scheme now provides per unit assistance of INR 1,20,000/- in plain areas and INR 1,30,000/- in hilly states/ integrated action plan districts/difficult areas. This support is provided to homeless families or to those who live in kutcha houses as per the Socio-Economic Caste Census (SECC), 2011 data.

PMAY-G is converged with Swachh Bharat Mission (Gramin) and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the construction of sanitary toilets and also to provide the unskilled wage component.

Under PMAY-G, it was proposed to build one crore rural houses in three years between 2016-17 and 2018-19. The estimated financial requirement for the construction of one crore houses in these three years is INR 81,975 crore. During 2016-17, about 32.14 lakh houses were constructed. For the financial year 2017-18, the government set a target of completing 51 lakh houses; 51.38 lakh houses had been sanctioned and 44.54 lakh houses (i.e., 87.29 per cent of the target) had been completed by the end of March 2018.

Under the Pradhan Mantri Awas Yojana (Urban-PMAY-U), the mission aims to achieve the objective of ‘Housing for All’ by 2022 through its four pillars – a) in-situ slum redevelopment; b) affordable housing through a credit linked subsidy scheme; c) affordable housing in partnership between public and private agencies and d) subsidy for beneficiary-led individual house construction or enhancement.

For financial year 2017-18, the PMAY (Urban) targeted the sanctioning of 25 lakh houses and completing the construction of at least half the sanctioned strength. Against the mission target of 1.2 crore, 44.36 lakh houses have been sanctioned and 4.01 lakh houses had been completed by the end of March 2018.


The ‘Housing for All’ scheme faces the following key constraints:

  • Lack of access to finance from formal financial institutions.
  • Long-drawn out, multi-level approval system in urban areas in a large majority of municipal jurisdictions.
  • For several categories of houses or those in particular locations, these delays are common even where a single window system has reportedly been introduced.
  • Limited private sector participation in affordable housing schemes in urban areas.
  • Predominance of conventional construction practices that result in delayed progress in urban areas and the limited use of pre-fabricated and pre-engineered materials.
  • Limited access to suitable land banks for affordable housing projects.
  • Continued rise in the number of slum dwellers.
  • Insufficient number of trained masons despite the operation of the Construction Sector Skills Development Council since 2013.
  • Capacity constraints in urban local bodies (ULBs) to formulate and design mass housing projects.

Way Forward

The strategies to overcome the constraints on affordable housing can be grouped into the following categories: 1) access to finance; 2)technology for construction; 3) reducing costs and 4) efficient use of land.

  1. Access to finance
  • To ensure greater access for the poor to institutional finance, the Department of Financial Services should consider a sub-category under priority sector lending (PSL) for affordable houses. It should also consider relaxing eligibility conditions for bank loans such as raising the cap of INR 10 lakh on the cost of the house and raising the INR 2-lakh income threshold.
  • The government should continue to raise funds commensurate with the ‘Housing for All’ targets. The Union Budget 2018-19 announced the setting up of an Affordable Housing Fund in the National Housing Bank (NHB). It would achieve greater synergies among agencies that are implementing government housing schemes. It would also enable the NHB to mobilize larger funds for housing projects. The Budget for 2018-19 has already announced increased allocations for PMAY (Gramin) to INR 33,000 crore and to INR 25,000 crore for PMAY (Urban) through internal and extra budgetary resources.
  1. Technology for construction
  • Sixteen new emerging technologies have been identified, evaluated and promoted under PMAY(U). These fall under formwork systems (3), pecast sandwich panel systems (6), light gauge steel structural systems (2), steel structural systems (2) and precast concrete construction systems (3). These alternate and sustainable technologies offer safer and disaster resilient affordable housing. These will also improve the quality of construction in a cost effective and environment friendly manner across states/regions and achieve economies of scale in urban areas.
  • A Global Housing Technology Challenge has been launched. It will bring internationally proven construction technologies for adoption in India, enabling us to learn from the best practices from similar economies around the world.
  • The success of the East Kidwai Nagar redevelopment project in Delhi may be replicated wherever possible. The key feature is the replacement of old style public housing that suffered from grossly inefficient use of land with a modern, space optimising housing design.
  • It is necessary to ensure convergence of provisions under the National Urban Livelihood Mission, Pradhan Mantri Kaushal Vikas Yojana, Construction Skill Development Council of India and MGNREGS (for rural areas) for large-scale training of masons to meet construction targets.
  • There is need for a major push in the form of slum development programmes in urban areas.

A National Mission for Slum Rehabilitation will bring a greater focus on making the country slum free.

  1. Reducing costs
  • Government projects should focus on the life cycle cost (LCC) approach to the construction of houses rather than the cost per square foot approach to ensure quality of construction and reduce expenditure incurred on the maintenance of houses.
  • Fiscal support should be provided to companies that use recycled products made from waste. The use of such products should be standardized and adapted to shortlisted design types and pre-fabricated technologies.
  • Regulatory complexities should be rationalized and a single window approval system adopted to reduce the time taken to construct houses in urban areas. The timeline for granting approvals should be specified and if approvals are not accorded within the stipulated time period, it should be treated as deemed approval.
  • Financial engineering, like ‘rental-cum-ownership housing’ in which houses are initially offered on rent and ownership is transferred to the tenant once the cost of the unit is recovered, should be adopted.
  1. Efficient use of land
  • The land lying idle with various sick/loss making public sector undertakings(PSUs) of the central/ state governments may be used to resolve the issue of land availability for affordable housing projects under ‘Housing for All’.
  • The Department of Public Enterprises (DPE) should expedite release of land parcels available with central PSUs that have been identified for affordable housing projects.
  • As suggested in the NITI Aayog’s Three-Year Action Agenda, Indian cities have focused on horizontal growth for far too long. It should now focus on vertical growth. The following measures can be taken to accelerate vertical growth:
  • Launch a mass campaign to sensitize cities and states on the benefits of vertical growth.
  • Provide capacity building to states and cities willing to undertake measures towards vertical growth.
  • Provide considerable rewards to cities that relax their floor space index (FSI) norms. One of the key reasons behind India’s horizontal sprawl is stringent FSI norms. The discussion on changing FSI norms considering trunk infrastructure and other social issues needs to be expedited across India.
  • Provide additional central government funding to cities that undertake FSI reforms under the Smart Cities Mission.

In addition to the measures outlined above, urban governance reforms, such as removing the need to obtain permission for non-agricultural use in the case of land that has been earmarked for residential purposes in master plans, amending rental laws and others, have the potential to alleviate the challenges to achieving the goal of ‘Housing for All’ by 2022-23.


Chapter # 41. Data Led Governance and Policy Making

Objectives Evidence based policy making should be made integral to the overall governance structure in New India, 2022-23. To achieve this, timely gen

Chapter # 40. Optimizing the Use of Land Resources

Optimizing the Use of Land Resources-Ensuring that land markets function smoothly, through efficient allocation of land across uses, provision of secu

Chapter # 39. Modernizing City Governance For Urban Transformation

Objective  City Governance For Urban Transformation To transform our cities into economically vibrant and environmentally sustainable habitats that p

Chapter # 38. Civil Services Reforms

Objective  civil-services-reforms To put in place a reformed system of recruitment, training and performance evaluation of the civil service to ensur

Chapter # 37. Legal, Judicial and Police Reforms

Objective To ensure the safety and security of citizens and ensure access to effective legal systems and speedy delivery of justice. Current Situation

Chapter # 36. The North-East Region

Objectives The North-East Region (NER) should: Have adequate road, rail and air connectivity, waterways, internet connectivity and financial inclusion

Chapter # 35. Balanced Regional Development: Transforming Aspirational Districts

Objective  Balanced Regional Development: Transforming Aspirational Districts Achieve balanced development in India by uplifting 115 districts, curre

Chapter # 34. Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Other Tribal Groups and Minorities

SCs, STs, OBCs, De-Notified Tribes (DNTs), Nomadic Tribes (NTs) and Semi-Nomadic Tribes (SNTs) Objective  To accelerate the socio-economic developm

Chapter # 33. Senior Citizens, Persons with Disability and Transgender Persons

SENIOR CITIZENS  Objective To ensure a life of dignity, social security and safety for senior citizens, enabling them to actively participate in econ

Chapter # 32. Gender

Objective  To create an enabling environment, sans institutional and structural barriers. To enhance the female labour force participation rate to at

Chapter # 31. Nutrition

Objectives  Under POSHAN Abhiyaan, achieve the following outcomes by 2022-23, compared to the baseline of 2015-16 (National Family Health Survey-4):

Chapter # 30. Universal Health Coverage

Objectives  On the strong platform of Pradhan Mantri – Jan Arogya Yojana (PM-JAY): Attain a coverage of at least 75 per cent of the population

Chapter # 29. Human Resources for Health

Objectives  Achieve a doctor-population ratio of at least 1:1400 (WHO norm 1:1000) and nurse-population ratio of at least 1:500 (WHO norm 1:400) by 2

Chapter # 28. Comprehensive Primary Health Care

Objectives  Under Ayushman Bharat, scale-up a new vision for comprehensive primary health care across the country, built on the platform of health an

Chapter # 27. Public Health Management and Action

Objectives  To revamp radically the public and preventive health system in the nation through the following strategic interventions: Mobilize public

Chapter # 26. Skill Development

Obejctives  For harnessing the demographic advantage that it enjoys, India needs to build the capacity and infrastructure for skilling/reskilling/up-

Chapter # 25. Teacher Education and Training

Objectives There cannot be a quality education system without quality teachers. Therefore, a thorough revamp of the entire ecosystem of teacher educat

Chapter # 24. Higher Education

Objectives  Increase the gross enrolment ratio (GER) in higher education from 25 per cent in 2016-17 to 35 per cent by 2022-23. Make higher education

23. School Education

Objectives Universal access and retention: o Hundred per cent enrolment and retention at elementary education and secondary education levels; achieve

Chapter # 22. Sustainable Environment

Objective  The objective is to maintain a clean, green and healthy environment with peoples’ participation to support higher and inclusive economic

Chapter # 21. Water Resources

Objectives By 2022-23, India’s water resources management strategy should facilitate water security to ensure adequate availability of water for l

Chapter # 20. Swash Bharat Mission

Objectives The key objectives of the Swachh Bharat Mission include: 1. Making India Open Defecation Free (ODF) by October 2, 2019. 2. Carrying out ext

Chapter # 19.Smart Cities for Urban Transformation

Objectives  Leverage the ‘Smart Cities’ concept in select urban clusters to: Drive job creation and economic growth. Significantly improve effici

Chapter # 18. Digital Connectivity

Objectives Given the relevance of digital connectivity to economic growth and the need to eliminate the digital divide by 2022-23, India should aim to

Chapter # 17. Logistics

Objectives Achieve multi-modal movement of cargo on par with global logistics standards. Reduce the logistics cost to less than 10 per cent of GDP fro

Chapter # 16.Ports, Shipping and Inland Waterways

Objectives  Double the share of freight transported by coastal shipping and inland waterways from 6 per cent in 2016-171 to 12 per cent by 2025. Incr

Chapter # 15. Civil Aviation

Objectives Enhance the affordability of flying to enable an increase in domestic ticket sales from 103.75 million in 2016-171 to 300 million by 2022.2

Chapter # 14. Railways

Objectives By 2022-23, India should have a rail network that is not only efficient, reliable and safe, but is also cost-effective and accessible, both

Chapter # 13. Surface Transport

Objectives Increasing the coverage and quality of roads and highways is critical to enhancing connectivity and internal and external trade. By 2022-23

Chapter # 12. Energy

Objectives The government’s on-going energy sector policies aim “to provide access to affordable, reliable, sustainable and modern energy”. At t

Chapter # 11. Minerals

Objectives Double the area explored from 10 per cent of obvious geological potential (OGP) area to 20 per cent.1 Accelerate the growth of the mining s

Chapter # 10. Travel, Tourism and Hospitality

Objectives  Increase India’s share in global international tourist arrivals from 1.18 per cent to 3 per cent. Increase the number of foreign touris

Chapter # 9. Housing For All

Objectives Provide every family with a pucca house, with a water connection, toilet facilities, and 24×7 electricity supply and access. Build 2.9

Chapter # 8. Financial Inclusion

Objectives Banking for the unbanked  o Bank accounts: Ensuring universal access to bank accounts, which are a gateway to all financial services.  o

Chapter # 7.Doubling Farmers’ Income (III): Value Chain & Rural Infrastructure

Objectives • Transform the rural economy through the creation of modern rural infrastructure and an integrated value chain system. • Leverage the

Chapter # 6.Doubling Farmers’ Income (II): Policy & Governance

Objectives Create a policy environment that enables income security for farmers, whilst maintaining India’s food security. Encourage the participati

Chapter # 5.Doubling Farmers’ Income (I): Modernizing Agriculture

Objectives • Modernize agricultural technology, increase productivity, efficiency and crop diversification. • Generate income and employment throu

Chapter # 4.Industry

Objectives Double the current growth rate of the manufac-turing sector by 2022. Promote in a planned manner the adoption of the latest technology adva

Chapter # 3. Technology and Innovation

Objectives India should be among the top 50 countries in the Global Innovation Index by 2022-23.1 Five of our scientific research institutions should

Chapter # 2.Employment and Labour Reforms

Objectives Complete codification of central labour laws into four codes by 2019. Increase female labour force participation to at least 30 per cent by

Chapter # 1 Growth (India @ 75)

Objectives Steadily accelerate the gross domestic product(GDP) growth rate to achieve a target of about 8 per cent during 2018-23 This will raise the


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