ž Ÿ ½ ˆÅú œï ¼ î ¾ œïš œ 2008 ˆÅú fjiksvz REPORT ON TREND & PROGRESS OF HOUSING IN INDIA 2008 jk"vªh; vkokl csad National Housing Bank
«-»\ ú CONTENTS š -1 À œï 7 Chapter-1 : Introduction 1.1 ¾ ˆÅ ĈŠœ The Global Economic Perspective 1.2 ž ú ĈŠœ The Indian Economic Perspective 1.3 ½ œ ĈŠˆÅ ˆÅ Impact of Economic Developments on the Housing Sector 1.4 Š è ½ ½ ˆ½Å Ÿ š Ÿ ½ î ˆÅ œï í The Flow of Housing Finance through Institutional Sources 1.5 ˆÅ ½» œ Ÿ ½ ½ ˆÅ The contribution of Housing Sector to GDP š -2 À ¾ î Ÿ ½ ú Š ÇÅŸ 17 Chapter-2 : Policy Developments in Housing and Housing Finance 2.1 ú ÁˆÅ, š ž ½Š ˆÅŸ ú Housing Stock, Occupancy & Shortage 2.2 ž Ÿ ½ í ú À ˆÅ µ Ä ˆÅ œ Affordable Housing in India: A Crucial Perspective 2.3 í ú ˆ½Å œï ž ž ˆÅ µ ½ ˆÅú ž» Ÿ ˆÅ The Role of Different Agencies towards Affordable Housing 2.4 ] ˆÅ ½«ú ½ ˆ½Å Ÿ š Ÿ ½ î ˆÅ Š œï í Institutional Flow of Housing Finance through Fiscal Concession 2.5 ¾ î œ ž lfefr;ka ( œ ½ ˆÅ ) Various Committees on Housing and Housing Finance (Summary of Recommendations) 3
š -3À î Ÿ ½ { ˆ½Å ÇÅŸ 35 Chapter-3 : Market Developments in Housing Finance 3.1 ] ˆÅú ½ ¾ µ ½ œ ˆÅ Interest Rates & their Impact on Housing Loan 3.2 î ˆ½Å œ ¾ µ - œ Housing Finance Products and Delivery Mechanisms 3.3 ž Ÿ ½ î ˆÅú º³ The Housing Finance set-up in India 3.4 Ÿ ĵ Ô ½Š ( í ú ) Ÿ ½ š ½ ˆÅ œï í Flow of funds into the Construction Industry (Affordable Housing) 3.5 î ˆ½Å ½ Ÿ ½ ˆÅ ˆÅ í ½œ Government Intervention in the Housing Finance Sector 3.6 î ˆ½Å ½ Ÿ ½ ž ú { Ä ÿˆå ˆÅú ž» Ÿ ˆÅ RBI's Role in the Housing Finance Sector š -4 À î ½ ˆÅ œ \ «œ 47 Chapter-4 : Operations and Performance of Housing Finance Institutions 4.1 î ˆ Åœ Housing Finance Companies 4.2 º» \ µ ] ˆÅ ÿˆå Scheduled Commercial Banks 4.3 íˆå ú ½ The Co-operative Sector š -5 À ž Ÿ ½ í ú ˆÅ Ÿ»»\ ˆÅ ˆÅ 78 Chapter-5 : Residential Housing Price Index in India 5.1 Ÿ ½ í ú ˆ½Å Ÿ»»\ ˆÅ ˆÅ % varjzk"vªh; ifjn`'; Residential Housing Price Indices : International Overview 5.2 ú Ÿ»»\ ˆÅ ˆÅ -.. ÿˆå ˆÅú ˆÅ œ í RESIDEX: NHB's Initiative 4
5.3.. ÿˆå ˆÅ ú Ÿ»»\ ˆÅ ˆÅ À ˆÅ œ ¾ ƒ ˆÅú š µ ½«NHB RESIDEX: The Concept & its Salient Features 5.4 ž ú «ˆÅ ½µ Future Outlook š -6 À î ú ˆÅ ˆÅ 91 Chapter -6 : The Impact of Financial Crisis 6.1 ˆÅ ˆÅú º³ Origins of the Crisis 6.2 ˆÅ ú ½ ½ œ Impact on the Developing Countries 6.3 ž Ÿ ½ ½ œ Impact on the Housing Sector in India š -7 À Ä Ÿ Á Š ½] ( œ ú š ˆÅ) µ 99 Chapter-7 : Reverse Mortgage Loan 7.1 Ä Ÿ Á ÄŠ ½] µ ˆ½Å œ úž½ ˆÅ œ The Concept behind RML 7.2 Ä Ÿ Á ÄŠ ½] µ ˆÅ ž ú œ The Indian Perspective to RML 7.3 µ ˆÅ œ Delivery Mechanism 7.4 ¾ ˆÅ ½Äî Ÿ í Global Best Practices š -8À «ïú ÿˆå ˆÅú ž» Ÿ ˆÅ 115 Chapter-8 : Role of National Housing Bank 8.1 œï Introduction 8.2.. ÿˆå ˆÅ î ú «œ Financial Performance of NHB 8.3 œ º Äî š ú ž» Ÿ ˆÅ ¾ «œ Refinance Role and Performance 8.4 Ÿ ˆÅ ž» Ÿ ˆÅ Regulatory Role 5
8.5 œ Ä ½ µ ú ž» Ÿ ˆÅ Supervisory Role 8.6 š Ä Ÿ ˆÅ ž» Ÿ ˆÅ Promotional Role 8.7.. ÿˆå ˆ½Å º š ˆÅ Š œï ½ í Research and Development Initiatives of NHB 8.8 ƒä œ í New Initiatives š -9 À lw{e «î (Ÿ ƒçå ½ œ ƒ ½ ) - ˆÅ œ 131 Chapter-9 : Housing Micro-Finance Concepts & Status 9.1 Ÿ ƒçå ½ œ ƒ ½ lw{e «î Microfinance 9.2 Ÿ ƒçå ½ î ˆÅ ½ œ ž «ˆÅ Defining Housing Microfinance 9.3 Ÿ ƒçå ½ î Ÿ ½.. ÿˆå ˆÅú œ í NHB s Initiatives in Housing Microfinance š -10 À Ÿ º «ž ú «ˆÅ ½µ 137 Chapter-10 : Key Issues and Future Outlook 10.1 ž ú î ˆÅ ˆÅ ˆÅ An Assessment of the Indian Housing Finance System 10.2 œ œï š Disaster Management 10.3 $ ú ½ ˆ½Å ºˆ»Å Pro-Poor Housing 10.4 Ä Ÿ Á ÄŠ ½] µ š ú ÇÅŸ Developments under Reverse Mortgage Loan 10.5 š ˆÅ (íˆå) š ú œ» Ä Title Indemnity 10.6 ž ú «ˆÅ ½µ Future Outlook 6
š -1 À œï Chapter-1: Introduction 1.1 ¾ ˆÅ Ä 1.1.1 ¾ ˆÅ Ä ˆÅú Š ĈŠˆÅ ˆ½Å Ÿ ½ Ÿ ú í ½ íú í¾a «Ä 2007 Ÿ ½ º³ íºƒä î ú í \ «Ä ˆ½Å ¾ œ»µ Ä ÄˆÅ ˆÅ Ÿ ½ Š ƒä ú, ] ˆ½Å ˆÅ µ ½ ½{ Š ú š ˆÅ [õú ¾ ˆÅ Š ž ú Ÿ ú Ÿ ] ½ ˆÅú vkgv ½ ú í¾a ƒ ˆÅ ˆ½Å œ µ Ÿ ³œ, ĈŠˆÅ Ÿ ½ Ÿ ú, Ä ½, ½«³œ ½ ºÆ ] ½ Ÿ ½, ½ š ˆÅ íú í¾a íì ½ ˆ½Å º º ½ ˆÅ œï œ º ½Š ˆÅ î ú ˆÅ ˆ½Å :i Ÿ ½ Š ¾ Ÿœ»µ Ä Ÿ ½ œ ¾ Š A 1.1.2 ž ú ¾ ˆÅ í ½ ú Ä î ú { ˆ½Å ÇÅŸ ½ ˆ½Å Ÿ Ó½ ž ú ˆÅ ˆÅ ½ ˆÅŸ œïž íºíä íÿ ¾ ½{ Š ½ ƒ ˆÅ ˆÅ ] ú í í¾ ; í µ Ä, ¾ ˆÅ ĈŠŸ ú ˆ½Å Ÿ ½ \ ú, ž ³ ž ú ˆÅ «Ä ˆ½Å ¾ ÇÅŸ À 11.9 œï, 9.3 œï ¾ 8.1 œï ˆÅú Š ½ [õ ½ í½ ½ A ˆÅ ˆÅ ½Š œï œ ˆÅ ž ž œï ˆÅ ] í í¾, Æ ½ ˆÅ ½ ½ œïš Ÿ ú ³œ ½ ¾ œ ½ ¾ ˆÅ\\ ½ Ÿ ˆ½Å š Ä œ ˆ½Å { ¾ ˆÅ Ä Ÿ ½ Ÿ ] ½ íÿa 1.1.3 «Ä 2007-08 ˆ½Å ¾, ¾ ˆÅ ¼ Ö 2007 Ÿ ½ 5 œï ½ 2008 Ÿ ½ 4.1 œï Ÿ ½ º í ½ ½ Ÿ ½ œï œ ˆÅú ] ú í¾a Ÿ ŠÏ ¾Ô ½ Š ˆÅ œ Ÿ ½ ¼ Ö œ» Ä Ÿ «Ä ˆÅú º Ÿ ½ Ÿ º ³œ ½ Ÿ ĵ ¼ Ö ¾ Ô º ¼ Ö ˆ½Å Ÿ Ó½ ˆÅŸ ú A í ĈŠŸ ú œ» ] úš Ÿ ˆ½Å ½ í ž ú ½ ½ Ÿ ½ œï œ ˆÅú Š ƒä ú, ] ½ œ» Ä Ÿ «Ä ˆ½Å ¾ Ÿ í œ»µ Ä ³œ ½ ½í «œ ˆÅ A œ» ] úš Ÿ ˆ½Å ½ ½ 2008 ˆ½Å ¾ 6.5 œï ˆÅú ¼ Ö ] Ä ˆÅú ú ] ½ ˆÅ œ» Ä Ÿ «Ä (2007 ˆ½Å ¾ 19.1 œï ) ˆÅú º Ÿ ½ íº ˆÅŸ úa Ÿ í œ»µ Ä š ˆÅ Ô ½Š ½ ˆÅú ¼ Ö ˆÅ «Ä œ í ½ ˆ½Å 6.3 œï ˆÅú º Ÿ ½ 2008 ˆ½Å ¾ 3.5 œï œ ú Š ƒä ú, ] ˆÅ ˆÅ ½ ½ ˆÅ ½ Ž ½ õˆå ž ú Ÿ Š ˆ½Å ú í½ íÿa 1.1 Global Economy 1.1.1 The global economy is losing pace in face of major financial crisis. The financial turmoil that began in 2007 erupted into a full-blown economic crisis during the year causing high unemployment and now threatens to become a major humanitarian problem. As a consequence of the crisis, the slowdown in the economic growth has been greatest in the advanced economies particularly in the United States, where the burst of housing bubble eventually took the shape of a financial crisis spreading across the world. 1.1.2 The emerging and developing economies have so far been less affected by the crisis on account of financial market developments and have continued to grow at a rapid pace. For example, in the face of the global meltdown, China, India and Russia still managed to grow at 11.9 per cent, 9.3 per cent and 8.1 per cent, respectively during the year. The growth momentum is being provided by strong productivity gains as these countries progressively integrate into the global economy, by way of increased trade of finished products and other raw materials. 1.1.3 During 2007-08, the global growth is projected to moderate from 5 per cent in 2007 to 4.1 per cent in 2008. The overall industrial production growth was lower mainly on account of a slowdown in the manufacturing growth and electricity growth as compared to previous year. The slowdown was reflected in all the sectors, including that in the capital goods sector, which had performed remarkably well during the previous years. The capital goods sector recorded a growth of 6.5 per cent during 2008 which was very low in comparison to the previous year (19.1 per cent during 2007). The growth of core infrastructure industries was placed at 3.5 per cent during 2008 as compared with 6.3 per cent a year ago, with all the industries witnessing deceleration, barring coal. 7
1.1.4 Ô œ, ž ½ { ½ Ÿ ½ ú«ä œ Æ ˆÅú Ÿ ºÍ œ ú Ÿ Š Ÿ ½ ž ú ¼ Ö ¾ ] Ä Ô œ ½ Ä ˆ½Å š œ ž ½Š ˆ½Å ˆÅ µ «Ä ˆ½Å ¾ Ÿ {» íºƒä í¾, íº ½ ½ Š Ÿ ˆ½Å Ÿ ºÍ œ ú ˆÅú ½ í íú ˆ½Å «½ô Ÿ ½ ˆÅú :i ½ ˆÅŸ íºƒä íÿa Ÿ», { ½ ¾ œ ½ ˆºÅƈºÅ ] ¾ ½ œï Ÿ ˆÅ Ÿ ˆ½Å Ÿ» ½ ˆ½Å ½ ˆÅú ˆÅú xbza ž Ÿ Ä Ÿ ˆÅ Ÿ» ž ú 2007 Ÿ ½ Š ¾ ƒ ½ Ÿ ºÍ œ ú ˆÅŸ í ½ Š ƒä ú gkykafd, 2008 ˆ½Å œï Ÿž Ÿ ½ \ ¾ Ô œ ½ Ä ˆ½Å Ÿ» Ÿ ½ ˆÅú ¼ Ö ½ ú Š ƒä ú A ½ ¾ Š ¾ ˆ½Å Ÿ» Ÿ ½ ž ú ˆÅŸ ¼ Ö íì íºƒä ú A ] Ÿ º Ô º ½ ˆ½Å Ÿ» ˆÅ ½ ¼ Ö ˆ½Å ] ½ õ Š, \\ Ÿ ºÍ œ ú íú ˆ½Å ž œ µ Ÿ A ƒ Ä ½ Ÿ ½, ž ½] ¾ ƒôš š œ ž ½Š ˆÅ ¼íî ½ œ» ˆÅ ½ íÿ ¾ lrr~ ¼ Ö gsrq] Ÿ Š š ½ ls ikj ikus ds fy, vkiwfrz vko';d gsa 1.1.5 ½ ú Ÿ ºÍ { Ÿ ½ ½ ] º ƒä, 2007 Ÿ ½ º³ ˆÅ, ] Ÿ úˆåú Á ˆ½Å ˆÅ œïž ú Ÿ ½{ ú ½ Š ú í¾, Æ ½ ˆÅ Ÿ úˆåú š œ ½ ¾ Ÿ ½ ½ (ƒ Æ ú) Ÿ ½ ½ ú ½, ºÆ ] ½ ˆ½Å ˆÅ ˆÅú ž ¾ ] ½ ½ ˆÅŸ { ½ œ õ ] ½ ˆ½Å Æ, \ š ˆ½Å ¾ ½ ú ½ œ œï œ, ½ ½ Ÿ ½ ˆÅŸ í ½ ] ½ ½ š íºƒä A Ÿ úˆåú Á ½ ˆ½Å Ÿ» Ÿ ½ Š ½ Ä [õ í¾ ¾ 2006 Ÿ ½ ƒ ˆÅú œ ˆÅ «ˆÅú œ ½ œ ˆÅ ½» œ ˆ½Å 1-1/2 œï œ, 2007 ˆÅú \ ¾ ú Ÿ íú ½ ˆÅ ½» œ ˆ½Å 5 œï ½ ˆÅŸ í ½ ½ œ ºÆ ] ˆ½Å \» ½ ˆÅ ú\ ½ ½ Ÿ ½ í ˆÅú A Á ˆÅ Ÿ º izfrlfkk;h» ½, ½ ¾ ˆÅ Á ] ¾ ú Ÿ ºÍ ¾ ˆºÅŽ ž ú Ä ½ ˆÅú Ÿ ºÍ ½ ˆÅ š Ÿ» í í¾a 1.1.6 ¾ ˆÅ š œ ½ ˆÅ { œ» ½ š ˆÅ í µ ½ ¾ ½ ˆÅ ½ ½ š Ä ÇÅŸ ] ½ Ÿ ½ ˆ½Å œ Äœ ³œ ½ š ˆÅ œï œ ˆÅú Ÿ Š ˆÅú, ] ˆÅ ˆÅ µ -œï ƒÿ µ Ÿ ¾ Ÿ í ½ ú ¾ ˆÅ Ä [õ ú Ÿ ºÍ œ ú ˆ½Å œ \ úä µ ˆÅú \ Ÿ í ú A ºÆ ] ˆ½Å µ { ˆÅú ú, ½ ˆ½Å \ ½ Ÿ» ½, [õ ú Ÿ ºÍ œ ú ¾ Ÿ í ½ ¾ ˆÅ ˆÅ œ» ½ Ÿ ½ ½ { Ÿ ½ Š ˆ½Å { ŸŸ ½ íÿa 1.1.4 Although, in the emerging markets, headline inflation has strengthened during the year due to strong demand growth and the greater weightage of energy and food in consumption baskets, the inflation rates for many investment goods have decreased dramatically in recent years. The prices of basic goods such as lentils, vegetables, fruits and poultry are expected to slow down. The price of various manufactured goods also fell in 2007, and this contributed to a reduced inflation rate. However, the beginning of 2008 has seen a dramatic rise in the price of rice and other basic food stuff. There has also been a no-less alarming rise in the price of oil and gas. When coupled with a rise in the price of major commodities, higher inflation was the only likely outcome. In these economies, food and fuel make up a larger share of consumption baskets and to sustain growth, capacity constraints in their supply need to be over come. 1.1.5 Volatility in foreign exchange markets started to pick up in July 2007 when the real effective exchange rate for the U.S. dollar has declined sharply as foreign investments in U.S. bonds and equities was dampened by reduced confidence in both the liquidity and the returns on such assets, as well as by the weakening of U.S. growth prospects and interest rate cuts. The decline in the value of the U.S. dollar has boosted net exports and helped bring the U.S. current account deficit down to less than 5 percent of GDP by the fourth quarter of 2007, over 1½ percent of GDP lower than its peak in 2006. The main counterpart to the decline of the dollar has been appreciation of the euro, the yen, and other floating currencies such as the Canadian dollar and currencies of some emerging economies. 1.1.6 The global bond market was highly volatile throughout the year. The lenders and investors demanded substantially higher returns for the increased default risks because of subprime loan problem and subsequent credit crunch together with the slowing global economy and rising inflation. The US credit market turmoil, higher oil prices, rising inflation and softening global growth were responsible for lowering the share market across the world. 8
1.2 ž ú Ä 1.2 Indian Economy Ÿ «Š œ Ä µ Macro Environment 1.2.1 ž ú Ä í íú ˆ½Å «½ Ä Ÿ ½ ¾ ˆÅ Ä ½ ˆ½Å ½ Ÿ ½ ½ ˆÅ íú í¾ ¾ 2007-08 Ÿ ½ ˆÅ «œ \Ž í í¾, Ô œ, ˆÅ º ˆÅ ½» œ Ÿ ½ Ÿ ŠÏ ¼ Ö 2006-07 Ÿ ½ 9.6 œï ½ ½ õú ú Š ú ¾ 2007-08 Ÿ ½ í 9.0 œï íúa 2007-08 Ÿ ½ ˆÅ Ÿ ½ ½ õ º Ÿ º ³œ ½ ˆºÅŽ œï ˆ»Å ÇÅŸ ¾ ½ ½ Ô ½Š Ÿ ½ ĈŠŸ ú ˆ½Å ˆÅ µ í í¾a 1.2.2 ƒ «Ä Ÿ ½ ˆÅ ˆÅ Ÿ ˆÅ ½«ˆÅ ½» œ Ÿ ½ ˆ¼Å «½ ˆ½Å Ÿ ½ ¼ Ö ú, ] ½ 2006-07 Ÿ ½ 3.8 ½ ºš ˆÅ œ» Ä Ÿ «Ä Ÿ ½ ºž ˆÅú Ÿ ú ˆ½Å 2007-08 Ÿ ½ 4.5 œï í ½ Š ƒä úa ƒ ú œïˆå ½, œ, í ½, œ í, ž µ ¾ œï½«µ ½ ˆ½Å Ÿ ½ ˆÅ ¼ Ö íú í¾ ] ½ 11.8 œï ½ 12.0 œï ú A œ, Ÿ ĵ ½ Ÿ ½ ¼ Ö (2006-07 Ÿ ½ ) 12.0 œï ½ Š ˆÅ (2007-08 Ÿ ½ ) 9.8 œï œ Š ƒä ú A î, úÿ ž» œ ¾ œ ½ ½ Ÿ ½ ˆÅ ½ ú íú Ÿ ú úa 1.2.3 ¾Ô ½ Š ˆÅ ½ Ÿ ½, ˆÅ ˆÅ ½» œ ˆÅ ˆÅ 2006-07 Ÿ ½ 10.6 œï ½ ˆÅ 2007-08 Ÿ ½ 8.2 œï í Š A ¾Ô ½ Š ˆÅ œ ˆ½Å»\ ˆÅ ˆÅ ˆ½Å º, ¾Ô ½ Š ˆÅ ˆÅ 2006-07 ˆ½Å 11.6 œï ˆÅú rqyuk esa 2007-08 Ÿ ½ ˆºÅŽ ˆÅŸ 8.3 œï ] Ä ˆÅ Š ] ] ˆÅ ˆÅ µ ¾ Ô º ½ ½ Ÿ ½ œ ˆÅ í A ƒ «Ä ˆ½Å ¾, Ÿ ĵ ½ ½ œ Ž ½ \ «½ Ä Ÿ ½ ½ ˆÅŸ ˆÅ ] Ä ˆÅ A í «Ä 2006-07 Ÿ ½ 12.5 œï ˆÅú º Ÿ ½ «Ä 2007-08 Ÿ ½ 9 œï œ ] Ä ˆÅ Š A œ» ] úš Ÿ ½ ˆÅ «œ ½«³œ ½ 18.0 œï ¼ Ö ˆ½Å œïž ˆÅ ½ A œ, œï Ÿ ˆÅ Ÿ, Ÿ š úä Ÿ ¾ œ ž ½Æ Ÿ ˆ½Å ½ ½ ½ «Ä 2007-08 ˆ½Å ¾ 7.0 œï, 8.9 œï ¾ 6.1 œï ˆÅú Ÿ ˆÅ ¼ Ö ] Ä ˆÅú úa 1.2.1 India's economy has been one of the stars of global economy in recent years and performed well during 2007-08, although the growth moderated marginally. The overall growth in Gross Domestic Product (GDP) has declined marginally from 9.6 per cent in 2006-07 to 9.0 per cent in 2007-08. The slight moderation in growth in 2007-08 has been mainly due to some adverse development and slowdown in services and industry. 1.2.2 A positive feature during the year was the growth in the contribution of agricultural sector GDP, which has improved from 3.8 per cent in 2006-07 to 4.5 per cent in 2007-08, after a slowdown experienced in the previous year. Similarly, there has been a growth in the contribution of trade, hotels, transport, storage and communication sector from 11.8 per cent to 12.0 per cent. However, in construction sector, the growth rate declined from 12.0 per cent (2006-07) to 9.8 per cent (2007-08). There was a similar deceleration in finance, insurance, real estate, and business services sector. 1.2.3 In the industrial sector, the growth of real GDP declined from 10.6 per cent in 2006-07 to 8.2 percent in 2007-08. Industrial Growth, in terms of Index of Industrial Production (IIP), was recorded at a lower level of 8.3 per cent in 2007-08 in comparison to 11.6 per cent in 2006-07 on account of slow growth in the mining and electricity sectors. During the year, the manufacturing sector recorded the lowest growth in the last four years. It was recorded at 9 per cent during 2007-08 as compared to 12.5 per cent during 2006-07. The performance of the capital goods sector was particularly impressive with 18.0 per cent growth. However, basic goods, intermediate goods and consumable goods sectors recorded decelerated growth of 7.0 per cent, 8.9 per cent and 6.1 per cent, respectively during 2007-08. 9
1.2.4 ž Ÿ ½, ½ˆÅ Ÿ»»\ ˆÅ ˆÅ œ š ú«ä Ÿ ºÍ œ ú Š «Ä ˆÅú 6.6 œï ˆÅú º Ÿ ½ «Ä 2007-08 ˆ½Å ¾ [õˆå 7.5 œï í ½ Š ƒä úa ˆºÅŽ œï Ÿ ˆÅ Ô º ½ ¾ ˆºÅŽ Ÿ Ä œ ½ ˆ½Å Ÿ» Ÿ ½ º 2007 Ÿ ½ Ÿ ºÍ œ ú ˆÅ Ÿ œ õ ] Ä í¾ A œ, Ÿ ½ Ÿ ºÍ œ ú ˆÅ ½ í ½ Š ƒä ú ¾ Ÿ \ Ä, 2008 Ÿ ½ í 8 œï œ œ íº \ Š ƒä ú, ] ½ Ÿ º Ô œ ½ Ä ¾ ƒôš ˆ½Å Ä«ïú Ÿ» ½ Ÿ ½ [õ ½ ú œ œ» Ä œ ˆÅ [õ ] œï ˆÅ ú í¾a 2007-08 Ÿ ½, Ÿ º ³œ ½ 12 Ÿ ½ / Ÿ»í ½ ½ ú«ä ½ˆÅ Ÿ»»\ ˆÅ ˆÅ Ÿ ºÍ œ ú ˆÅ ½ Š ½ [õ A ½ Ÿ ½ \, Š ½í»,»š, ˆÅ\\ ú ˆÅœ, v;ld yksg, í, ú, ˆÅ ½ [kuu, ] ½, Ô ½, š ž» ž ú ˆÅ Ä ˆÅ ¾ š º íÿ, ] ˆÅ Ÿ ª ž ½ˆÅ Ÿ»»\ ˆÅ ˆÅ Ÿ ½ Š ž Š 35 œï ¾ ƒ í ½ ½ ½ˆÅ Ÿ»»\ ˆÅ ˆÅŠ Ÿ ºÍ œ ú ˆ½Å Š ž Š 82 œï ˆÅ ½ A 1.2.5 ƒ «Ä ˆ½Å Í ˆÅ ˆ½Å ] ½ ˆÅ ºŸ 63,488 ˆÅ ½ õ :i, ˆÅ ½» œ 1.4 œï œ ˆÅ Š, ] ½ 2006-07 Ÿ ½ ˆÅ ½» œ ˆ½Å 1.5 œï ½ ˆÅŸ A Ÿ ª ˆÅ ] ˆÅ ½«ú, ] ½ 2006-07 Ÿ ½ 5.6 œï, ƒ «Ä ˆ½Å ¾ ƒ Ÿ ½ ½ õ ºš íº ¾ í ˆÅ ½» œ ˆ½Å 5.3 œï œ Š A ˆÅ ] ½«³œ ½ œï ˆÅ ] Ÿ ½ œ ˆÅ ½ Ÿ º ] ˆÅ ½«ú ˆ½Å ˆÅ ½ Ÿ ½ ºš º š ] ˆÅ A ˆÅ ½» œ ˆ½Å ºœ Ÿ ½ Ÿ ª ˆÅ ½ Ÿ \ Ä, 2007 ¾ 2008 ˆ½Å Ÿ ½ íú Ä Ã ( ½ š ºŸ ) 77.0 œï A ƒ «Ä Ÿ ½ ] ˆÅ ˆÅú ½ ½ Ÿ ½ Š ] Ä ˆÅú Š ƒä ú, œ, í ˆ½Å Í ˆÅ ˆÅú ˆÅ ½ ½ Ÿ ½ ¼ Ö ½ Ÿ ½ ] ˆÅú Š ƒä ú A» Ÿ ºÍ ( Ÿ.3) Ÿ ½ ºš ] ú í ¾ 31 Ÿ \ Ä, 2008 ˆÅ ½ í œï¾, 2007 Ÿ ½ «ÄˆÅ ú Š µ Ÿ ½ 17.0-17.5 œï ˆÅú º Ÿ ½ 20.8 œï œ úa 1.2.6 «Ä 2007-08 ˆ½Å ¾, Ä ½ ˆÅ «œ \Ž í A ž ú { Ä ÿˆå ˆ½Å º, Ä «Ä 2006-07 ˆ½Å ¾ 128.1 Ÿ úˆåú Á ½ 23.7 œï ˆÅú œïž ú ¼ Ö ˆ½Å, «Ä 2007-08 Ÿ ½ 158.5 1.2.4 In India, the headline inflation based on the Wholesale Price Index (WPI), increased to 7.5 per cent during the year 2007-08 as compared to 6.6 per cent, last year. Moderations in the price of some basic food articles and some manufactured products reflect the softening of the inflation in 2007. However, inflation hardened subsequently to reach 8 per cent in March 2008, which reflected tightening of supply side pressures on key commodities and surge in international fuel prices. In 2007-08 mainly 12 items/groups impelled the Headline WPI inflation. They were rice, wheat, milk, raw cotton, iron-ore, oilseeds, iron-ore, oil cakes, coal mining, mineral oils, edible oils, basic heavy inorganic chemicals and metals, with a combined weight of about 35 per cent in the WPI basket accounting for almost 82 per cent of WPI inflation. 1.2.5 This year, the revenue deficit of the Central Government estimated at Rs. 63,488 crore or 1.4 per cent of the GDP was lower than 1.5 per cent of GDP in 2006-07. The combined Gross Fiscal Deficit (GFD), which was 5.6 per cent in 2006-07 improved to arrive at 5.3 per cent of GDP during the year. The buoyancy in tax revenue, especially direct tax revenues, facilitated improvement in key fiscal indicators. The combined outstanding liabilities in proportion to GDP were the same at the end of March 2007 and 2008 (RE) i.e., 77 per cent. During the year, a decline in the liabilities of the State Government was recorded; however the same was offset by the increase in the outstanding liabilities of the Central Government. The Broad Money (M3) continued to improve with 20.8 per cent as on March 31, 2008 as compared to 17.0-17.5 per cent set out in the Annual Policy Statement in April 2007. 1.2.6 During 2007-08, the export and import sector performed well. As per the Reserve Bank of India (RBI), exports reached US $ 158.5 billion during 2007-08 with an impressive growth of 23.7 per cent from US $ 128.1 billion during 2006-07. 10
Ÿ úˆåú Á œ œ íº \ Š A Ÿ ½ ž ú ¼ Ö í ½ ú ú ¾ í ¼ Ö (2006-07 Ÿ ½ ) 191.2 Ÿ úˆåú Á ½ 2007-08 Ÿ ½ ) 248.5 Ÿ úˆåú Á œ Š ƒä úa 1.2.7 ž ú î { ˆÅú 2008-09 ˆ½Å ¾ º í ½ ˆÅú ú A œ, Ÿ ºÍ { ˆÅú ½ Ÿ ½ 2008-09 ˆÅú œï Ÿ Ÿ íú ˆ½Å œï Ÿž Ÿ ½ º ½ Š A µ ] ˆÅ œ ½œ œ Ÿ \ Ä, 2007 ˆ½Å Ÿ ½ 11.33 œï ½ Æ», 2007 ˆ½Å Ÿ ½ ž ¾ Ø Ÿ ½ Š Š ƒä ú ¾ í 7.65 œï í ½ Š ƒä ú A œ, Ÿ \ Ä, 2008 ˆ½Å ds nksjku í 10.38 œï œ œ íº \ Š ƒä ú A ] Ÿ ˆ½Å œïÿ µ œ ½ œ ž ¾ Ø Ÿ ½ ž ú Ÿ \ Ä, 2008 ˆ½Å Ÿ ½ 10.00 œï ˆÅú ¼ Ö íºƒä, ] ½ œ» Ä Ÿ Ÿ ½ Ÿ \ Ä, 2007 ˆ½Å Ÿ ½ 10.75 œï ½ Š ˆÅ Š, 2007 ˆ½Å œï Ÿž Ÿ ½ 7.40 œï í Š ƒä úa 1.2.8 ½ ú Ÿ ºÍ Ÿ { Ÿ ½ ž ú ½ 2007-08 ˆ½Å ¾ œï Ÿ úˆåú Á 39.26-43.15 :i, ˆÅú ª½µ ú Ÿ ½ ½ œ \ œï Ä ˆÅ A ž ú :i;k Š, 2007 Ÿ ½ œï Ÿ úˆåú Á 41.58 :i, ½ ˆÅ ] º ƒä, 2007 Ÿ ½ œï Ÿ úˆåú Á 40.43 :i, í ½ Š A ½ ú Š ½ íœïä í ˆÅ\\ ½ ½ ˆ½Å [õ ½ Ÿ» ¾ ½ Ç Åœ ½ Á ˆÅú ž ú Ÿ Š ½ ˆÅ ½ ½ Ÿ» ˆÅ ½ A ƒ ˆ½Å, ] ú, 2008 ˆÅ œï Ÿ úˆåú Á 39.26-39.84 :i, ˆÅú ª½µ ú Ÿ ½ Ÿ» ¼ Ö íºƒä úa 1.3 ĈŠˆÅ 1.3.1 ˆÅ ½ «ï ˆ½Å ĈŠˆÅ ˆÅ ƒ ] Ÿ ] í¾a ú ž» œ ˆ½Å ˆ¼Å «½ Š» ½ ½Æ í ½ ½ ½, ž ú Ä ˆ½Å œïÿ º \ ˆÅ ½ Ÿ ½ ½ ˆÅ í¾a ž (» Ä š ˆÅ ] ½ ) Ÿ ½ ˆÅ ½ ĈŠˆÅ ˆÅ ½ ˆÅ ˆÅ Ÿ ] í¾ ¾ ƒ ½ ½ ˆ½Å ˆÅ ½» œ Ÿ ½ Š ž Š 5 œï ˆÅ ˆÅ A Imports too have increased from US $ 191.2 billion (2006-07) to US $ 248.5 billion (2007-08). 1.2.7 Indian financial market was expected to remain orderly during 2008-09. However, moderation was observed at beginning of the first quarter of 2008-09 in money market rates. There was a decline in the weighted average discount rate (WADR) on commercial paper (CP) from 11.33 per cent on during March, 2007 to 7.65 per cent at end-october 2007, however, by end-march 2008, it reached 10.38 per cent. The WADR on certificates of deposit (CDs) also increased to 10.00 per cent at end March, 2008, which had earlier declined from 10.75 per cent at end- March 2007 to 7.40 per cent at the beginning of August 2007. 1.2.8 In foreign exchange market, the Indian rupee exhibited two way movements in the range of Rs. 39.26 to 43.15 per US $ during 2007-08. The Indian rupee depreciated to Rs. 41.58 per US $ in August, 2007 from Rs. 40.43 per US $ in July, 2007. FIIs outflows, rising crude oil prices and heavy dollar demand by oil companies accounted to its depreciating value. Thereafter, it appreciated in a range of Rs. 39.26 to 39.84 per US $ in January, 2008. 1.3 Economic developments and housing 1.3.1 Housing is termed as the nation s engine of economic growth. Housing and real estate sector being the second largest employer next only to agriculture is one of the key drivers of the Indian economy. Housing in India (the second highest populous country) presumes to be the most important component in the economic development and contributed around 5 per cent to the GDP of the country. 11
1.3.2 í úˆå µ Ÿ ½ ¼ Ö ˆ½Å ½{ ú ½ [õ ú ] ˆ½Å ž ú Ÿ Š œ ¾ ˆÅ íú í¾a Š í ì œ \ «úä ½] ˆ½Å œï Ÿž Ÿ ½ í ú ½ ½ Ÿ ½ Ÿ ˆÅ ½ ˆÅú ˆÅŸ ú ˆÅ ºŸ 24.71 Ÿ œ Š ] Ÿ ½ Š ž Š 99 œï ˆÅŸ ú ĈŠ³œ ½ ˆÅŸ { ½ ¾ Ÿ Š Ä ½ š úa ž ˆÅú í ú ú ] ½ Š ú ½ Ÿ ½ í ú í¾, Š ž Š 15.2 œï ( ºŸ ³œ ½ 42.8 Ÿ ½Š ) ¾ ºŸ ³œ ½ 81 Ÿ ½Š ½ ˆ½Å ˆÅ ˆÅŸ ½ ˆÅú ú ƒˆå ƒä Ÿ ½ 35 œï í ú œ í ½ íÿ ¾ ƒ íì Ÿ ½ $ ú ú ½ ½ ú\ ½ í íú ˆºÅ ú 25.7 œï í¾a í íú ˆ½Å «½ Ä Ÿ ½ ¾ ½ { Š ˆ½Å ½ Ÿ ½, ½«:i ½ Š ½ Ÿ ½ š ˆÅ ½ ˆ½Å [õ ½ ˆ½Å ˆÅ µ í úˆå µ ú Ï Š ½ [õ í¾a 1.3.3 ì ½] (2002-2007) ˆ½Å š ú, ˆÅ ½ í ú ½ ½ Ÿ ½ µ ˆÅ œ [õ ½ ˆ½Å Š œ ˆÅú œ í ˆÅú ú A íú, š ú œ ½ ˆ½Å ] º õú ] ˆÅ ½«ú ½ ž ú Ÿ ½ [õ ½ ½ ˆÅ ½ œï ½ í ˆÅ ½ ˆ½Å œï Ÿž ˆÅú Š ƒä úa 10 ì œ \ «úä ½] ˆ½Å š ú, ˆÅ ½ ] ž ˆÅ µ ½ ¾ ] ú ½ ú µ [õ ½ ˆ½Å œ ½ Š ºš ½ ¾ š ú œ œï Ÿž ˆÅ ½ Ÿ ½ ] ˆÅ ˆÅ ½ º š ½ ½ œ ¾ í ú ½ š ž» Ÿ ˆ½Å { œ ¾ˆ½Å] ˆÅ ½ ½ ˆÅú œï ÇÅ ½{ ˆÅ ½ œ š ˆ½Å Í ˆÅ ú í¾ A ½ ž ú ž, ˆÅ ½ 2 Ÿ ú ˆÅ ÄÇÅŸ œ ¾ ˆÅ ˆÅ ½ œï œ ˆÅ ½ ˆÅú Ÿ ½ 35,00,000 ƒˆå ƒ ½ ˆÅ lesfdr 1998&99 ls 2007&08 dh vof?k esa ¾ Ÿ Ä ˆÅú Š ƒä ˆºÅ ú ƒˆå ƒ 36,20,858 ú A ƒ ˆ½Å íú, Ÿ ú ˆÅ Ÿ ½ ˆÅ ½] ˆ½Å š ú, 4,43,369 ƒˆå ƒ ½ ˆ½Å Ÿ ĵ Ä î ú í œï ˆÅú Š ƒä ú A ž Ÿ ĵ ˆÅ ÄÇÅŸ ˆÅ Ÿ í ˆÅ ú ºÆ œ ÇÅŸ, ] ˆÅ ŠÏ Ÿ úµ º ú [ \ ½ Ÿ ½ ºš ˆÅ, ž ú 2005 Ÿ ½ œï Ÿž ˆÅ Š A Ÿ, ˆÅ º íú íì, ] í ½í³ «ïú í ú ú úˆå µ Ÿ œï Ÿž ˆÅ Š ] ˆÅ î ú ³œ ½ š µ ú ŸŸ Š A 1.3.2 Rapid population growth along with the growth of urbanization is creating increasing demand for housing. The estimated shortage of houses in urban areas at the beginning of the eleventh five-year plan was estimated at 24.71 million which amount to about 99 per cent of the shortage which is to Economically Weaker Section (EWS) and Low Income Group (LIG) categories. India's urban population living in slum areas is about 15.2 per cent (approximately 42.8 million people) and 35 percent of the urban household live in single room dwelling unit with approximately 81 million people or 25.7 per cent of the total population living below the poverty line. The pace of urbanization is rampant particularly during the recent years due to growing opportunities in cities in the field of education and employment. 1.3.3 Under the Tenth Plan (2002-2007), the Government initiated institutional mechanisms to augment the housing delivery in urban areas. Also, fiscal concessions coupled with legislative measures have been initiated to encourage increased investments in housing. Under the 10th Five Year Plan, the focus is on facilitating the state governments to bring in the required institutional reforms and introduce legislative measures to enhance housing delivery by state agencies and private sector. The Government has also laid emphasis on the 2 Million Housing Programme and managed to achieve the physical targets under the scheme. Against a cumulative target of 35,00,000 units a total of 36,20,858 dwelling units were built during to period 1998-99 to 2007-08. Also, financial assistance for construction of 4,43,369 units under the Valmiki Ambedkar Awas Yojna (VAMBAY) scheme was sanctioned. Further, in 2005 the Bharat Nirman, Program, an ambitious venture which aimed at improving the rural infrastructure, was launched. Last but not the least the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched with a goal to create financially sustainable inclusive cities. 12
1.3.4 ž ˆÅ ˆ½Å ž Ÿ ĵ ˆÅ ÄÇÅŸ ½ 2007-08 ˆ½Å ¾ œïž ˆÅ ú œïš ˆÅú í¾a «Ä ˆ½Å œï ½ˆÅ, œ ú \» Š ˆ½Å 290 ½ ˆÅ ½ œ ú ½ ˆÅ œ ú Ÿ ºí¾ ˆÅ Š ¾ 17 ½ ˆÅ ½ œ ƈÅú õˆå ½ ½ ] ½ õ Š A «Ä ˆ½Å œï ½ˆÅ, 52 Š ½ ˆÅ ½ ½ úœ ½ Š ½ ¾ 42 Š ½ Ÿ ½ ] ú œ íº \ ƒä Š ÃƒÄ úa «Ä ˆ½Å œï ½ˆÅ 4,113 ŠÏ Ÿ úµ Ÿ ˆÅ œ» ½ ˆÅ Š ½A ž Ÿ ĵ ˆ½Å ( î œ» úä ½ ú ˆÅ í ) 31,280 ˆÅ ½ õ :i, «Ä 2007-08 Ÿ ½ 24,603 ˆÅ ½ õ :i, ˆ½Å Ÿ ºˆÅ ½ vkoafvr ˆÅ Š ½A 1.3.5 ] í ½í³ «ïú 'kq: ú úˆå µ Ÿ ž ˆÅ 2005-06 Ÿ ½ 'kq: ˆÅú Š ƒä ˆÅ Ÿ œ í í¾, ] ½ œ ƒä, Ÿ -], ˆ»Å õ -ˆÅ\ œï š, õˆå œï š, Š œ í, œ º ½ Š ½ ˆ½Å ½ ˆÅ œ º ĈÅ, Š ú- ú ºš, œ º Ä œ Ä µ ºš ¾ Ÿ º ˆÅ ¾\ ¾ Ÿ ] ˆ½Å ĈŠ³œ ½ ˆÅŸ { ½ œ Š Ä ˆ½Å í ú Ÿ» ½ œ ] ¾ ú œï Ÿ ˆÅ º š ½ ½ š š ˆÅ œ ½] ½ ˆÅú Ÿ ½ ˆÅ Ÿ š ˆÅ ½ ˆ½Å œï Ÿž ˆÅú Š ƒä úa 1.3.6 ž Ÿ ½, ½ ] ĈŠˆÅ ˆÅ Ÿ º Ó½ $ ú ú» ˆÅ ¾ ½ ˆ½Å Š ˆÅ ½ ˆÅ ] ú - ºš í í¾a í ž ú-ž úˆå ˆÅ Š í¾ ˆÅ $ ú ú ˆÅ œïž ú Ÿ», ˆ½Å ½ ˆÅú ¼ Ö ¾ ˆÅ œï ÇÅ Ÿ ½ $ ú ½ ˆ ú ÇÅ Ö ½ íú ˆÅ ] ˆÅ í¾a ƒ Ÿ º Ó½ ˆ½Å ˆÅ ½] ƒ ½] Ÿ ½ º³ ˆÅú Š ƒä úa ƒ ˆÅ œï Ÿ ˆÅ Ó½ º» \ ] ½ / º» \ ] ] ½, Ÿ ºÆ íº š º Ÿ {» ½ ¾ $ ¾ -.]./.].]., $ ú ú ½ ½ ú\ ½ ˆ½Å ŠÏ Ÿ úµ $ ú ½ ˆ½Å Ÿ ˆÅ ½ í½ º º œï ˆÅ í¾a 60 Ÿ ˆÅ ½ ˆ½Å ˆ½Å Ÿ ºˆÅ ½ 41.13 Ÿ ˆÅ Ÿ, 2007 ˆÅ ] \ ºˆ½Å íÿ ¾ \ ú Ÿ \ Ä, 2008 ˆ½Å ˆÅ 51.77 œ ºŸ í¾a 1.3.4 The Bharat Nirman Program of Government of India has made impressive progress during 2007-08. With its current pace, on each day of the year, 290 habitations were provided with drinking water and 17 habitations were connected through an all weather road. On each day of the year, 52 villages are provided with telephones and 42 villages are electrified. On each day of the year, 4,113 rural houses are completed. For Bharat Nirman, Rs. 31,280 crore has been allocated [including the North Eastern Region (NER) component] as against Rs. 24,603 crore in 2007-08. 1.3.5 The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is the largest initiative, introduced by the Government of India in 2005-06, to address the problems of infrastructure projects relating to water supply including sanitation, sewerage, solid waste management, road management, urban transport, redevelopment of old city areas, slum improvement, rehabilitation, environmental improvement and basic services such as community toilets and housing at affordable prices for economically weaker sections and lowincome group of the society. 1.3.6 The major objective of planned economic development in India has been the removal of poverty and improving the standard of living of its citizens. It is well recognized that poverty can only be eradicated effectively by the active involvement of the poor in the growth and development process of the country. With this major objective a scheme named Indira Awas Yojana (IAY) launched with the primary objective to provide grant for construction of houses to members of Scheduled Castes/Scheduled Tribes, freed bonded labourers and also to non-sc/st rural poor below the poverty line. Against a target of 60 lakh houses, 41.13 lakh houses have been constructed up to December 2007, and the cumulative number is estimated at 51.77 lakh houses by the end of March, 2008. 13
1.4 ž Ÿ ½ Š î œ ½«µ 1.4.1 î ½ Ÿ ½ 80 ˆ½Å ˆÅ ˆÅ ¾œ \ ˆÅ š ½ ˆÅú œï FkhA µ ½ ½ ½ ˆºÅŽ µ íú ½, ] Ÿ ½ ž ú ] ú úÿ Š Ÿ, ¾ Š ˆÅ Š Ÿ (íº ˆÅ ½), ˆÅ î Š Ÿ ( \ ú œ ú), ú«ä íˆå ú î Ÿ Ÿ ì ¾ ƒ ˆ½Å œ ž ú ¾œ \ ˆÅ ½ ˆ½Å ˆÅ ½ƒÄ ½«í Ÿ ¾]» íì Fkh Ÿ º ½«³œ ½ ĈŠ³œ ½ ˆÅŸ { ½ Š Ä ˆ½Å ú /œï ú ] ˆ½Å ] ú ˆ½Å Ÿ š Ÿ ½ ½ ˆ½Å š ½ ˆÅ ½ œ í º\ A î Ô ½Š œ Ž ½ ˆºÅŽ½ˆÅ «½ Ä Ÿ ½ š ˆÅ ˆÅ íº í¾a ƒ ˆÅ µ ½ í í¾ ˆÅ î Ô ½Š ] íº íú œï ½Š ú í¾, š ½ ½ ˆÅú ½ ž ú Ÿ ½ ˆÅŸ íÿ ¾ µ ŠÏ íˆå ½ ˆÅ ½ ˆÅ«ÄˆÅ œ ¾ˆ½Å] œ ½ ˆÅ í½ íÿa 1.4.2 «ïú ÿˆå ž ú { Ä ÿˆå ˆÅú ˆÅ œ»µ Ä Ÿ š ú ˆ½Å ³œ Ÿ ½ ú ¾ ½ ú, ½ ½ ½ œ î ½ ˆ½Å š Ä Ä ˆÅ œïš ž ˆÅ µ ˆ½Å :i Ÿ ½ œ \ ˆÅ ½ ˆ½Å ¾ ½ ½ ½ ˆÅ ½ î ú í ½ š Ÿ Ÿ ½ ½ œï Š ˆÅ í œï ˆÅ ½ ˆ½Å 1988 Ÿ ½ œ ˆÅ Š A «ïú ÿˆå î ˆ Åœ ½, ÿˆå ½ ¾ ] - ˆÅú ú«ä íˆå ú î Ÿ ½ ˆ½Å œ ú œ º Äî ½] ˆ½Å { ½ ˆÅ ½ š œï ˆÅ í¾ ¾ «ïú ÿˆå ˆÅú œ š ˆ½Å ž ú, Š µ µ 43 î daifu;ksa ˆ½Å { ˆÅ ] í í¾a 1.4.3 µ ] ˆÅ ÿˆå ½ Ÿ ½ Ä š ˆÅ \ ŠÏíµ ˆÅ ½ ½ íÿa í ½ µ ] ˆÅ ÿˆå ½ Ÿ ½ ½ î ˆÅú Š ¾µ œ íºƒä ì ] ½ œ ½ Ÿ» ÿˆå ½ ½ õú í í ˆ½Å ƒˆå ƒ ½ ˆ½Å ³œ Ÿ ½ œïˆå Ä ì A î ˆ Åœ ½ ˆÅ { ½ µ ] ˆÅ ÿˆå ½ ˆÅú º Ÿ ½ íº ˆÅŸ í¾a µ ] ˆÅ ÿˆå { Ÿ ½ œ Äœ ½ œï œ ˆÅ 1.4 Institutional Financing in India 1.4.1 The housing finance sector was dominated by informal resources till the late eighties. There were few lenders of housing loans which included Life Insurance Corporation of India, Housing and Urban Development Corporation (HUDCO), Housing Development Finance Corporation (HDFC), and Apex Cooperative Housing Finance Societies (ACHFS) with no particular support existing for the formal sector. The main aim was to channelize resources to housing sector through budgetary allocations especially for Economic Weaker Section (EWS) housing/ housing for migrated population. The housing finance industry has grown robustly over the last few years. This is due to the fact that the housing finance industry is very competitive today; lending rates are at an alltime low and lenders are offering attractive packages to customers. 1.4.2 The National Housing Bank (NHB) was established in 1988, as a wholly owned subsidiary of Reserve Bank of India (RBI) to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith. The National Housing Bank provides funds to housing sector through its refinance scheme for banks, housing finance companies and state level apex cooperative housing finance societies. Under the ambit of the NHB, institutional credit disbursals are being made through 43 Housing Finance Companies (HFCs). 1.4.3 Commercials banks are the largest mobilizers of savings in the country. Several commercial banks had set up housing financing subsidiaries which functioned as independent units with support from their parent bank. The market share of the housing finance companies is less as compared to commercial banks. Commercial banks are now 14
í½ íÿ A ¼ Ö Ÿ º ³œ ½ ˆ½Å ˆÅ Ä ] ( ½ ˆÄÅ), œ Š ˆ½Å ½œ ½ ˆÅ œ íº \ ½ ˆ½Å ˆÅ µ ½ íºƒä Ÿ ú ] ˆÅ ú í¾ A ] ½ œ ] œ Š ¼í µ œï ˆÅ ½ Ÿ ½ í ˆÅú í¾ A ½ Ÿ ½ í î ˆ Åœ ½ ˆÅ ½ œïž ˆÅ í í¾ A î ˆ Åœ ú { Ÿ ½ ˆÅ î Š Ÿ, ƒä ú í Š œ ƒ ½ Ÿ ½, ˆ¾Å œ í ½Ÿ, ú í Š œ ƒ ½ Ÿ ½, º Ÿ Ã í ½Ÿ œ ƒ ½, ½œ ˆÅ ½ í ½Ÿ œ ƒ ½, Š ¼í œ ƒ ½ Ÿ ½, ƒ ] ¾ ½ ½ dkjksckfj;ksa ˆÅú œï úa 1.4.4 œï Ÿ ˆÅ { ž í í¾ ¾ í Ÿ ] ˆ½Å ž ú Š ½ Ä, ½«:i ½ ĈŠ³œ ½ ˆÅŸ { ½ ¾ Ÿ ] ˆÅ ³ œ ½ œ Ž õ½ Š Ä ˆ½Å ½Š ½ ˆÅ ½ Ÿ ˆÅ ½ ˆ½Å œ ½ ¾ ½] ½ ˆ½Å ˆÅ ˆ½Å { š ˆÅ ÇÅ í í¾ A 1.5 ú ½ ¾ ˆÅ ½ ú œ 1.5.1 ¾ ˆÅ ½ ú œ - š íÿ ¾ ˆÅ» ½ ˆ½Å ˆÅ Ÿ ½ ˆÅ ½ íÿ, ½«³œ ½ ž ] ¾ ½ ½ Ÿ ½, ] ½ ú Ï ˆÅ ˆÅú œï ÇÅ Ÿ ½ íÿ A ˆÅ µ Ä ˆÅ ž» Ÿ ˆÅ ˆÅ ½ Š í¾, Æ ½ ˆÅ í ĈŠ³œ ½ ½ ˆÅú Ä Ÿ ½ ¾ «ï Ÿ ĵ Ÿ ½ ˆÅ í¾ A Ÿ ĵ Ÿ ½ ˆÅ ½ƒÄ ž ú ½ ž ½ ½ Ÿ ½ ½ ˆÅú ˆÅ ª¼ ˆÅ ½ œï½ ˆÅ í¾ A ú, úÿ ½ ] ¾ ½ ž ú Ô ½Š ½, œ ½, œ úä\ ¾ í ˆÅ ˆÅ º Ô ½Š ] ¾ ½ Ô ½Š ½ Ÿ ½ íº ½ Ô ½Š ½ ˆÅ ½ œï œï ³œ ½ œïž ˆÅ í¾ ¾ ž ú ˆÅ Ä ˆÅ Š ž Š 16 œï Ÿ ĵ ˆÅ Ä Ÿ ½ Š íº í¾ A 1.5.2 Ÿ ½ ½ ˆÅ ½ ú œ ˆÅú ¼ Ö Ÿ ½ ˆÅ í¾, Æ ½ ˆÅ ˆ¼Å «ˆ½Å ½ Ÿ ½» Ÿ ½{ Š œï] ˆÅ í¾a ˆ½Å Íú ˆÅú Š ˆ½Å ºŸ ˆ½Å º ½ ½ ÄŸ Ÿ» ½ œ 2003-04 Ÿ ½ ž ˆ½Å ˆÅ ½ ú œ ˆ½Å 4.5 œï ˆÅ ˆÅ A «Ä 2003-04 Ÿ ½ ˆÅ ½ ú œ ˆ½Å í ú ½ Ÿ ½, ˆÅ 3.13 œï A gaining a larger share of market. The growth is mainly attributed to their large network, access to low cost deposits, which have helped in offering home loans at lower interest rates. This in turn is affecting the housing finance companies. The housing finance companies' market is dominated by large players such as HDFC, LIC Housing Finance Limited, Can Fin Homes, Dewan Housing Finance Limited, Sundram Home Finance, Repco Home Finance, GRUH Finance Limited etc. 1.4.4 The primary market has been emerging and becoming more active through development of new products and schemes to include all segments of the population, particularly the economically and socially backward classes. 1.5 Housing Investment and GDP 1.5.1 Housing and GDP are interlinked and contribute to each others' growth, especially in countries like India which is in the process of rapid development. Housing has come to assume a crucial role as it contributes significantly to the national economy and nation building. An investment in housing and construction triggers a series of investments in various sectors. From heavy industries like steel, cement to industries like paint, furniture and even to small scale industries, housing affects many industries directly and indirectly and approximately 16 per cent, of Indian work force is engaged in construction. 1.5.2 Investment in housing contributes to the growth in GDP as housing is the second largest employment generator in the country after agriculture. As per the Central Statistical Organizations (CSO) estimate, the housing sector contributed 4.5 per cent to India's Gross Domestic Product (GDP) in 2003-04 at current prices. The contribution of housing in urban areas to the GDP was 3.13 per cent in 2003-04. 15
1.5.3 í ˆÅú ] ú í¾ ˆÅ ˆÅ ½ ú œ Ÿ ½ ˆÅ ½ Š Ÿ ú «½ Ä Ÿ ½ ˆÅ œ ú \ ] Š A ˆÅ ½ ú œ ˆ½Å œï ˆ½Å:i Ÿ ½ ˆÅ µ 2001 Ÿ ½ 3.4 œï ½ 2007 Ÿ ½ ºŸ 7.25 œï í ½ Š A ˆÅ ½ ú œ ˆ½Å œï ˆ½Å :i Ÿ ½ š ˆÅ ˆÅ{ Ä» (54 œï ) ¾»ˆ½Å (57 œï ) ½ ˆÅíú ú\ ½ í¾a 1.5.3 It is expected that the share of housing in GDP would go up substantially in the coming years. The share of outstanding housing loan as a percentage of GDP has risen from 3.4 per cent in 2001 to 7.25 per cent in 2007 (estimated). However, the mortgage debt as a percentage of GDP is far below the US (54 per cent) and UK (57 per cent). 1.5.4 ú œ î { œïÿ ˆ½Å º ž Ÿ ½ ž» œ { ˆ½Å Š ž Š 80 œï ˆÅ ˆÅ í¾ ¾ «ÄˆÅ ³œ ½ 34 œï œ [õ í í¾a ž ˆÅ œ î { ˆÅú ½ ½ Š ˆÅú ½ [õ í í¾ ¾ ½ ú œï ½ Ÿ ½ ˆ½Å ƒ ½ ˆ½Å ˆÅ µ ˆÅú ž í¾a 1.5.4 Residential property market constitutes almost 80 per cent of the real estate market in India in terms of volume and has been growing at 34 per cent, annually. The property markets in India are moving from fragmented to organized, and the sector is likely to institutionalize with the relaxation in Foreign Direct Investment. 1.5.5 11 ì ½] ˆ½Å œ ˆÅ ĈŠµ ˆÅú œ ˆ½Å º, 11 ì ½] ˆ½Å œï Ÿž Ÿ ½ Ä Ã 2007 Ÿ ½, ú ƒˆå ƒ ½ ˆÅú ˆºÅ ˆÅŸ ú 24.71 Ÿ í¾ A ½] š (2007-12) ˆ½Å ¾ ( œ Ž ú ˆÅŸ ú í ) ˆºÅ ú ˆÅŸ ú 26.33 Ÿ í ½Š ú A «ïú œ Ä ú, 2007 ˆÅ í ú ½ œ ĈŠ³œ ½ ˆÅŸ { ½ / œ Š ½ Ä ¾ Ÿ ] ˆ½Å Š ½ Ä ˆÅ ½ œï Ÿž ˆÅ º ú [ \ œï ˆÅ í¾ A (è ½ À www.planningcommission.gov.in) 1.5.5 As per the recommendation of the Working Group on Housing for the 11th Plan, the total shortage of dwelling units at the beginning of 11th Plan i.e. in 2007 is 24.71 million. The total housing shortage during the Plan period (2007-2012), including the backlog, will be 26.53 million. The National Urban Housing and Habitat Policy-2007 aims at providing housing and other basic infrastructure to Economically Weaker Sections/Low Income Groups and other sections of society at affordable rates. (Source-www. planningcommission.gov.in) 16
š -2À ¾ î Ÿ ½ ú Š ˆÅ Chapter 2: Policy Developments in Housing and Housing Finance 2.1 ú ÁˆÅ - š ž ½Š ˆÅŸ ú 2.1.1 ½ Ÿ ½, ½«³œ ½ Ÿ š ¾ œ Š ½ Ä Ÿ ½, ú œ» Ä Ÿ ½ ˆÅ ˆÅŸ ú í¾ A ú œ» Ä, Ÿ º ³œ ½, œïú Ÿ Ÿ Š Ä ˆ½Å œï ˆ½Å Í íú í¾, ] ˆ½Å œ µ Ÿ ³œ í ú Ÿ ½ ˆÅŸ ú ƒä í¾ A í œï ˆÅú ] ú í¾ ˆÅ ˆÅ ž «Ÿ ½, í ú ú ˆÅŸ ú œï ¾ º œ ½ Ÿ ½ ¼ Ö ˆ½Å ˆÅ µ [õ½š ú A Ÿ ] ½ Ÿ ½ [õ íú í¾, ] í ] š ˆÅ í¾ ] í ˆÅ ½ Ä ˆ½Å íº íÿa Ÿ ˆÅ ½ ˆÅú ½ š ˆÅ ˆÅŸ ú î œï ½ Ÿ ½ í¾ ¾ ƒ ˆ½Å Ÿ í «ï Ÿ ½ A 10 ì œ \ «úä ½] ˆ½Å Ÿ ½ í ú $ ú ú œ Ÿ Ÿ í ú ú ˆÅŸ ú ˆ½Å ˆÅ ˆ½Å, Š ˆÅ úˆåú ˆ½Å ºŸ ˆ½Å º, ½ Ÿ ½ Ÿ ˆÅ ½ ˆÅú ˆºÅ ˆÅŸ ú 24.71 Ÿ í¾ Š Ä-ÇÅŸ ½ ú ˆÅŸ ú Ÿ œïˆå ½ í¾ À- 2.1 Housing Stock, Occupancy & Shortage 2.1.1 There is an acute shortage of housing supply in the country especially in the mid-income and low-income categories. Housing supply has been mainly concentrated towards the premium category, resulting in a shortage of affordable houses. It is expected that in the near future, urban housing shortage will increase due to continuous migration and rise in the nuclear families. The problem is increasing in those states where the population is huge or where the job opportunities are enormous. The maximum housing shortage is in Uttar Pradesh followed by Maharashtra. According to the estimates made by the Technical Group constituted by the Ministry of Housing and Urban Poverty Alleviation for assessment of the urban housing shortage at the end of the 10th Five Year Plan, the total housing shortage in the country is 24.71 million. The category wise housing shortage was as follows: ž Ÿ ½ ú ˆÅŸ ú Housing Shortage in India (ƒˆå ƒ ½ ˆÅú Ÿ Ÿ ½ ) (Million No. of Units) ĈŠ³œ ½ ˆÅŸ { ½ Š Ä (ƒä» ) Ÿ Ÿ»í ( ƒä] ú) Ÿ š Ÿ»í \\ Ÿ»í ½Š Š Ä Category ú ˆÅŸ ú ( 2007 Ÿ ½ ) Housing shortage (as on 2007) Economically Weaker Section (EWS) 21.78 Low Income Group (LIG) 2.89 Middle Income Group 0.04 High Income Group Total 24.71 è ½ À í ú $ ú ú œ Ÿ Ÿ (www.mhupa.gov.in) Source: Ministry of Housing & Urban Poverty Alleviation (www.mhupa.gov.in) 17
11 ì œ \ «úä ½] Ä Ã 2007-2012 ˆ½Å ¾ ú ˆÅŸ ú 26.53 Ÿ ˆÅ œ ] ½ ˆÅú ž í¾ µ Ÿ œïˆå í¾ À- Housing shortage is likely to go up to 26.53 million during the Eleventh Five Year Plan i.e. 2007-2012 as detailed under: 11 ì œ \ «úä ½] ˆÅú š (2007-2012) ˆ½Å ¾ Ÿ ˆÅ ½ ˆÅú ˆÅ Housing requirement during 11th Plan period (2007-2012) 11 ì œ \ «úä ½] ˆ½Å œï Ÿž Ÿ ½ ú ˆÅŸ ú œ ½ ˆ½Å Æ ú ÁˆÅ ˆ½Å Æ ˆÅ\\ ½ Ÿ ˆÅ ½ ˆÅ Housing Shortage at the beginning of 11th Five Year Plan (ƒˆå ƒ ½ ˆÅú Ÿ Ÿ ½ ) (Million No. of Units) 24.71 Addition to household 8.71 Addition to housing stock Up-gradation of Kutcha houses 11 ì œ \ «úä ½] š Ÿ ½ ˆºÅ ú ˆÅ è ½ À í ú $ ú ú œ Ÿ Ÿ (www.mhupa.gov.in) Total housing requirement during the 11th plan period 7.27 0.38 26.53 fefy;u 2.1.1 í ú $ ú ú œ Ÿ Ÿ ˆ½Å º, í ú ½ ½ Ÿ ½, Ÿ ˆÅ ½ ˆÅú ˆºÅ { ³ ˆ½Å 97 œï ½ š ˆÅ Ä Ã 25.73 Ÿ ƒˆå ƒ ½ ˆÅú { ³ $ ú ½ ¾ œ Š Ä ˆ½Å œ ½ ˆ½Å í¾ A ú ˆÅŸ ú ˆ½Å Ÿœ»µ Ä ½ Š, ú ˆÅŸ ú ˆ½Å Š ºµ Ÿ ˆÅ Ÿ ž ú íÿ - ] ¾ ½ ˆÅ, Ÿž ˆÅ º - º š ½ ˆÅ ž, Ÿ ˆÅ ¾ š ˆÅ ž ú õ ƒ A 2001 ˆÅú ] Š µ ˆ½Å ˆÅ õ ½ ˆ½Å º, ž ˆÅú í ú ú ˆÅ Š ž Š 15 œï Š ú- ½ Ÿ ½ í í¾a ƒ ˆ½Å Æ, «ïú ] ˆÅú ½Ä µ Š ( ½) ˆ½Å 58 ½ \ ÇÅ ˆ½Å ºŸ ½ ˆ½Å º 39 œï œ 20 «½ Ä ½ ž ú š ˆÅ Ÿ ½ Š ú ú œ º Ä Ÿ ½ í í½ ½A ƒ ˆ½Å Æ, ƒ ú Š ˆÅ 61 \ ÇÅ Ä í¾ ˆÅ ] í ž Ÿ ½ $ ú ½ ˆÅú ˆºÅ Ÿ ½ 18 Ÿ Æ ˆÅŸ íº íÿ, íì í ú $ ú ½ ˆÅú Ÿ ½ 1993-94 ½ 2004-05 ˆ½Å ¾ 4.4 Ÿ Æ [õ½ íÿa 2.2 ž Ÿ ½ í ú ( œ ½ ½Ä í Š ) À ˆÅ µ Ä ˆÅ œ œï½ A 2.2.1 ½ ú, ˆÅœ õ ¾ ª Ÿ ˆÅú ú Ÿ» ž» ˆÅ íÿ œ, º ¾ Ÿ ˆÅ ª ˆ½Å Ÿ ] ú 2.1.2 As per the Ministry of Housing & Urban Poverty Alleviation, more than 97 per cent of the total housing requirement i.e. 25.73 million units are required for poor and low income segment households in urban areas. Apart from the absolute number of housing shortage, there is also a qualitative dimension viz., lack of basic amenities, poor quality of houses and overcrowding etc. of housing shortage. As per the census (2001) about 15 per cent of India's urban population live in slums. Further, as per the estimates of the 58th Round of NSSO, 39 per cent of household were living in slums settlements for more than 20 years. Further, the 61st Round of NSSO has shown that while there has been a decline of 18 million persons in the total number of poor in India, the number of urban poor has risen by 4.4 million persons, during 1993-94 to 2004-05. 2.2 Affordable Housing in India: A Crucial Perspective 2.2.1 There are three basic human needs viz. food, clothing and shelter. The life of a human being 18
ˆÅú ˆÅ œ íì ˆÅú ] ˆÅ ú í¾ A ª ˆÅú { ³ Ÿ» ž» { ³ ½ Ÿ ½ ½ ˆÅ í¾, ] œ ÄœÏ Ÿ š ] \ í A 2.2.2 ž Ÿ ½ ½ Ÿ ½ \ Ä] ˆÅ ž íÿ ¾ ½ ˆ½Å ĈŠŸ ] ˆÅ ˆÅ œ ˆÅ ˆÅ Ÿ ˆÅ œ õ í¾ A œ, ž ú ˆ½Å í ú í ú ½ ˆ½Å ž œ í º ½ œ œ í ½ íú \ º ¾ ½ ˆ½Å í ˆÅ ] Ÿ í¾a ž Ÿ ½, í ú œ \ - Ÿ Ä ž ú ˆÅ ž ú ĈŠ:i ½ ˆÅŸ { ½ ¾ Ÿ Š Ä ˆ½Å, ˆ½Å \ ½ ½»Ÿ í¾ A œ, î ½î :i ½ í ½ Š í¾ ˆÅ í ˆÅ ˆÅ Ÿ š Š Ä ž ú œ ½ í ˆÅ ˆÅ ½ Ÿ ½ Ÿ Ä íì í¾a œ \ «úä ½] ½ ¾ íº ú œï½ ˆÅ ½] ½ ˆ½Å { ž ˆÅ ½ œ Äœ œï ½ ˆ½Å ]» ž ú ú ˆÅŸ ú ˆÅ ˆÅŸ í ½ ˆÅ fu:rlkfgr ˆÅ ½ ˆÅ ˆÅ Ä í ] í¾a 2.2.3 ž Ÿ ½, í ú ˆÅ ½ œ ¾ œ -Ÿ š ˆ½Å œ ½ ½ š Ÿ ^ ] í¾ ¾ í ˆÅ ˆ½Å Ÿ ˆÅ ½ ˆ½Å íì; ˆÅ Ÿ ˆÅ ú ½ ˆÅú í ú Š ½ rkri;z í¾a ž Ÿ ½ œ œ ½ ˆ½Å í ú ˆÅ ž ˆÅ ĈŠˆÅ«í¾, ] ½ í½ œ ½«µ, ¾ ] ¾ ú œï Ÿ ˆÅ t:jrksa ˆÅ ½ œ» ú ˆÅ ½ ½ ½ˆÅ í¾ A ˆÅ º ˆ½Å œ ˆ½Å œ ½ ˆ½Å Æ Š» Ÿ ^ í¾, í ÄŸ ½ Ÿ ½ \Ž íì Ÿ ] ˆÅ ] í ĈŠŠ š, ž» Ÿ ˆÅú º Äž ¾ œ î ˆ½Å [õ ½ Ÿ» ½ í íº ½ ˆÅ ˆÅ ½ ½ í ú ˆÅú { ³ ˆÅ ½ \\ Ÿ š ¾ \\ Š Ä ˆ½Å [õ í¾ A À ] ½ ˆºÅŽ Ÿ í» ˆÅ ] í¾ í í ˆÅ í ú Ÿ ˆÅ ˆÅú ˆÅ ½ { ³ í¾, ˆÅú œ ½ í š ˆÅ ½Š íÿ A ºŸ À ž ˆ½Å 42.8 Ÿ Æ 15.2 œï í ú œ ˆÅ ˆÅŸ ½ ˆÅú ú ƒˆå ƒä Ÿ ½ í ½ íÿa ž ˆÅú ] Š µ, 2001 ˆ½Å º 35 œï í ú ] ˆÅ ˆÅŸ ½ ˆÅú ƒˆå ƒä Ÿ ½ í ú í¾ A ½ ½ œ ½ ˆ½Å 68 œï œ ½ Ÿ ½ \ š ˆÅ íÿa ˆºÅ í ú ú ˆ½Å Š ž Š 81 Ÿ 25.7 œï Æ ˆÅ ú $ ú ú ½ ˆ½Å ú\ ½ íÿa cannot be imagined without safe, secure and comfortable shelter. The need for shelter is one of the fundamental requirements, which merits priority attention. 2.2.2 The housing sector in India holds tremendous potential and has a positive impact on the economic and social development of the country. However, the provision of 'affordable housing for all' is a complex problem with challenges emerging from various facets of the urban sector. In India, the discussion on affordable housing has till now revolved around housing for EWS and LIG categories. However, it has been increasingly observed that even MIG are not able to afford housing for them. Despite considerable efforts from the Government of India through the fiveyear plans and several conducive policies, narrowing the gap in housing shortage remains a daunting task. 2.2.3 In India, affordable housing is perceived to be related to low and lower middle income households and relates to the affordability in terms of the cost of purchase of the house rather than the rentals. The lack of affordable housing is a significant hardship for low income households in India, which prevent them from meeting their basic needs like nutrition, healthcare and education. But, what is perceived to be applicable only to the low income households may not hold well in current scenario, where several factors including economic activity, scarcity of land and soaring property prices have increased the need for affordable housing even amongst the upper middle income and high income groups. Therefore, there are more people than what is realised who need affordable housing. Approximately, 42.8 million persons or about 15.2 per cent of India's urban population live in slum settlements. According to Census 2001 of India, 35 per cent of urban households live in single room dwelling units and 68 per cent of such households have four members or more. Approximately, 81 million persons or 25.7 per cent of the total urban population are below the poverty line. 19
ÁÆ -1 À í ú \ º ¾ Ÿ ½Š ½ ˆ½Å ˆÅú š Ä ˆÅ ½ ˆ½Å ½ ˆÅ µ Ÿ í œ»µ Ä íÿ, ] ½ ƒ œïˆå íÿ À- (i) î ¾ { ˆÅ œ íº \ (ii) ¾ î ˆÅú í ú í ú ½ˆÅ ˆÅ µ ½ ½ œïž í ½ ú í¾ ] Ÿ ½ œ î, Ÿ ¾ ͈Š¾ î ú ú, Ÿ» ¾ î ú { ˆÅú ½«Ÿ íÿ A ˆÅ ú ž ú Æ ˆ½Å, ˆÅú í ú Ÿ ˆ½Å ] Š ú, ] ½ ½ ½ ˆÅ µ ½ œ ž Ä í ½Š ú, ] ¾ ½ Ÿ ½ ¼ Ö, ª ½ Ÿ ½ ¼ Ö, º, ½{ Š ¾ ] ½ Ÿ ½ œ Ä ˆÅ º Ÿ ¾ ½ š ˆÅ µ ½ ˆÅú í ú ú Ÿ º ˆÅ µ ½ ½ œïž í ½ ú í¾ À- ˆÅ. Ÿ». Š. š ˆÅ (efvxst) œ ž Ÿ ½, Ÿ ˆÅ ½ ˆÅú ˆÅúŸ ½ ˆÅú ž ½ ], œ ˆÅú ¾ ž š ˆÅ œ ¾ µ fof'k"vrk,a, í ú ds fy, š ˆÅ egroiw.kz í¾ A '' í ú '' ˆÅ œ Ä í¾ ˆÅ ] ½ ½ ˆÅ œï ½ˆÅ œ œ Ÿ ˆÅ í ½ ½ ˆ½Å œ ½ ˆÅ ½ ˆÅ ˆÅ ˆ½Å A í ú ½ í ½ í¾ ˆÅ ] ˆ½Å ˆºÅ Ÿ» ˆÅ ½ Ÿ ˆÅ Ÿ ½ í ½ œ í ˆÅ ˆ½ÅA í ú œ ÄŸ Ÿ ½ \ \ Ä ½ Ÿ ½ œ Ž ½ ˆºÅŽ œ Ÿ ˆ½Å ¾ ú œ î ˆ½Å Ÿ» ½ Ÿ ½ ž ú ¼ Ö ˆ½Å ˆÅ µ Ÿ í œ»µ Ä í ½ Š ƒä í¾a ž Ÿ ½ ¾œ \ ˆÅ î ú, ] ¾ ½ ÿˆå ¾ î ˆ Åœ Ÿ š Š Ä ¾ \\ Š Ä ˆÅú íº š ˆÅ í ˆÅ íú íÿ Ÿ Š Ä ˆÅ ˆÅ õ í Ÿ ˆÅ µ ½ ½ ½ í Š í¾ À- µ ] ½ Ÿ A š ˆÅ ˆÅ ½ ú ¾ ½ Š A ˆ½Å µ í½ º ž» Ÿ ˆÅ í ½ A Ÿ ] ½ ú{ œ ž Ä ˆÅ ú í¾a ˆÅ ˆ½Å ú ˆÅ vhkkoa úˆå Ä œ ĈÅ, ] ¾ ½ œ, Ä ž»«µ í ú ˆÅ ½ Ÿ Š ¾ œ» Ä ˆ½Å º í ˆÅ í ½Š A Box1- HousingAffordabilityandChallenges The two critical factors determining provision of housing for the masses are: (i) Accessibility to housing finance and housing market (ii) Affordability of house and housing finance. Affordability is influenced by a range of factors including wealth, fiscal and monetary policies, house price and financial market characteristics. For any individual, the affordability of housing will change over time, depending on such factors as income progression, number of dependents, age, job security, and changes in interest rates and so on. But generally, the affordability of mortgage loans is dictated by three main factors namely: a) House price b) Income c) Mortgage products In India, given the house price range, household income and the various mortgage products and loan characteristics, assumes greater significance on affordability. 'Affordable housing' is a term that has the potential to transform the dream of every family in the country to own a house into reality. Affordable housing refers to a dwelling where the total housing costs are affordable to those living in that housing unit. The current debate on affordable housing has assumed significance with the rapid rise in residential property prices across the country in a short span of time. The formal institutional finance in India such as the banks and the housing finance companies is largely perceived to be serving the middle and higher end of the market. A large segment of low income market remains unserviced due to the following reasons: Credit Risk High transaction and service cost Absence of land tenure for financing housing Irregular flow of income due to seasonality Lack of tangible proof for assessment of income Unacceptable collaterals such as crops, utensils and jewellery 20
2.2.4 í ú œ ½ ˆ½Å Ÿ ] ˆÅ œ ú í¾ ˆÅ ˆÅ ½ ˆ½Å ž ú ½ˆÅ Ÿ ½ íÿ A Ÿ Š - œ» Ä Ÿ ½ ˆ½Å ˆÅ µ Ÿ Š ú í ½ ú í¾ ] ½ ˆÅ ˆÅ ½ ¾ ½ ˆÅ ½ ˆÅ ½ ½ ˆ½Å Ÿ ĵ ž ˆÅŸ ½ ˆ½Å œï ˆÅ«Äµ í ½ í¾a nqfu;k Hkj esa oguh; vkokl ds fy, Lohd`r fn'kk funsz'k ds rgr ifjokj dh ldy vk;k dk 30% ls de ewy; ekuk x;k gsa vkokl ewy; ds varxzr izk;% dj ohek vkoj.k,oa lkeku; mi;ksfxrk ykxrsa 'kkfey gksrs gsaa 2.2.5 ž ú ˆ½Å í ú œ \\ ú ˆÅ Ä, ] ½ ž ˆÅ œ ˆÅ Š í¾, ˆ½Å º, ƒ Ÿ ˆÅ Ÿ š ú Ï íú íì ˆÅ ] í¾, í ½ Ÿ ½ ĈŠˆÅ ¾ $ ú ú» ˆÅ ½ ½ š µ ú ½ ˆÅ ½ Š ž ú :i ½ œïž ˆÅ ½Š úa 2.2.4 Affordability has to be addressed both on the demand and supply side. Affordability can bring with it not only social inclusion but also prove to be a large business opportunity. The demandsupply gap, coupled with strong demand drivers, offer developers and investors alike the potential for asset creation and profits. Worldwide accepted guideline for housing affordability is a cost less than 30% of a household's gross income. Housing costs considered in this guideline generally include taxes and insurance for owners, and usually include utility costs. 2.2.5 According to the High Level Task Force on Affordable Housing for All which is set up by Government of India, if this problem is not dealt at the earliest, it may seriously affect the country's economic growth and poverty reduction strategies. ÁÆ -2 À í ú À í ¾ ž ½ˆÅ ½ ½ ½ í ú ½ ˆÅú ˆÅŸ ú ˆÅ ½» ˆÅ ½ ˆ½Å ž ú ƒä íÿ A ú Ÿ º ˆÅ ] ½ ½ ˆÅú ˆÅŸ ú ˆÅ ½» ˆÅ ½ Ÿ ½ í ˆÅ ˆÅ ½ íÿ, ½ íÿ ½ ú ¾ˆ½Åµ ú {, Ÿ ˆÅ ½ ú tksu œïµ ú ¾ ž» Ÿ ÿ ˆ ÅŠ ] ˆ½Å ˆÅ Ÿ ¾ ͈Šú ž ú ºˆ»Å í ½ ˆÅ š ˆÅ ½ ¾ µ ½ œ Š ½ ú š ú ˆÅ í µ ž» Ÿ Ÿ ˆÅ í ½ í¾a ž Ÿ ½ ž» Ÿ Ÿ ˆÅú Š ú Ÿ ½ ˆ½Å ˆÅ µ ½ˆÅ Ÿ œ ¾ í ½ ] ú íÿa ÄŸ Ÿ ½ ž» Ÿ Ÿ ˆ½Å '' ºŸ Ÿ '' í ½ í¾, œïÿ µ ÇÅú ½ ¾ ˆÅ - Š ú ú ½ í ½ ú íÿ A ž ú ˆÅ ½ ½ Ÿ ½ Š ú Ÿ í ½ í¾ ˆÅ º š ˆÅ ˆÅ ú ½ ½ Ÿ ½ œ š íì í ½ œ í¾a ž Ÿ ½ ž ú Ÿ Š ú º³ ˆÅ ½ ˆ½Å ˆÅ Ä ƒä ˆÅú ] íú í¾a Ÿ ˆÅ ½ Š - Š ˆÅ íì ½ ] ˆÅ í¾a Æ ½ ˆÅ í œ š º š ½ ] œ» Ä œ ƒä, ½ ž, ¾ ½{ Š ˆ½Å š ] ½ ˆÅŸ ú ˆÅ ½» ˆÅ ½ Ÿ ½ í ˆÅ í ½ ˆÅ ½ íÿ A í µ ½ ½ Š í¾ ˆÅ Box 2-Affordable Housing: Solutions& Future Prospects Various countries have designed several policies to address the problem of inadequate supplies of affordable housing. Three prominent tools which can help in addressing the issue of inadequate housing are development of secondary market, inclusionary zoning, and land banking coupled with tax and fiscal policies that result in reducing the cost of mortgages and the cost of borrowing. One example of policy support is related to the structural constraint of land titles. The absence of a guaranteed land title system in India has farreaching implications. Current land ownership records only provide "presumptive title": the sale deed and the tax-paid receipt. All developed countries guarantee titles; but most developing countries do not. In India also, steps are being taken to introduce 'Title Guarantee'. Housing can no longer be seen in isolation than integrated delivery of services such as water supply and sanitation, health care, education and access to livelihood which is required to augment the housing gap. Examples show that for every rupee invested in such public 21
ƒ Ä] ˆÅ º š ½ œ \ Ä ˆÅ ½ Š œï ½ˆÅ ² œ ½ $ ú œ ú 7 ² œ ˆÅú œ» ] ú dekrkk í¾a í ˆÅ ž ú œ Ÿ ˆÅ íì ˆÅ ½ íÿ A ] í ½í³ «ïú í ú ú úˆå µ Ÿ ˆ½Å í ˆÅ ú ˆÅ ½ ½ ½ ½Š ½ ˆÅú ˆÅ ˆÅ ½ œ» ˆÅ ½ ˆ½Å ˆÅ œ œ š ˆÅ ½ ˆÅú ˆÅú ] ˆÅ ú í¾a í ú Ÿ ˆ½Å ½ˆÅ ˆÅ œ íÿ ^ ½ ú Ÿ ½ Ÿ ( ] Ÿ ½ ˆÅ ž»- Ÿ ú ½ œ î ˆÅ ˆºÅŽ ž Š ˆÅ œ ½ í¾ ¾ ½«œ î ˆÅ ½ ž ú í¾) A ˆÅ \Žú ƒ Æ ú Ä Ã ª Ÿ ˆÅ Ÿ ĵ ˆÅ Ä Ÿ ½ ½Š ( Ÿ ĵ Ÿ ŠÏú ˆ½Å œ í ) ˆÅ ½ ˆÅ Ÿ œ ½ ˆ½Å ˆÅ œïž ˆÅ ú œ Ÿ Š í¾, ½«ˆÅ, ĈŠ«½ œ Ž õ½/ Ÿ Š ½ Ä ˆ½Å { ½ Š ¾ ž» Ÿ œï ½Š ½] ˆ½Å ½ Ÿ ½ ž ú ˆÅ Ä ƒä ˆÅú ] íú í¾ ] ½ Ÿ Š Ä ¾ Ÿ ª - ½ íº, ž» Ÿ ˆÅ µ, ú ú ½ ½ ½ Ÿ ½ íºÿ { ½ Ÿ ˆÅ ½ ˆÅ Ÿ ĵ, ú Ÿ ŠÏú ˆÅ œï ½Š ˆÅ ˆ½Å Š ½ ˆ½Å œï½ µ Ÿ ú í¾ ¾ Ÿ ĵ Ÿ ½ š º ˆÅ œï ¾Ô ½ Š ˆÅú ˆ½Å œï ½Š ˆÅ ½ [õ ½ ¾ ] ú ½ ½ ^ ½ ú ˆÅ ½ ˆÅú Ÿ ½ ] ¾ ˆ½Å Í ˆÅ œ í ˆÅ ½ ˆÅú { ³ í¾ ] ½ ½ ˆÅú ˆÅŸ ú» í ½A ˆÅ ˆÅ ½ í ú ˆÅú Ÿ ˆÅ ½» ˆÅ ½ ˆ½Å ˆÅ ú ] ú ^ ½ ú ˆ½Å ˆÅ µ Ÿ ½ úˆ¼å œï ÇÅ ˆÅ ½ º Æ Š \ í A œï ƒ ½ ˆÅ ˆÅ ½, ˆÅ Á ½ ú ˆÅ ˆÅ ½ ¾ íˆå ú Ÿ ½ ˆÅ ½ ˆÅ ž œï ½ í ½ˆÅ $ ú ½Š ½ ˆÅ ½ ½ Ÿ ˆÅ œ š ˆÅ ½ ˆ½Å œï ½ í ˆÅ ] ˆÅ í¾ A ˆÅ ú ˆÅ ½ ˆÅ ½ ž ú $ ú ½ ˆ½Å ½ ˆ½Å { ¾ ˆÅ ½ ¾ º š œï ˆÅ ½ ˆ½Å $ ¾ - ˆÅ ú Š ½ ½ ú Š ½ ½ ž ú í ½ ú \ í A ½ ¾ œ º Ä œï ½ Ÿ ½ í ú $ ú ½ ˆ½Å ½Š ˆÅ ½ º \ ˆÅ ˆÅ ½ íÿ ˆÅ ½] ½Š ½ ˆ½Å ¾ ˆÅú ] ] í½ í í¾ ] í½ ˆÅ ] í¾a.. ÿˆå ú Š œ ½ ˆ½Å Ÿ š Ÿ ½ œ ½] î œ ½«µ ú ¾ { ˆÅ ½Š ] Ÿ ½ Ÿ ½«î ú ½ Ÿ íÿ ] ½ { Ÿ ½ í ú Š ú, µ Ä ˆÅ ž» Ÿ ˆÅ ž í í¾ A ˆÅú ˆÅŸ ú ˆÅ ½» ˆÅ ½ ˆÅú Ÿ ½ œ ú ½ \ ž» Ÿ ˆÅ ˆ½Å.. ÿˆå ž ú ½ˆÅ µ ú ½ Ÿ ½ ˆÅ ½ Ÿ ˆÅ ½Š A infrastructure, the poor are able to derive Rs 7 worth of utility. of their own capital. However not everyone can manage to afford to own a home. Stocks of publicly created, and innovatively managed rental housing developed by government bodies under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) could help in addressing the needs of such people. There are a range of affordable home ownership options, including shared ownership (where a tenant takes on rent part of the property from a landlord, and owns the remaining property). Sweat equity i.e. contribution of labor by the owner in construction (including in production of construction material) has been recognized an effective measure for improving the affordability of home, particularly, by EWS/LIG households. Also steps towards zoning and land use planning that encourages low-income housing, and mixed-income neighbourhoods, reserving of land, adopting vertical construction in congested areas, reducing prices through use of low cost materials, encouraging the use of modern technology for creation of housing stock and partnering with the private sector need to be initiated by the State and Central Governments to augment the housing gap. The Government needs to rationalize development control regulations and streamline approval procedures through public private partnerships to address the problem of affordable housing. Private developers, colonizers and co-operative societies can be encouraged further with tax benefits and other incentives to make housing available to the economically poor at nominal rates. Government bodies should also seek support from NGOs and other civil society organizations in planning houses for the poor in terms of design and facilities. They can ensure the involvement of the urban poor in housing and resettlement efforts so that the plan is developed by those who have to be settled and relocated. NHB is taking a decisive role through policy measures such as a pro active project finance policy and market interventions which includes developing innovative financial instruments for bringing flexibility in the housing market. For doing justice to its role in filling the housing gap, NHB will further have to engage itself in a multipronged strategy. 22