Susheel Kumar, I.A.S. Joint Secretary, Ministry of Housing and Urban Poverty Alleviation Government of India 1

Sustainability Affordability 2

Affordable Housing: Individual dwelling units with a Carpet Area of not more than 60 sq. mt. and preferably within the price range of 5 times the annual income of the household as notified, either as a single unit or part of a building complex with multiple dwelling units. 3

Affordable Housing Projects: Housing projects where at least 60 percent of the FAR/ FSI is used for dwelling units of Carpet Area of not more than 60 sq. mts. The project shall also reserve 15 percent of the total FAR/ FSI or 35 percent of the total number of dwelling units for EWS category. 4

The urban housing shortage in the country was estimated to be around million in 2012 (Technical Group on Urban Housing Shortage – TG ) Over 56.18% pertain to the EWS and over 39.44% to the LIG category About 600 million Indians are projected to reside in urban areas of India by 2031 As per a projection by the McKinsey Global Institute, the housing shortage could go up to 38 mil units by

Occupied Census residential houses grew from to mil between 2001 and 2011 In the last decade the number of households have grown by 3.9 percent annually, which is lower than 5 percent growth in housing stock The policy challenge therefore is not to increase housing stock in general but focus on increasing housing stock for the EWS and LIG segments, which consists of percent of the housing shortage 6

Past Efforts: UCLRA Repeal Land Reservation and other reforms under JNNURM. Annual income of Rs. 100,000 for EWS and Rs. 200,000/- for LIG households. Initiatives in the pipeline: Real Estate (Regulation and Development) Bill, 2012 New Core Definitions for EWS and LIG : EWS: sq.m Carpet Area LIG A : sq.m Carpet Area LMG B :41-60 sq. m Carpet Area 1 8

Initiatives in the pipeline (continued): New Model Rent Bill under preparation and a Task Force on Rental Housing has been set up to make policy recommendations on boosting Rental Housing Sector A Committee on Streamlining Approval Procedures for Real Estate Projects (SAPREP) under MoHUPA, is in an advanced stage of making recommendations 1 9

Housing Finance Scenario Credit to housing sector in Gross Bank credit has gone up from 3% (Rs 11,404 crs) in 1999 to 9.28% (Rs. 3,46,110 crs) in March 2011 and to 8.88% (Rs.3,88,020 crs) as on 31 st March However, Smaller loans of up to Rs 5 Lacs for EWS/LIG by public sector banks (HFCs) in was only 22.7% (8.9% ) and declined to 14.7% (3.4%) in

Interest Subsidy: Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) to be scaled up as Rajiv Rinn Yogana scheme as announced by Honble PM- the loan against which 5% interest subsidy is received will be increased to Rs 5 lakhs from the current 1 lakh. Proposed target for 12 th Plan 1.0 million under RRY. Credit Risk Guarantee Fund with a corpus of Rs.1000 Crores has been set up. 2 11

Past Efforts: JNNURM/RAY Proposed target for 12 th Plan 1.0 million under RAY. National Program for Urban Homeless and the Affordable Housing in partnership Scheme 3 JNNURM Progress Nov 2012 No. of Projects Approved1610 No. of Cities/Towns covered992 No of DUs Approved Total Project Cost Approved Rs Cr

ECB and FDI are already permitted Efforts of M/o HUPA: Pitching for Including Affordable Housing, as infrastructure facility Seeking concessions for affordable housing projects under income tax and other taxes 4 13

Thank You 14