Challenges Facing Urban India: Housing &

Sanitation For the Urban Poor

by

Dr. Harjit S. Anand

Secretary
Ministry of Housing & Urban Poverty Alleviation
Government of India
Ph: + 91 9818112427
email: secy-muepa@nic.in/hs.anand@yahoo.com
1
 Structure of Presentation

 The Urban Setting

 National Urban Housing & Habitat Policy, 2007
 Jawaharlal Nehru National Urban Renewal Mission
 Interest Subsidy Scheme for the Urban Poor
 Integrated Low Cost Sanitation Scheme
 Urban City-wide Infrastructure
 Urban Livelihoods
 The Right to Shelter: converting dream into reality

2
 “Space and light and order
These are the things that men need
Just as much as they need
Bread or a place to sleep.”

Le Corbusier

3
The Urban Setting

4
 Urbanisation and Development
“Urban” in India is defined as a human settlement with
a minimum population of 5000 persons, with 75% of
the male working population engaged in non-
agricultural activities and a population density of at
least 400 persons per sq. km. Further, all statutory
towns having a Municipal Corporation, Municipal
Council or Nagar Panchayat as well as a Cantonment
Board are classified as “URBAN”

The Urban Setting 5

 Urbanisation and Development
 99% of the housing shortage of 24.7 million at the end
of the 10th Plan pertains to the Economically Weaker
Sections (EWS) and Low Income Groups (LIG) sectors.
 National Sample Survey Organisation (NSSO) 61st Round
reports that the number of urban poor has risen by 4.4
million persons, between 1993-94 to 2004-05.
 From 12 in 1981 with 26.8% share of the total urban
population, the number of million plus cities has
increased to 35 in 2001 with 37% share of the total
urban population.

The Urban Setting 6

 Rural to Urban shift of labour
 It is important to highlight the fact that the informal
sector in urban areas is growing exponentially. In the
decade 1991-2001, workers classified as “marginal
workers” registered an increase of 360% as compared
to an increase of only 23% for workers classified as
“main workers.” As a consequence, the ratio of
marginal workers to total workers increased from
2.2% in 1991 to 7.9% in 2001

 The proportion of female workers to total workers

rose from 14.3% in 1991 to 16% in 2001

The Urban Setting 7

 Urban India: Statistical Profile 2001

• Urban Population 286 Million

• Urban Population % 28%
• No of Urban Agglomerations/Towns 5,161
• No of Metropolitan Cities 35
• Metropolitan Population Share 38%
• Share of Cities with Population > 50000 74%
• Urban Contribution to GDP 60%

The Urban Setting 8

 Urban India: Slums & Poverty Scenario

Slum Population 1991 : 42 Million

2001 : 62 Million
Growth in Urban Population
1991-2001 : 58 Million
Growth in Slum Population
1991-2001 : 20 Million
Poverty Scenario: Urban BPL Population
1973-1974 : 60 Million
1999-2000 : 67 Million

The Urban Setting 9

Share of Slum Population in City Population:
Select Cities
Mumbai 54%
Faridabad 46%
Aligarh 45%
Meerut 44%
Warangal 43%
Amaravati 43%
Raipur 37%
Nagpur 36%
Guntur 33%
Kolkata 32%

The Urban Setting 10

 Urban India: Growth in Population &
Slum Population
 Decadal Total Population Growth 25%

 Decadal Urban Population Growth 40%

 Decadal Metro-Population Growth 79%

 Decadal Slum Population Growth 70%

The Urban Setting 11

 Poverty and Housing needs
 According to the Census 2001, 61.82 million persons or
23.1% of the urban population resides in slums. During the
11th Plan, the Group estimated that the total housing
requirement (including backlog) will be to the tune of 26.53
million units for 75.01 million households.

 One fourth of the country’s total urban population,

numbering 80.7 million persons is below the poverty line.

The Urban Setting 12

 Housing Scenario in India
Access to Housing 2001

Household having: %age of Households

No Exclusive Room 2.3
One Room 35.1
Two Rooms 29.5
More than Two Rooms 33.1

The Urban Setting 13

 Total Housing Shortage
Housing shortage at the beginning 24.71 million
of 11th Five Year Plan (1.4.2007) dwelling units
Additional Housing Requirement 1.82 million
for the 11th Plan ( 2007-2012) dwelling units

Total housing requirement during 26.53 Million

11th Plan Period including the carried dwelling units
over housing shortage

The Urban Setting 14

 Category-wise Housing Shortage
Estimated Urban Housing Unit Shortage as
on 1.4.2007:
Total : 24.71 m 100.00%
EWS : 21.78 m 88.14%
LIG : 2.89 m 11.69%
MIG&HIG: 0.04 m 0.16%

More than 99% shortage is for EWS/LIG segments

The Urban Setting 15

 Financial Investment Required for
Overcoming Shortage
For 24.71 million Dwelling Units. Rs.14719.50
million
Additional housing requirement Rs.21412.31
(7.26 million Units) during 11th million
Plan
Total Rs.36131.81
million

The Urban Setting 16

 Quality of Housing Stock
50 47.49
Pucca 41.17
45
Semi-Pucca
40
Kutcha
No of Houses (in Million)

35 29.79
30
25
18.09
20
15 11.8 9.16
6.8 8.08
10 4.35 6.21
2.35 3.11 3.3 2.7 2.18
5
0
1971 1981 1991 2001 2007
(18.5) (28) (39.3) (52.06) (58.83) *

Year

The figure in Parenthesis is the total housing stock (in Million)

* Source: Technical Group on Estimation of Urban

Housing Shortage, NBO, MoHUPA

The Urban Setting 17

 23.43

19.86 20.07
19.44
17.24
15.20
12.65 12.82
11.65
9.70
7.25 7.89
6.19
4.66
1.95

Source: Registrar General of India

The Urban Setting 18

 Growth of Slums

61.8

46

28

Source: Annual Report 2006-07, MoHUPA

Slum Population as %age of total urban population is given in parenthesis

The Urban Setting 19

 Growth of the Urban Informal Sector
 It is important to highlight the fact that the informal sector
in urban areas is growing exponentially. In the decade
1991-2001, workers classified as “marginal workers”
registered an increase of 360% as compared to an
increase of only 23% for workers classified as “main
workers.” As a consequence, the ratio of marginal
workers to total workers increased from 2.2% in 1991
to 7.9% in 2001 .
 The proportion of female workers to total workers rose
from 14.3% in 1991 to 16% in 2001

The Urban Setting 20

 Balanced Regional Development
 The way to bring about a symbiotic development
between rural and urban areas is by adopting “a
Regional Planning approach.”
 In view of the fact that 50% of India’s population is
forecasted to be living in urban areas by 2041, it is
necessary to develop new integrated townships.
 Development of sustainable habitat is closely related to
the adoption of ‘the Regional Planning approach’ while
preparing Master Plans of towns/ cities, District Plans
and Regional/Sub-Regional Plans.
 The new Habitat Policy reaffirms the importance of small
and medium urban agglomerates/towns which have
potential for future urban growth.

The Urban Setting 21

National Urban Housing & Habitat Policy 2007

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 VISION
 Affordable Housing for All
 Spotlight on EWS Housing for promoting social
inclusion
 Special focus on SC,ST,BC, Minorities & empowerment
of women within ambit of urban poor

National Urban Housing & Habitat Policy 200723

Public partnerships with

 The Cooperative Sector

 The Labour Housing sector
 The Employee Welfare Housing Sector
 The Employer Housing Sector ,and
 The Private Sector

National Urban Housing & Habitat Policy 200724

 Focus Areas

The new policy considers the 74th Amendment

Act in terms of preparation of District Plans by
District Planning Committees (DPCs) as a vital
determinant of systematic urban planning.

National Urban Housing & Habitat Policy 200725

 Increase Supply of Land
 Facilitating accessibility to serviced land and
housing with focus on economically weaker
sections and low income group categories.

 Suitable restructuring for enabling both

institutions at the State and Centre levels as well
as the private sector for increasing supply of
land.

National Urban Housing & Habitat Policy, 2007 26

“How wrong it is for a women to expect the
man to build the world she wants rather
than to create it herself”
Anais Nin

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 Special Provision for Women

Addressing the special needs of women

headed households, single women,
working women and women in difficult
circumstances in relation to housing
serviced by basic amenities.

National Urban Housing & Habitat Policy 200728

 Public-Private Partnerships

Forging strong partnerships between

public, private and cooperative sectors for
accelerated growth in the Housing Sector
and sustainable development of habitat

National Urban Housing & Habitat Policy 200729

 Healthy Environment
 Developing cities/towns in a manner which
promotes a healthy environment, encouraging
use of renewable energy resources and
ensuring effective solid waste management in
collaboration with persons involved in recycling
activities.
 Protecting our cultural heritage and architecture
as well as promoting traditional skills with
suitable adaptation to modern technologies.

National Urban Housing & Habitat Policy 200730

Integrated Townships, Urban Extensions
& SEZs
 Develop Greenfield towns & integrated urban
housing extensions of existing towns with
complementary infrastructure or Special
Economic Zones (SEZs) with both FDI and
national investments in housing and
infrastructure.

 Ensure that such fully integrated housing

projects are well connected by MRTS corridors.

National Urban Housing & Habitat Policy 200731

 Research & Development
Organisations
 Undertake research to respond to different
climatic conditions with a focus on
transition from conventional to innovative,
cost effective and environment friendly
technologies
 Intensify efforts for transfer of innovative
technologies and materials from lab to
field

National Urban Housing & Habitat Policy, 200732

 Action Plan
 The Central Government will encourage and support the
States to prepare a State Urban Housing and Habitat
Policy and also a State Urban Housing & Habitat Action
Plan
 In order to augment sustainable and affordable housing
stock along with related infrastructure like water,
drainage, sanitation, sewerage, solid waste
management, electricity and transportation, the Action
Plans of States/UTs should focus on accelerated flow of
funds for housing (including various cost-effective slum-
related options) and infrastructure

National Urban Housing & Habitat Policy 200733

 JNNURM vision for the urban poor:
BSUP & IHSDP
Integrated package of Housing & Basic Services

a) Affordable housing with security of tenure

b) Basic physical services
c) Basic social services through convergence &
d) Linkage with urban poverty alleviation.

The JNNURM Initiative 34

 JnNURM at a Glance
No. of Houses Sanctioned 1.046 million
No. of Houses under Progress 0.265 million
Budget for 2007-08-Rs.1991 Crores 99.7 %
(BSUP+IHSDP) achieved
Urban Reforms: Earmarking of 25% of 27 cities
Municipal Budget as BSUP Fund; Timeline achieved
Target of 27 cities

Urban Reform: Earmarking of 20-25% of 16 cities

developed land for EWS/LIG; Timeline achieved
Target of 16 cities

The JNNURM Initiative 35

Eco friendly design & layouts for the Urban Poor

Inclusive Planning & Architecture

i. Minimum 25 Sq mtrs Carpet area under BSUP and Covered area

under IHSDP,
ii. Minimum provision of Two rooms, Kitchenette, Toilet & Bath,
iii. Vector-free housing layout,
iv. Provision of Basic Physical Amenities: Water Supply,Drainage,
sanitation, Roads/Streets, street Lighting, Solid Waste
management & appropriate Green Spaces,
v. Provision of Social Infrastructure: Community Centre, Livelihood
Centre & Informal Sector Market, and
vi. Eco friendly Habitat which promotes Social Cohesiveness.

The JNNURM Initiative 36

 Advocacy and Networking with Stakeholders
 Mayors’ Forum on eradication of Urban Poverty & City
Mangers’ Forum on Urban Poverty Alleviation &
Livelihood Development launched in March 2007.
 Researchers’ Colloquium on Urban Poverty launched in
March 2007 for promoting knowledge management & e-
networking amongst eminent researchers.
 Research initiated on Key Themes concerning the Urban
Poor : Land Tenure, Affordable Housing, Water,
Sanitation, Education, Health, Social Security, Micro-
finance, Livelihoods, Skill Development & Inclusive
Planning for Housing the Poor.

The JNNURM Initiative 37

 Advocacy and Networking with Stakeholders
 National Programme on Capacity Building for Urban
Poverty Alleviation launched in March 2007.
 Network of 8 National Resource Centres on Urban
Poverty, Slums & Housing established: YASHADA,
Pune; AIILSG, Mumbai; CGG, Hyderabad; NIUA, New
Delhi; HSMI, New Delhi; EDI, Ahmedabad; ASCI,
Hyderabad; NBO, New Delhi.
 Linkage of NRCs with State & Regional Training
Centres.

The JNNURM Initiative 38

 Interest Subsidy Scheme for Urban Poor
 The Ministry is introducing a new scheme for providing
interest subsidy of 5% on housing loans by banks/HFCs &
MFIs for EWS/LIG segments of society for construction of
houses
 It is aimed at providing 400,000 Dwelling Units during the
11th Five Year Plan.
 The total interest subsidy requirements for the construction
of 400,000 houses for EWS/LIG segments financed during
the next 4 years (2008-12) is projected at Rs. 1100 crores.

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 Integrated Low Cost Sanitation
 Total cost of a Low Cost Sanitation Unit with
superstructure is pegged at Rs.10,000 in plains &
Rs.12500 in hilly or difficult terrains.
 Subsidy by Central Govt. is 75%; Subsidy by State Govt.
is 15%; & Beneficiary contribution is 10%.
 Strong involvement of NGOs.
 Adoption of a Citywide Approach.
 Innovative Sanitation Systems.
 Allocation of Rs.600 crores for urban areas during the
11th Plan Period.

Integrated Low Cost Sanitation 40

Urban Infrastructure Challenges

41
 Mandatory Urban Reforms
Mandatory (ULB Level) Mandatory (State Level)
 Adoption of double entry system of accounting  Implementation of decentralisation
 Introduction of e-Governance measures as envisaged in
Constitution 74th Amendment Act
 Reform of property tax with GIS-based Tax Mapping

 Internal earmarking for basic services to the urban

 Rationalisation of Stamp duty to
poor bring it down to no more than 5%
 Provision of basic services to urban poor
within next 7 years

 Enactment of Community
Participation Law to institutionalise
citizen participation & Area Sabha

 Assigning or associating elected

ULBs with “city planning function”
– Accountability platforms for
parastatals

Urban Infrastructure Challenges 42

 Optional Urban Reforms
(State, ULB Level & Parastatal Agencies)

 Revision of bye-laws to streamline the approval process for

construction
 Simplification of legal and procedural frameworks
 Introduction of Property Title Certification System in ULBs.
 Earmarking at least 20-25% of developed land for EWS and
LIG category
 Computerised process of registration of land and property
 Revision of bye-laws to make water conservation measures
in all building
 Bye- laws for reuse of recycled water
 Administrative reforms
 Structural reforms
 Encouraging private-public partnership

Urban Infrastructure Challenges 43

 JNNURM Initiative
 Spatial identification of shortages.
 City Development Plan : Prioritising investments
in low-income areas
 Urban Infrastructure and Governance (UIG)
 Urban Infrastructure Development Scheme for
Small and Medium Towns(UIDSSMT)

Urban Infrastructure Challenges 44

 JNNURM Initiative
Progress as on 31st March 08
CDP All 63 cities have been received and appraised

MOAs 62 MoAs signed (1 pending – Jamshedpur)

DPRS received 713 DPRs

Projects approved by CSMC 324 Projects

Total Value of Projects Rs. 30,135.23 Cr

approved

ACA Committed Rs. 14,612.46 Cr

ACA released Rs. 3,882.58 Cr

Urban Infrastructure Challenges 45

 Progress of Reforms
State level
 Maharashtra has repealed Urban Land
Ceiling and Regulation Act, Andhra
Pradesh also. West Bengal has
committed to repeal ULCRA next year,
 26 States have repealed ULCRA till
date.
 Assam, Tripura, Gujarat & Maharashtra
have enacted Public disclosure Law,
whereas Tamil Nadu and Chandigarh
are in progress
 Assam & Gujarat have enacted
Community Participation Law
 States of Sikkim, Goa, Puducherry,
Jharkhand and Tripura have already
rationalised Stamp Duty to 5 % or
below.
Urban Infrastructure Challenges
ULB level
•33 Cities have undertaken Internal
Earmarking of Funds for Services to
Urban Poor
•Improved Financial Management -14
cities have accomplished Double Entry
Accrual Based Accounting System
•e-Governance reform accomplished in
7 cities (Hyderabad, Vishakapatnam,
Bhopal, Coimbatore, Madurai, Asansol,
Kolkata)
•10 Cities have improved property tax
coverage to above 85 %.
46
“What is the city but the people.”
William Shakespeare

Urban Livelihoods 47
What is the Informal Sector?
The Parable
A story of two baskets

48
Urban Livelihoods
 The Trinity
 Segment of the workforce working in the
informal sector
 Percentage of population living in slums &
 Percentage of population below the
poverty line.

Urban Livelihoods 49
 Poverty Alleviation Programmes
The Historical Perspective
 The UNICEF led UBS Experiment
 Nehru Rozgar Yojana
 The scheme of Urban Basic Services for the
Poor (UBSP) &
 Swarna Jayanti Shehri Rozgar Yojana
(SJSRY).

Urban Livelihoods 50
 Versatility Instruments
 Promotion of micro enterprises with capacity
building inputs
 Promotion of wage employment through creation
of socially and economically useful public assets
 Creation of jobs through housing and shelter
upgradation
 Skills training and promotion of employability in the
private sector &
 Entrepreneurship development programmes.

Urban Livelihoods 51
 Supply-side Dynamics
 Provision of skills training
 Provision of entrepreneurship training
 Provision of common facilities
 Provision of quality marking facilities
 Joint purchase of raw materials
 Researched design inputs &
 Setting up of micro business Estates –
production, services & business.

Urban Livelihoods 52
 Demand-side Dynamics
 Conduct Market Surveys
 Discovery of niche segments
 Matching entrepreneurs to niche segments
 Unique selling propositions (USPs)
 Marketing Assistance &
 Developing Competitive Marketing Mix.

Urban Livelihoods 53
Employment Generation and Employability

 Launching little entrepreneurial boats

 SEAS : Small Enterprise Advisory Services
 Advantages of Localisation
 Advantages of Solidarity : scale of production
 Matching demand for employment with supply
of skilled workers, supervisors and managers
 Skill Development Mission &
 Non profit company for promotion of Skill
Development : Private Sector Employment.

Urban Livelihoods 54
The Right to Shelter - Converting dream into reality……

55
 Social Housing

 The two lowest monthly per capita

expenditure classes
 Saving capacity of EWS & LIG
 The subsidy gap &
 Converting need to demand.

The Right to Shelter - Converting dream into reality……56

 Fiscal incentives
 Income Tax benefit for investment in housing;
 Section 80 IA of IT Act exempts 100% income
from infrastructure projects from income tax for
ten consecutive years. Integrated Township
Development to be brought within definition of
Infrastructure &
 Rental Housing : 30% deduction from housing
income u/s 24(a) is available for repair,
maintenance, collection and insurance etc.

The Right to Shelter - Converting dream into reality……57

 Fiscal incentives
 U/s 36(1)(viii) of IT Act: 20% of profit derived from
business of providing long term housing finance is
deducted from income provided it is carried to special
reserve,
 U/s 36(1)(viia) of IT Act : Deduction for bad and
doubtful debts equivalent to 10% of the doubtful and
loss assets is available to banks. Extend provision to
Housing Finance Companies &
 Depreciation on Employee Housing : Higher rate of
depreciation (say 30%) should be introduced on
residential accommodation if built by the employer for its
employees.

The Right to Shelter - Converting dream into reality……58

 Increasing Supply of Rental Housing

 Amendment of Rent Control Acts,

 Promulgation of Service Apartment Acts,
 Flexibility in relation to selling a floor of a
residential unit,
 Rest houses in residential areas &
 Paying guest accommodation.

The Right to Shelter - Converting dream into reality……59

 Innovative banking and financial
instruments
Housing Bonds – the Sudarshan Chakra
• Permission to HUDCO and National Housing Bank
to float Housing Bonds with the benefit of 54 EC
exemption from Capital Gains,
 National Housing Bank to act as a refinance
institution,
 75% of the bond money to be utilized for EWS and
LIG housing &
 Permission to individuals for purchasing housing
bonds with redemption in the form of EWS, LIG
and HIG housing
The Right to Shelter - Converting dream into reality……60
 Regulation of Real Estate Development

 Safeguarding the rights of an Allottee vis-à-vis

cost escalation,
 Safeguarding the rights of an Allottee in relation to
time over-runs,
 Safeguarding the Allottee in relation to provision
of green spaces and social infrastructure &
 Safeguarding the Allottee in relation to a healthy
and clean environment combined with basic
sports facilities.

The Right to Shelter - Converting dream into reality……61

 Need for an Urban Regulator

 Model guidelines from the Central

Government,
 States to pass legislation for setting up a
State Urban Regulator,
 Regulator to mediate disputes between
ULBs and Parastatals &
 Regulator to ensure Provision of land at
institutional rates for “no profit no loss”
housing.

The Right to Shelter - Converting dream into reality……62

 Planning & Investments
 City Development Plan,
 Master Plan,
 Spatial Dimension of Financial Investments,
 Role of Central ,State and Local Governments &
 Domestic Investment & FDI

The Right to Shelter - Converting dream into reality…… 63

 Caring for the Urban Poor

 A Tale of Two Cities,

 The Antyodaya Approach,
 BSUP Fund of each city &
 Special Development Plan for the Urban Poor
of each city

The Right to Shelter - Converting dream into reality…… 64

 “ I will give you a Talisman. Whenever you are in doubt or when the self
becomes too much with you, apply the following test:
Recall the face of the poorest and weakest man whom you may have seen
and ask yourself if the step you contemplate is going to be of any use to
him. Will he gain anything by it? Will it restore him to a control over his own
life and destiny? In other word, will it lead to Swaraj for hungry and
spiritually starving millions?
Then you will find your doubts and yourself melting away.”

~ Mahatma Gandhi

65