CHAPTER - ill. Housing is one of the basic requirements of human beings. various conferences and meetings conducted all over the Globe.

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1 CHAPTER - ill RURAL HOUSING SCHEMES IN INDIA - A RESUME' Housing is one of the basic requirements of human beings. Adequate shdter for each and every household is a fundamental pre-requisite for a healthy lig in any society. Along with low housing requirements proper habitat and congenial environment are also emphasized by the United Nations in various conferences and meetings conducted all over the Globe. From a social point of viw a house provides significant economic security and status in society. For a shetterless person a house brings about a profound social change in his existence, endowing him with an identity. A house or shelter, how so ever tiny serves that aspect of basic needs of poor households without which it is difficult to survive. It provides them both physical and mental strength and psychological base on which they can fall back while accessing other basic needs such as food, clothing, etc. For a poor household, a house constitutes an asset that can be offered as a collateral security for a loan during difficult periods. A house also protects a poor household from the vagaries of nature, in the absence of which they are forced to take to streets and live in open. Apart from a house provides security to people. Desire to have a shelter of any kind devoid of sanitary facilities can well be observed in urban areas, where the slums exist for providing shelter to the people of lower income groups. Those who cannot obtain a shelter in slums are compelled to spend their nights in

2 footpaths, railway platforms or even at public places. The scene of rural areas are different from urban areas where slums obviously do not exist but absence of shelter can very well be observed among the weaker sections. Mostly landless labourers, members of the weaker sections are providing sheltering landlord's house as attached or bonded labour or as servants and maids in lieu of work. The rural scenario is fast changing with the implementation of land reforms programme, cropping pattern, system of wage payment and other newer avenues for work, which has been opening up gradually. As a result more and more weaker sections of the society are displaced from their existing shelter. In India nearly three-fourth of population live in rural areas. It is here that the housing needs are most unmet. As a matter of fact the problems of homelessness and slums in urban areas are largely on spillover problems of inadequate rural habitat. In 1988 the United Nations Organizations called upon different Governments to take steps for the formation of National Housing Policy to achieve housing as a part of housing problem. NATIONAL HOUSING POLICY (NHP) The NHP announced by the Government recognized the following: 1. Housing as a basic need. 2. Housing as a production activity that stimulates employment and generation of savlngs. 3. It also outlines the steps for dealing with various constraints to housing activity.

3 The NHP identified the following areas for action that are dealt with the problems of rural housing. i. Prevention of alienation of homestead land and tribal lands. ii. Avoidance of unnecessary displacement of rural settlements due to development projects. iii. Rehabilitation of households affected by natural calamities. iv. Rural housing development agencies for the supply of credit and materials on flexible terms suitable for local requirements. v. Giving special attention to the needs of SCs I STs and other disadvantaged groups. vi. Linking rural housing with the Integrated Rural development Programme (IRDP) and Jawahar Rozgar Yojana (JRY) for accentuating the pace of rural housing and also the related programmes of asset creation and employment generation. vii. Setting up of suitable Institutional structure for strengthening the existing rural development agencies at state, district and local levels to meet the need of the housing sector. Considering the importance of providing shelter to shelter less in rural India, Government had come out with certain programmes and projects, which were incorporated in the five-year plans. In this process Government identied SCs 1 STs, landless agricultural labourers, non agricultural labourers, artisans, economically weaker sections, socially marginalized groups such as women, physically handicapped and victims of natural calamities as a special

4 category of shelter less communities and given much importance in the National Housing Policy In fact the draft NHP that was placed before the Parliament during 1988 stressed a particular goal of 'eradicating houseless ness by AD 2001". NHP 1992 In each and every five-year plan certain modification with exclusions and inclusions are taken place in the welfare and development programmes laid down for rural population. After the draft plan, again in 1992 NHP was placed before the Parliament with linkages to the development aspects such as alleviation of poverty, environmental protection, conservation of heritage, settlements, planning and rural employment. In 1994 another NHP was adopted shifting the Government's role from builder to facilitator of housing activities. This policy has a specific objective that gives scope to vulnerable and marginalized sections of the society to get affordable shelter. In providing shelters to shelter less, role of social action groups was fully recognized. NHP 1998 The government in its National Agenda for Governance stated "Shelter is a basic human requirement that needs to be met in a priority basis. We are therefore committed to evolving a NHP in consultation with the State Governments aimed at providing housing for all. Towards this end we shall facilitate construction of twenty lakhs additional housing unit annually. As in other programmes, the emphasis will be on the benefits to the poor and the

5 deprived". In pursuance of this commitment, the Governments announced the NHP 1998 on July 30, The basic thrust of the policy is in creating a strong publicprivate sector partnership to resolve housing and habitat issues. To lure the private sector to make investment in infrastructure sector, the Government has offered the package of fiscal and other concessions so that the private sector can be motivated to take up the task for the housing for poor. These concessions are proposed to be linked with housing for vulnerable sectiins. The Govemment is of the view that the gap in resources for housing and infrastructure cannot be met form the public exchequer. It logically follows that no housing policy can make any significant headway without massive participation of the private sector. The Government intends that the private sector would be persuaded to invest a part of their profits for the housing needs of the poor. In this connection the ninth five-year plan (1997 to 2002 ) has rightly stated "Housing has been primarily a self help adivi. The housing policy and programmes have to recognize that State intervention is necessary to meet the housing requirements of the vulnerable sections and to create an enabling environment in accomplishing the goals of "shelter for all", on a sustaining basis. The very premise of the Housing Policy 1998 is therefore questionable, if it is intended that private sector would funnel its resources for housing for the economically weaker sections The National Rural Housing and Habitat Policy 1998 states that "At present the rural housing and to a large extend informal housing do not benefit

6 from the outcome of research and development. Efforts will be made to disseminate information about new technologies. In this regard a mission approach may be adopted." In view of this Government has decided to launch a National Rural Housing and Habitat Mission. Conceptually, the "Mission Approach" will bring a new sense of urgency, seriousness and emphasis on fixed goals and clear time frame. The emphasis will not be merely on speedy construction of the houses, but construction of quality housing using the most cost effective and environment friendly building technologies, designs and materials. Adoption of a "Mission Approach" wih be significantly in the rural housing policy scenario in three aspects. 1. By facilitating the articulation of specific goals. 2. Achievement of these objectives within a specific time frame and the espousal of a holistic interdisciplinary strategy whose hallmark will be the systematic infusion of science and technology inputs on a continuous basis to improve all around standards of construction practices in rural India through a mechanism of community intermediation. 3. The implementation strategy would focus on achieving these goals on pilot project basis through cost sharing mechanisms. The aim would be to arrive at an appropriate region, specific technology mix, ensuring propagation of cost effect environment friendly construction designs, materials and techniques within a specified time frame.

7 URBAN AND RURAL HOUSING SCENARIO IN INDIA The estimates of housing shortage reveal that in the urban sector, according to the NBO, on the basis of 1991 Census, there was a shortage of 8.23 million housing units in urban sector. It is hoped that the shortage would decline to 7.57 million units in 1997 and 6.64 million units in Some other estimate indicates that housing shortage will increase to 9.4 million units in Available data on housing stock in urban and rural lndia (Table No. 3.1) suggest that between 1951 and 1991, population had increased about 235 per cent, however the increase in the number of households was about 206 per cent. This indicates that the government, in spite of its several housing programmes, was not able to achieve the demands created by the population explosion and for that matter no Government would be able to meet such huge demands Table No. 3.1 Details regarding the Population, Households and Housing Stock in India (in I I I I I I I I I I I Source: 1991 Census.

8 Urban Housing Scenario In the urban housing scenario there are innumerable agencies, both public as well as private, in operation. Among the public housing Central Governments and State Governments and between these State PWDs, State Public undertakings, Housing Boards and Ci Improvement Trusts are involved. In the Central Sector, Central Construction Agencies such as Central PWDs, Central Public Undertakings, Miliiary Engineering Services, Post and Telegraphs and Railways are involved. In addition to these massive housing schemes are implemented by the Housing and Urban Development Corporation (HUDCO) under the Ministry of Urban Affaim and Employment, National Cooperative Housing Federation, etc., and public instiins, such as LIC, GIC and Banking sector are also contributing to their might through promotion of loans and advances to the employees and the promotion of the Co-operative Sector on a big scale. In the private sector the promotion of housing schemes and construction of massive scale housing are being encouraged by the provision of adequate finances by National Housing Bank. RBI, Commercial Banks in the private sector, corporations like HDFC and specialized institutions set up by Nationalized Banks, also provide adequate finances in this area. In spite of the entire tremendous boost provided to the housing sector in recent times, the housing shortage continues to be alamling. State Governments have encouraged specific programmes and policies in the public and private sectors in construction activities and the new Housing Policy ~ndicates the promotion of housing by way of providing adequate finances in the

9 housing activity. The magnitude of housing shortage in urban and rural areas is evident from the following Table No Table No. 3.2 Households, Usable Housing Stock and Housing Shortages in 1991 and Source: The Handbook of Housing Statistics - Part 1, 1990, reproduced in the Eighth Five Year Plan , Vol. II, Planning Commission, p.361 Figures in brackets recomputed on the basis of 1991 Census / Projected population. Table No. 3.2 shows the number of households and estimates of housing shortage in India 1991 and As per the NBO estimates there was a shortage of 104 lakh houses in urban area and this figure was projected to rise to 155 lakhs in Figures recomputed on the basis of 1991 Census show that in 2001 urban areas will have a shocage of 143 lakhs houses, while there had a shortage of 96 lakhs houses in Thus during the decade, housing shortage in urban areas will increase by 47 lakhs. It may be noted that the extent of shortage has been worked out considering certain minimum standards. It does not imply that an equivalent number of families are entirely shelter less The problem of urban housing is felt much more acutely with the immigration of population from the neighbouring areas. All sorts of working population, literate, semi-literate, etc., flow to the urban centres in search of

10 employment. This undue concentration in urban areas has to be tackled through proper and effect~ve urban housing policies and with the adoption of proper programmes and policies by way of providing basic jvic amenities and environmental improvement programmes in semi - urban and rural areas. The future of the urban centres leads only in the liquidation's of housing shortage as well as eliminating all urban slums and provision of adequate amenities and facilities in the region. Rural Housing Scenario Rural housing is qualitatively different from urban housing in the sense that the housing activity is not very much based on the cash ewnorny but depends to a considerable extend on land rights and access to resources. In rural housing also there is need to provide house - sites to the poor so that they are able to erect housing units over them. lndia is primarily rural in character where about 74 per cent of the population lives in villages (1991 Census). Though there is no unanimous view about the magnitude of poverty, it is fact that vast majority lives below the poverty line. A vast majority of the poor either do not have a house or live in an unserviceable Kutcha house. According to 1991 Census there are 341 million households who are absolutely houseless and about million households live in unserviceable Kutcha house. The total housing shortage in the country is thus about million. To meet this housing shortage the Government of lndia has given special attention to the programmes for the rural housing and expectation are that by 2002 all rural houseless people will be provided shelter.

11 Rural housing should not be confined to mere provision of a roof over one's head in the changing socioeconomic-politico system in India in particular and in the developing economies of the world in general. tn fad rural housing should contribute to the following : 1) Substantial improvements in the quali of life of the rural households and reflect their aspirations. 2) The total development of the personality of the rural family. 3) Facilitate provision of all basic amenities, which have a direct impact on the family's health vigor and effiiency. 4) Internal and external environment of the house should have aesthetic value and should be eco friendly from the health point of view and 5) Women and children in particular should be able to maintain their health well and be inspired to pursue economic and social activities. The rural housing problem has arisen because of certain socioeconomic factors of the rural society. The growing population pressures the emerging social requirements and the improving quality of life need newer, better and a large number of houses for the rural teeming millions. On the basis of the review of the progress of rural housing, it can be seen that the housing shortage had marginally dedined in the Sixties but the trend witnessed a reversal in Seventies. As regards the growth rate in rural households, it was 7.83 between 1971 and The usable housing stock increased at a rate of 1.54 in rural areas. So far as the housing shortage is concerned it is estimated to have

12 increased from 6.5 million dwelling units in the year 1951 to over 16 million in 1981 and 18.8 million in According to the estimate of the NBO 1991 March, out of the total housing shortage of 310 lakhs units in the country, 206 lakhs units are in rural areas. The estimated housing shortage at the beginning of was estimated at 140 lakhs dwelling units in the rural areas. To cope with the problem as many as 20 lakhs new units are needed every year for the increasing population. As housing encourages, economic activities, generates employment opportunities and create solid base for healthy and hygienic living, the magnitude of the problem and its inherent difficulties, the task of improving the housing conditions in rural areas should be viewed as an integral part of a programme for overall development of the villages of the country. Housing problem is essentially the problem of the poor and low - income groups. During the Eighth Five Year Plan a target of 7.80 million new housing stock was set, out of which 6.29 million units were for economically weaker sections and low-income groups. However, since the housing demand has to be looked after by the state administration each state is trying to achieve its target every year and in this process some of the states appear to be establishing progress over others. This is what is indicated in Table No Consolidated figures at the all lndia level indicate that within a decade, the proportion of houseless I households in rural lndia have declined from 0.47 per cent to 0.28 per cent. This is an appreciable achievement in terms of statistical data.

13 DIMENSIONS OF THE PROBLEM "Measuring Shelter Deprivation in India", Indian Economic Review, Vol. XXX (Z), There are many reasons behind houseless ness and low qualrty of houses in rural areas. The major factors are:- 1. Poverty / Low income 2. Population growth 3. Westernization I Value changes and 4. Environmental factors The poor lack in all basic facilities. For them food is the most important need. The rural poor pay greatest attention to satisfying hunger and

14 then clothing needs. Unable to bear the cost of building materials they remain houseless or live in madequate and congested house. The poor people also lack in other facilities such as drinking water (Table No. 3.4). They are the people who need special assistance for house construction. They can certainly provide labour but left to themselves they cannot arrange for construction materials. They also need to be informed about alternative construction technologies that can be low and effective. It is doubtless the urban- rural divide in housing will continue to prevail for a long but the degree of differences certainly calls for intervention in rural areas,

15 The shelters should be provided with basic amenities such as access to drinking water, toilets, electrification and general sanitation. The National Sample Survey ( ) reveals that about 97 per cent of the households have no toilets and 93 per cent of the households do not have any bathrooms. Only 0.35 per cent of them were having water supply and 45 per cent of the households' living room was being used as kieehen and the remaining households were cooking their food in the open area in front of their houses. The data presented in Table No. 3.4 gives improved picture about percentage of households have safe drinking water and toilets. As per this reference, in rural lndia about per cent of the households are now having access to safe drinking water and this indicates that stl we have about 45 per cent of deficiency in providing one of the most important amenities, that ultimately lead to better health. All lndia figures show that only 9.48 per cent of rural households are having toilet facilities. Table No. 3.5 indicates that all lndia level in rural areas there are per cent Pucca houses per cent semi Pucca houses and per cent Kutcha houses, which in true sense should not be called as 'a house'. These houses are built with mud walls; roof covered with straw and lives supported by bamboo poles. They are known for poor sanitation and in many part of rural lndia observed that both human beings and cattle live together in the 'house'. The unhygienic cohabitation is the root cause for several diseases. Apart from sanitary facilities, our rural houses are characterized with poor quality of building materials, unmatched building technology and

16 unsuitable to village social structure. Moreover, reasons to the houses constructed under several housing programmes are not occupied by the beneficiaries, misused, or deserted. This is particularly true in the case of housing colonies specified for Scheduled Caste and Schedule Tribes. Table No. 3.5 Occasional Paper, No

17 HOUSING: ROLE OF STATE AND SOCIETY Even in a welfare and developed society neither it is the responsibility nor possible for the state to construct and provide housing facility to every individual through Governmental funds and efforts. At best such a responsibility may be confined to the poorest of the poor of the society. Even then it is the primary responsibility of both the society and the State to ensure and create condition under which every individual of the society could acquire proper housing facility which include not only providing shelter but a package of minimum amenities like drinking water, sanitation, ventilation, etc., and that too within environmentally healthy surroundings. As a matter of fact, it should be a partnership between the state and those who can afford on their own as well as the community to achieve above-mentioned objectives. This involves five functions 1. Acquisition of land. 2. Development of land. 3. Financial assistance. 4. Construction. 5. Putting limits on disparities. The main responsibility of the state lies in acquisition of land and its development to enable the community to construct the houses of its own. To ensure that, under well-set norms, housing is being provided to the weaker section with the availability of all the five objectives are integrated is the primary

18 duty of the State. For the remaining sections, the State should depend on and encourage private parties, mutual savings society, builders, corporations, etc. The National Housing Policy calls for a progressive shift from a subsidy based housing schemes to cost sharing or cost recovery cum subsidy scheme for rural housing. It also emphasizes a progressive shift of rural housing strategies from target orientation to demanddriven approach. So far as the middle and high income groups are concerned, this approach may considered acceptable but for the low income groups, like land less labourers and persons living below poverty line, this approach fails to appreciate the fact that the capacity of these vulnerable sections to build a reasonably safe pucca house is that without State subsidy is extremely limited with such an approach, the goal of achieving "shelter to all" will continue to recede Re the horizon. It is there for necessary that the government should change its basic approach on National Housing Policy towards weaker sections. RURAL HOUSING AND PLANS Improvement in housing conditions in the villages was intrinsically a part of community development and village planning only one programme introduced in Village housing projects scheme was provided for assistance to villagers. For construction or improvement of houses till the 4th Five Year Plan. It was only during the fifth plan that provision was made to provide sites to some of the rural landless as well as in addition to the schemes operating in urban areas.

19 The scheme of allotment of houses, house sites and constructing assistance to rural landless workers and artisans, including Scheduled Castes and Scheduled Tribes was initiated in 1971, during the Fourth Five Year Plan as the Central sector scheme which was later transferred to State sector in The scheme became a part of the Minimum Needs Programme, which was taken from the Fourth Five Year Plan. The provision of shelter, particularly for the weaker sections has been an integral part of the Twenty Point Economic Programme announced in 1982 and subsequently revised in By the time or period of Sixth Five Year Plan, the housing and Urban Development Corporation and the General Insurance Corporation had also entered the field of rural housing and began to provide loans for construction in rural areas. Housing construction for poor families is also being taken up under the National Rural Employment Programme, Rural Landless Employment Guarantee Programme, and Food for Work Programme, National Disaster Relief and Reconstruction Programme and Special Housing Schemes for Sweepers, Weavers, etc. The Seventh Five Year Plan set for itself the objectives of promotion and encouragement of Self Help Housing with the provision of house sites to identified rural families in which cost of houses are to be within the repayment capacity of the beneficiaries. The Seventh Five Year Plan also has provided stimulus for private housing, adoption of low cost housing techniques, etc.

20 INDIRA AWAS YOJANA (IAY) A new programme, viz., 'Indira Awas Yojana' for the construction of housing units for SCI ST and free bonded labourers in rural areas, was initiated in and subsequently included in Javahar Rozgar Yojana (JRY), which has been operating since The endeavor during the Eighth Five Year Plan period will be towards evolving an approach to rural housing which leads to setting up of truly integrated micro - habitats and address this scheme, especially the disadvantaged groups including the poorest segment of SC /ST and the bonded labourers. At present (from 1996) IAY, a scheme to develop a microhabitat and to ensure a base for higher level of earnings for the beneficiaries is the single effective countrywide programme for solving the rural housing problem. Objectives and Achievement The following are the objectives of the IAY scheme: 1. To develop a micro habitat and 2. To ensure a base for higher level of earning for the beneficiaries. Under the MNP, higher priority was accorded to the scheme of allotment of house sites and construction assistance to rural landless workers and artisans including SC and ST'S during the seventh plan, setting apart a sum of rupees crore. As may 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 and , the outlay provided was rupees crore and rupees crore respectively. An estimated 7.74-lakh additional

21 Npf?eS crore respectively. An estimated 7.74-lakh additional beneficiaries got house sites in and 4.24 lakhs received construction assistance The overall performance under IAY since to is given in Table No The Table shows the year wise details of expenditure and number of houses under the subsidized scheme. Table No. 3.6 Expenditure and Houses Built Under Source: Yojana, July 15, 1992, p. 27 Table No. 3.6 says that 8,57,755 houses at a cost of rupees 88, lakhs have been constructed since the inception of the programme up to During , houses were constructed and construction of 1,30,473 houses was under progress, the expenditure incurred was rupees 22, lakhs. Under the IAY scheme 3.72 lakhs houses were built during as against the target of 2.54 lakhs at an expenditure of rupees crore. During the central allocation under the scheme was enhanced to rupees 1,000 crore as against 400 crore in , with the objective of constructing One million houses. By the end of 1995 about 2.88 lakhs houses were built and

22 the construction about 5.71 lakhs houses is under progress for which an expenditure rupees crore has been incurred. The physical performance under the eight IAY scheme of house site cum house construction assistance indicates that weaker section have been given due priority. Details of which have been in. Table No: 3.7 Table No. 3.7 Note: - ' up to July Source: Economic Survey, 1995-'96. According to the Ministry of Rural Areas and Employment, the total rural housing gap was assessed to be to the tune of lakhs units in This is expected to rise to a figure of lakhs units by this assumes that all the existing houses will remain livable at least by If the above assumptions is excluded from the estimates India faces a housing gap of lakhs units by 2021 out of which lakhs units housing gaps will remain in the rural areas (see Table No. 3.8)

23 Table No. 3.8 Source: Niazi and Patara (1995), Kurukshetra May June " Housing for the Rural Poor ". Dr.K.D.Gaur, p. 89. The Central Government under IAY scheme provides built houses to the rural poor including SCs I STs and free bonded labourers below the poverty line. Following are the basic guidelines of the IAY. A. Beneficiary selection should be done at Grama Panchayat level in an open forum. B. Allotment of houses should be done in the name of the female member of the household. C. Micro habitat approach, i.e., the provision of roads, drains, drinking water, etc., is to be encouraged; and D. Linking with the Jawahar Rozgar Yojana and Integrated Rural Development Programme in order to provide the income generation and skills upgradation component The layout, size and design of the house would depend on the local conditions and no type of design is prescribed for IAY except that the plinth area of the houses should be around 20 sq. metres. The houses are to be designed

24 in accordance with the desire of the beneficiaries keeping in view the climatic conditions and the need to provide proper space, kitchen, ventilation, sanitary facilities, smokeless choolha, etc. The beneficiaries will have complete freedom as to the manner of construction of the house, which is their own. This will result in economy in cost, ensure quality of construction and lead to satisfaction on the part of beneficiaries. The Government of India had fixed a total amount ranging from Rs. 14,000 to 15,800 per househom earlier. Now the ceiling assistance, taking into account the overall rise in the cost of building materials for construction, of IAY unit is enhanced to Rs. 20,000 and Rs. 22,000 for plain and difficult areas respectively. Broadly about 30 lakhs houses have been constructed under IAY so far with an expenditure of Rs. 3,500 crore. The Programme Evaluation Organization (PEO) of the Planning Commission 1992 under took an evaluation study. The major findings of PEO on the IAY scheme are as follows. 1. The number of household identified for allotment was almost coterminous with the number of houses constructed/allotted. 2. Even though the guidelines prohibit involvement of contractors in the construction of houses, their involvement was reported in 16.6per cent of the houses constructed. Further none of the villages reported associations of voluntary organizations in the construction of houses through the same was provided in the guidelines.

25 3. Of the total houses constructed in 14 selected states (10.3 lakhs) about 50 per cent were only in three States - Tamilnadu, Uttar Pradesh and Bihar. The average cost of construction of a house, taking all the selected villages together, worked out to about rupees About 90 per cent of the houses were constructed in clusters in and around the main habitation of the village. 5. The quality of 50 per cent houses constructed rated as good per cent houses allotted under the Yojana were occupied. 7. About 84 per cent households expressed satisfaction 1 partial satisfaction with the houses allotted to them. The study reveals the performance of IAY to some extends and highlights the weaknesses, which need to be addressed. Such as lower participation of villagers in the construction activity. 50per cent of the houses constructed are stated to be of good quality and so on. PRADAN MANTRI GRAMODAYA YOJANA ( ) The Ministry of Rural Development recently introduced another scheme to mitigate the rural housing problem known as Pradan Mantri Gramodaya Yojana (Gramin Awaas), while the ministry is already implementing schemes including the IAY, in the sphere of rural housing, considering the magnitude of the task it has been felt imperative to supplement the efforts being made in this direction through the introduction of a comprehensive scheme which aims at reducing shortage of houses for Below Poverty Line (BPL) families in

26 rural areas and also for assisting the healthy development of the habitat in this areas. Features 1. Target Group- SCs I STs, BPL categories in rural areas freed bonded labourers and non SCs I STs BPL categories (not more than 40 per cent in the financial year) 2. Identification of beneficiaries - Number of houses to be constructed in the District Rural Development agencies I Zilla Parishat - Grama Sabha will select the beneficiaries in Grama Panchayat. 3. Allotment of houses - Dwelling units will be in the name of female member of the beneficiary household or both in the name of husband and wife. 4. Involvement of beneficiaries - Same as in the case of IAY. 5. Ceiling of contractor assistance - IAY 6. Mode of implementation -1AY. 7. Release of funds - The funds of the scheme will be released to states in two instalments by the Union Ministry of Finance on the recommendations of the Union Ministry of Rural Development. The funds for the second instalrnent will be released after Utilization Certificate I Audit Report is received. During the year 2000 to 2001, however the second instalment would be released wtthout insisting on completion of this procedures. 8. Monitoring and Evaluation - The State Government should prescribe periodical report and returns through which the performance of PMGY in the district would be closely monitored and also obtain appropriate

27 reports and returns from DRDA. These reports and returns would be submitted to government of India by the States. RURAL HOUSING AND UNION BUDGET "Housing for all has been identified as a priority area in the Agenda for governance. For the coming financial year, a goal of providing 25 lakhs dwelling units in rural areas has been fixed. Schemes for meeting the needs of different sections of the society have been prepared. 1. Under IAY,it is proposed to provide over 12 lakhs houses for the people below poverty line. For this an amount of Rs crore is being provided in the budget. 2. For families with an annual income of below Rs per annum, assistance will be provided for construction of one-iakhs houses under Credit Cum Subsidy Scheme. An amount of Rs.92 crore is provided in the budget for this scheme. 3. The NHB will provide refinance to banks and Housing Finance Companies for construction of 1.5 lakhs houses under Golden Jubilee Rural Finance Scheme 4 To further improve the availability of housing finance in rural areas Government has decided to provide equity support of Rs.350 crore to HUDCO during the Ninth Five Year Plan Period. Of this, Rs.200 crore have already been released and it is proposed to release Rs.100 crore in the next year With these funds HUDCO will be able to finance the

28 construction of about 9,00,000 houses in the rural areas in the coming financial year. 5. The Co-Operative sector and voluntary agencies will support the construction of another 1.5 lakhs houses. RURAL HOUSING SCENARIO IN KERALA Kerala has been in the forefront in many fields such as literacy, health and innovations in housing, especially cost effective housing. Table No. 3.9 indicates that about 12 per cent of the population in lndia has no roof over their head. Among the rest who own houses, people who own pucca house comprise only per cent. The situation is marginally better in Kerala compared to the national scene. Table No. 3.9 Housing Shortage and Details regarding the Types of Houses in Kerala and India (in Percentages SI.. Nn --. Particulars Kerala India 1 Estimated housing shortage Household living in pucca houses Households living in semi pucca houses ( 4 Households living in kutcha houses Source: Census of lndia However with nearly 314 of the Indian population (74.28 cent) living villages as is evident from the Table No and as far as the state is concerned the rural population amounts to per cent.

29 Table No Distribution of Rural Population in Kerala and lndia ^ Particulars I No. I Kerala L lndia The projected housing shortage by 2000 A.D is about 410 lakhs housing units of which 62.2 per cent (255 lakhs) fall in rural areas due to increase in rural population. The population in lndia at present covers more than 100crore as against 84 crore in 1991 and nearly about 4 crore in Kerala at present, as against 2.90 crore in Therefore the urgency of rural housing in all habitats planning programmes in the State hardly needs to be emphasized. The Nirrnithi Movement, which was started and developed in Kerala, is propagating cost effective, eco - friendly building technology in the country has a viable approach towards solving the problem of growing housing shortage in the country Strategies 1 Population 2 Rural Population 3 Percentage of Rural f opulation Source: Census of lndia Despite the effort made by the government the problem of housing, especially rural housing remains unsolved. Thus a new set of strategies has to be followed in order to solve the problem of rural housing. Providing house sites and finance - There should be the provision of house sites to the weaker section along with financial assistance consisting of loan and subsidy components. Finance must be available for up gradation, expansion and renewal of existing houses. I

30 Need for a Sound Land Policy Availability of land, its timely development with requisite infrastructure facilittes and service is of prime importance for facilitating a sustained growth of housing activity. In this regard formulation and implementation of a sound land policy is of at most importance. Cost Reduction Effort to effect reduction in the cost of construction by supplying new building materials, introducing new techniques in construction and production processes using beneficiaries' labour and reusing building materials etc. Thus there is a need to tie up rural housing scheme with building centres as to promote low cost housing and locally available material and appropriate technology. There should be separate ~ ral housing policy to solve the problem of housing the rural poor. Before the formulation of such a policy, political parties, communities, target groups, PRl's, co-operatives, governmental and non- governmental organizations must be consulted. For its effective implementation strong political will is required. Comprehensive survey in the countryside should be conducted to know and find out the real conditions and shortage of rural housing. This work would be assigned to NGOS. Sufficient loan amount free from corruption at a low rate of interest ought to be made ava~lable to the genuine rural poor identified and selected in the meeting of the concerned Grama Sabha.

31 Under the new set up the financial assistance can be routed through the Grama Panchayat and it should ensure proper utilization of funds for the construction and improvement of rural houses. More emphasis has to be on quality than merely going in for quantrty while constructing or improving the houses. Providing basic amenities including sanitation is essential and should be incorporated in the National Housing Policy itself; this only gives an appropriate meaning to the 'house' in the real sense. Co ordination of the activities all concerned agencies, organizations and departments should be made to overcome the problems of overlapping and duplication in view of the magnitude of the problem. Fund for renovation of existing shelter is another important criteria that should be included in housing finance policy. To achieve the goal of shelter for all by 2001, there is need to speed up the pace of progress in this direction through concerted efforts. The guidelines issued recently relating to Centrally Sponsored Rural Housing Scheme by the Ministry of Rural Development should be followed in letter and spirit so as to avoid inadequate coverage, paucity of funds and poor access to the institutional finance. Separate Rural Housing Policy is essential to deal with the existing problem and for this a strong political will is needed. Regular monitoring and follow-up action are required to achieve the objective of solving the problem of housing for the rural poor. Evaluation by the

32 voluntary agencies can be of great use in bringing improvements in this noble task. Promotion of more innovative systems of construction, which produce quicker results in realizing the physical targets within a fixed time frame improve the quality of housing stock by adopting affordable and appropriate construction techniques. Housing for the poor is a critical factor to poverty alleviation. A decent house can solve many problems for the households. However housing is only a necessary condition. Housing alone cannot raise the poor households from the poverty trap. Poor household need basic infrastructure facilii along with housing and employment opportunities to improve their living condition. Hence in any policy for improving housing condition for the poor people can have access to a total package to improve their quality of life where housing would constitute an important component amongst others. Housing is just one step in capacrty building of poor households and other step need to follow for maintaining such capacity building, which include other basic facilities. In addition, the other important issue in this regard is the quality of housing, its design and affordability. The success of rural housing problems depends on people's active participation with a view to controlling the population. Rural unemployment and rural poverty alleviation programme want much more attention. Low cost technology for house building should be explored..the beneficiaries must be prepared to offer physical labour. They must be educated on the local availability

33 of material for constructron and also facilities available to get finances for rural housing. Equally important is proper maintenance of the newly constructed houses under the Government Schemes. Besides, the housing construction should be declared as an industry and relaxation in various taxes should be allowed for encouraging investment and donation towards rural housing. Last but not the least is the fact that mere planning is not enough. It is the implementation, which counts.