With a view to bridge the demand-supply gap in urban housing with a focus on low-income groups, the government on Friday announced a new policy that addresses the challenges with regard to availability of affordable shelter.
The Centre aims to spend Rs 361,000 crore through the public-private model to build about 25 million houses across the country over the next five years. The National Urban Housing and Habitat Policy, 2007, already approved by the Cabinet, envisage increased public-private partnership in the housing sector and encourage integrated townships in urban areas across the country.
?The urban housing shortage has been estimated at about 24.7 million units at the end of the 10th Five Year Plan. About 99% of the shortage lies in the economically weaker sections and low-income groups. Focus under this plan would be on symbiotic development of rural and urban areas in line with the objectives of the 74th Constitution Amendment Act,? urban poverty alleviation minister Kumari Shailja said.
Inviting private partners from within and outside the country, Shailja said the state governments, which would help implement the policy, are expected to give incentives to the private players such as land availability at cheaper prices, use of spatial incentives like additional floor area ratio (FAR), and transferable development rights. ?At least 10-15% of land in every new public-private housing projects or 20-25% FAR whichever is greater would be reserved for low income group through appropriate spatial incentives,? she added.
As per the policy, private players will be permitted land assembly within the purview of master plans. Micro finance institutions would also be promoted at state level to expedite flow of finances, the policy states. Asked about ensuring the proper implementation of the policy, Shailja said: ?We have set up a special monitoring committee to ensure the implementation of the plan and states would also be asked to set up separate committees for the same.?
The government is simultaneously working on a model rent control Act that would replace the current one and pave the way for use of nearly 5,00,000 houses locked up due to litigation.