To effectively meet the affordable housing demand by 2022, the state needs to revamp its entire approach to this issue
Burgeoning urban population and unplanned urbanization have significant implications on the efficiency of urban services such as affordable housing. The Government has considered affordable housing intrinsic to urban poverty alleviation. But the lack of an institutional mechanism for inclusive planning under such schemes reduces their efficiency.
Affordable housing is often narrowly looked at as constructing a certain number of housing blocks to accommodate a specific number of eligible households. What is commonly missed out in understanding the provision of affordable housing is the need to create habitable spaces beyond the mere construction of housing blocks. These habitable spaces provide for holistic development, as they comprise not just living units but a scope for better livelihood and society.
The proportion of population living in urban areas has increased from 27 per cent to 31 per cent between 2001 and 2011. Such an increased pace of urbanisation poses new housing challenges like growing gap between housing demand and supply, affordability and the need for effective poverty alleviation plans.
Housing shortage in urban areas is estimated to be as high as 20 million units by 2022. The Technical Group on Urban Housing Shortage for the 12th Plan had estimated urban housing shortage in 2012 at 18.78 million units. Thus, the projected housing shortage in 2022 can be much higher than the Government’s plans for provision of 20 million units.
The housing sector is considered an ‘engine of growth’, which has immense potential of giving a push to the economy because of its link with the construction sector, thereby impacting employment and livelihood. Therefore, housing assistance can make a significant difference in the economic well-being of low-income group households, both in rural and urban areas.
In order to meet the urban housing demand, the Ministry of Housing and Poverty Alleviation has launched the Pradhan Mantri Awaas Yojana (Urban) to provide “Pucca” house for every family by 2022. PMAYU is a Centrally-sponsored scheme (except the credit link subsidy component), which encourages States to decide their own policies, as land is a State subject.
The scheme covers 500 Class I cities across three phases. Under this scheme, the Ministry has so far sanctioned central grant of Rs7,545.65 crore for 746 projects with 5,08,902 houses for the economically weaker sections in 544 cities across 13 States. However, urban housing in India has a long way to go in terms of flexible and sensitive design strategies that can be achieved through active participation of all entities involved especially the beneficiaries.
Inspite of heavy current and past investments, the irony of urban housing shortage is that more than 20 per cent of the housing blocks constructed under various government schemes remain vacant. This is largely attributed to unsuitable design as illustrated by higher occupancy in projects designed based on the beneficiaries’ inputs. The Central and State Government affordable housing schemes focus on providing pucca houses but are insensitive to habitant’s design needs and requirements. Such blocks are insufficient for larger households, lack common spaces and have a higher cost of living.
A big proportion of the allocation for urban housing schemes also focuses on certain social segments like BPl households, leading to inadequate focus on low income households just above the poverty line, which comprise a big proportion of the population with housing needs.
There are also large portions of Government land alongwith Railways and Defence land that is under-utilised. For example, cantonments, some of which are located in the central areas of populous cities, possess surplus land. The Government should look at releasing such under-utilised land.
To meet the total housing demand by 2022 requires a combination of technological subsidies and greater engagement with the people especially low income groups, along with innovative financing mechanisms and optimal utilisation of resources.
A meaningful policy framework for affordable housing requires housing to be addressed in totality and not merely as an issue of attaining ‘secured housing units’. This can help in making the urban growth process more inclusive wherein urban poor would be empowered partners in the development process.
(The writer is a research associate with Swaniti Initiative, New Delhi)