Day 1 Session 1 'Rajiv Awas Yojana - Slum Free India Mission' by P.K.Mohanty (Joint Secretary and Mission Director JNNURM, MoHUPA)

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1 Cities Alliance Project Output Day 1 Session 1 ' - Slum Free India Mission' by P.K.Mohanty (Joint Secretary and Mission Director JNNURM, MoHUPA) India International Workshop: Scaling up Upgrading and Affordable Housing: From National Policies, to State Programs, and City-Wide Slum-Free Interventions P This project output was created with Cities Alliance grant funding.

2 Ministry of Housing & Urban Poverty Alleviation Government of India, New Delhi Slum-free India Mission Mission Directorate, Ministry of Housing & Urban Poverty Alleviation Government of India 1

Address by President of India to Joint Session of Parliament, 04 June, 20 09 My Government proposes to introduce a Rajiv Awas Yojana for the slum

The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the which

3 Address by President of India to Joint Session of Parliament, 04 June, My Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor on the lines of the Indira Awas Yojana for the rural poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. My Government's effort would be to create a slum free India in five years through the. 2

Prime Minister s Address to the Nation on 15 th August 2009 We had started the Jawaharlal Nehru National Urban Renewal Mission for the urban areas. We will accelerate this programme also.

4 Prime Minister s Address to the Nation on 15 th August 2009 We had started the Jawaharlal Nehru National Urban Renewal Mission for the urban areas. We will accelerate this programme also. Today, lakhs of our citizen live in slums which lack basic amenities. We wish to make our country slum free as early as possible. In the next five years, we will provide better housing facilities to slum dwellers through a new scheme, Rajiv Awas Yojana. 3

5 President s announcement gives us: A Bold New Vision: A Slum-free India in Five Years Time Clear Policy Direction for Inclusion: Assign property rights to people living in slum areas The Programme Outline for slum dwellers based on a whole city approach 4

6 Slum-free India Mission The Approach For a Slum-free India, it is not sufficient to address existing slums It is as important to tackle the basic reasons behind the creation of slums: Urban land and housing scarcities that make the market unaffordable, not only to the BPL An unrealistic town planning model that does not recognise poverty and forces more than a quarter of urban population into extra-legal vulnerability 5

7 The Approach For a Slum-free India, RAY has to gather: Multiple Partners Institutional Funds State Government Commitment Close Involvement of Urban Local Body Community Participation and, offer enabling Central Government Support 6

8 Aspects Important to Strategy Design Size of the Problem Scarcity of Land at Affordable Prices Scarcity of Credit to the Poor in the Informal Sector Lack of Private Sector Participation so far Technology for Mass Housing Construction 7

9 Aspects Important.Size The Size of the Problem Slum Population Estimated 62 million in 2001, not counting those in nonnotified, non-recognised clusters with less than 60 household Urban Poor Population An estimated 81 million in NSSO 61 st Round Housing Shortage 24.7 Million in 2007, 99% of it estimated for the poor 8

10 Aspects Important.. Land Land Availability can be enhanced by In situ slum upgradation: PPP, Slum-dwellers Cooperative, Beneficiary-driven, Government-driven Creation of virtual land Use of FSI/TDR/Incentive zoning as resource Encouraging affordable housing by PPP on private holdings subject to incentives by Government Reservations of land/housing for EWS/LIG housing in all new developments 9

11 Aspects Important.Credit Credit does not flow for housing the poor Banks look for credit history and don t give loans to slum dwellers even priority sector lending does not reach them There are no housing microfinance institutions The institutional framework for social housing has become dysfunctional 10

12 The Proposed Strategy Design State-led Action and State-led Pace States to Prepare their Plans of action for slum free status Slum-free State Plan to be based on Slum-free City Plans Centre to appraise and clear Central releases to follow enactment of legislation assigning right to a dwelling space to all slum dwellers Capacity building support by Centre. Centre to create enabling environment and a menu of financial support for states to choose from. 11

13 Directions (i). Upgradation of Slums as well as Measures to prevent New Slums Whole City Approach (ii) Legislative Framework for Property Rights to Slum- Dwellers (iii) Easing Credit Availability for the Urban Poor for Housing, including Interest/Capital Subsidy - Enable Demanddriven Housing (iv) Public-Private Partnerships for Affordable Housing (v) New Paradigm of Inclusive Planning - Reservation of Land for Housing the Poor in City Master Plans and Security of Land Tenure to Slum-Dwellers. 12

14 State Plans of Action for Slum-free Cities The State POA in two parts Part I Enacting Legislation for Property Rights and Plan for Upgrading all Existing Slums, notified or not, in a Whole City Approach Part II Creation of conditions to deter new slum formations by tackling: the Price distorting land and housing shortages; the Exclusionary town planning norms; Planning for earmarking of space for slum dwellers/urban poor 13

15 Preparatory Tasks Slum Survey, Slum MIS, GIS Mapping, GIS-enabled Slum Information System Support to States Slum-free City and Slum-free State Cells with Experts Model Legislation on Property Rights to Slum Dwellers and Legal Framework for Slum-free Cities Choice of Slum Redevelopment/Rehabilitation Model Focus on PPP where feasible; Involve NGOs/CBOs Preparation of Slum-free City Plan based on Slum Redevelopment / Rehabilitation & Prevention Plans Developing an Inclusive Urban Planning Paradigm - Amending Town Planning, Urban Development, Muniicpla, Revenue & Other Laws Easing Flow of Credit to the Urban Poor - Design of Housing Mortgage Guarantee Fund. 14

16 Addressing Risks Credit may still not flow to the EWS- Banks are fearful of loan waivers, difficulties in foreclosing mortgages of the poor, high costs of collection Private sector participation may not materialise- Developers will return to HIG as soon as the market upswing starts States may have difficulty assigning land for slums Many slums are reservations, untenable locations, on private land and on central lands; many states have adopted auctioning of lands as a policy Lack of an institutional framework for social housing may delay execution State Housing Boards mostly dysfunctional Resistance from Slumlords/slum-dwellers There are huge vested interests in slums 15

17 Thank You 16

Ministry of Housing & Urban Poverty Alleviation. Ministry of Housing & Urban Poverty Alleviation Government of India. JnNURM & RAY

Ministry of Housing & Urban Poverty Alleviation. Ministry of Housing & Urban Poverty Alleviation Government of India. JnNURM & RAY Government of India JnNURM & RAY Faridabad, 16 th March 2012 1 MoHUPA: Key Functions & Programmes Formulation of Housing Policy and Programs Matters related to Human Settlements & Urban Development including