Rural Housing Schemes by Govt of INDIA

CHAPTER - ill

RURAL HOUSING SCHEMES IN INDIA

- A RESUME'
Housing is one of the basic requirements of human beings.
Adequate shdter for each and every household is a fundamental pre-requisite for
a healthy l i g in any society. Along with low housing requirements proper
habitat and congenial environment are also emphasized by the United Nations in
various conferences and meetings conducted all over the Globe. From a social
point of v i w a house provides significant economic security and status in
society. For a shetterless person a house brings about a profound social change
in his existence, endowing him with an identity. A house or shelter, how so ever
tiny serves that aspect of basic needs of poor households without which it is
difficult to survive. It provides them both physical and mental strength and
psychological base on which they can fall back while accessing other basic
needs such as food, clothing, etc. For a poor household, a house constitutes an
asset that can be offered as a collateral security for a loan during difficult periods.

A house also protects a poor household from the vagaries of
nature, in the absence of which they are forced to take to streets and live in
open. Apart from a house provides security to people. Desire to have a shelter of
any kind devoid of sanitary facilities can well be observed in urban areas, where
the slums exist for providing shelter to the people of lower income groups. Those
who cannot obtain a shelter in slums are compelled to spend their nights in

footpaths, railway platforms or even at public places. The scene of rural areas
are different from urban areas where slums obviously do not exist but absence of
shelter can very well be observed among the weaker sections. Mostly landless
labourers, members of the weaker sections are providing sheltering landlord's
house as attached or bonded labour or as servants and maids in lieu of work.
The rural scenario is fast changing with the implementation of land reforms
programme, cropping pattern, system of wage payment and other newer
avenues for work, which has been opening up gradually. As a result more and
more weaker sections of the society are displaced from their existing shelter.
In India nearly three-fourth of population live in rural areas. It is
here that the housing needs are most unmet. As a matter of fact the problems of
homelessness and slums in urban areas are largely on spillover problems of
inadequate rural habitat.
In 1988 the United Nations Organizations called upon different
Governments to take steps for the formation of National Housing Policy to
achieve housing as a part of housing problem .
NATIONAL HOUSING POLICY (NHP)
The NHP announced by the Government recognized the following:
1. Housing as a basic need.

2. Housing as a production activity that stimulates employment and

generation of savlngs.
3. It also outlines the steps for dealing with various constraints to housing

activity.

The NHP identified the following areas for action that are dealt with
the problems of rural housing.
i. Prevention of alienation of homestead land and tribal lands.

ii. Avoidance of unnecessary displacement of rural settlements due to

development projects.
iii. Rehabilitation of households affected by natural calamities.

iv. Rural housing development agencies for the supply of credit and materials
on flexible terms suitable for local requirements.
v. Giving special attention to the needs of SCs I STs and other
disadvantaged groups.
vi. Linking rural housing with the Integrated Rural development Programme
(IRDP) and Jawahar Rozgar Yojana (JRY) for accentuating the pace of
rural housing and also the related programmes of asset creation and
employment generation.
vii. Setting up of suitable Institutional structure for strengthening the existing
rural development agencies at state, district and local levels to meet the
need of the housing sector.
Considering the importance of providing shelter to shelter less in
rural India, Government had come out with certain programmes and projects,
which were incorporated in the five-year plans. In this process Government
identied SCs 1 STs, landless agricultural labourers, non agricultural labourers,
artisans, economically weaker sections, socially marginalized groups such as
women, physically handicapped and victims of natural calamities as a special

category of shelter less communities and given much importance in the National
Housing Policy 1988. In fact the draft NHP that was placed before the Parliament
during 1988 stressed a particular goal of 'eradicating houseless ness by AD
2001".

NHP 1992

In each and every five-year plan certain modification with
exclusions and inclusions are taken place in the welfare and development
programmes laid down for rural population. After the draft plan, again in 1992
NHP was placed before the Parliament with linkages to the development aspects
such as alleviation of poverty, environmental protection, conservation of
heritage, settlements, planning and rural employment .
In 1994 another NHP was adopted shifting the Government's role
from builder to facilitator of housing activities . This policy has a specific objective
that gives scope to vulnerable and marginalized sections of the society to get
affordable shelter . In providing shelters to shelter less, role of social action
groups was fully recognized .
NHP 1998
The government in its National Agenda for

Governance stated

"Shelter is a basic human requirement that needs to be met in a priority basis .
We are therefore committed to evolving a NHP in consultation with the State
Governments aimed at providing housing for all . Towards this end we shall
facilitate construction of twenty lakhs additional housing unit annually . As in
other programmes, the emphasis will be on the benefits to the poor and the

deprived". In pursuance of this commitment, the Governments announced the
NHP 1998 on July 30, 1998 .
The basic thrust of the policy is in creating a strong publicprivate
sector partnership to resolve housing and habitat issues. To lure the private
sector to make investment in infrastructure sector, the Government has offered
the package of fiscal and other concessions so that the private sector can be
motivated to take up the task for the housing for poor. These concessions are
proposed to be linked with housing for vulnerable sectiins . The Govemment is
of the view that the gap in resources for housing and infrastructure cannot be met
form the public exchequer. It logically follows that no housing policy can make
any significant headway without massive participation of the private sector. The
Government intends that the private sector would be persuaded to invest a part
of their profits for the housing needs of the poor.
In this connection the ninth five-year plan (1997 to 2002 ) has
rightly stated "Housing has been primarily a self help a d i v i . The housing policy
and programmes have to recognize that State intervention is necessary to meet
the housing requirements of the vulnerable sections and to create an enabling
environment in accomplishing the goals of "shelter for all", on a sustaining basis.
The very premise of the Housing Policy 1998 is therefore questionable, if it is
intended that private sector would funnel its resources for housing for the
economically weaker sections
The National Rural Housing and Habitat Policy 1998 states that "At
present the rural housing and to a large extend informal housing do not benefit

from the outcome of research and development. Efforts will be made to
disseminate information about new technologies. In this regard a mission
approach may be adopted." In view of this Government has decided to launch a
National Rural Housing and Habitat Mission .
Conceptually, the "Mission Approach" will bring a new sense of
urgency, seriousness and emphasis on fixed goals and clear time frame. The
emphasis will not be merely on speedy construction of the houses, but
construction of quality housing using the most cost effective and environment
friendly building technologies, designs and materials. Adoption of a "Mission
Approach" wiH be significantly in the rural housing policy scenario in three
aspects.
1. By facilitating the articulation of specific goals .

2. Achievement of these objectives within a specific time frame and the
espousal of a holistic interdisciplinary strategy whose hallmark will be the
systematic infusion of science and technology inputs on a continuous
basis to improve all around standards of construction practices in rural
India through a mechanism of community intermediation .

3. The implementation strategy would focus on achieving these goals on pilot
project basis through cost sharing mechanisms. The aim would be to
arrive at an appropriate region, specific technology mix, ensuring
propagation of cost effect environment friendly construction designs,
materials and techniques within a specified time frame.

URBAN AND RURAL HOUSING SCENARIO IN INDIA
The estimates of housing shortage reveal that in the urban sector,
according to the NBO, on the basis of 1991 Census, there was a shortage of

8.23 million housing units in urban sector. It is hoped that the shortage would
decline to 7.57 million units in 1997 and 6.64 million units in 2001. Some other
estimate indicates that housing shortage will increase to 9.4 million units in 2001.
Available data on housing stock in urban and rural lndia (Table No.
3.1) suggest that between 1951 and 1991, population had increased about 235
per cent, however the increase in the number of households was about 206 per
cent . This indicates that the government, in spite of its several housing
programmes, was not able to achieve the demands created by the population
explosion and for that matter no Government would be able to meet such huge
demands
Table No. 3.1
Details regarding the Population, Households and Housing Stock in India (in

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Source: 1991 Census.

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Urban Housing Scenario
In the urban housing scenario there are innumerable agencies,
both public as well as private, in operation. Among the public housing Central
Governments and State Governments and between these State PWDs, State
Public undertakings, Housing Boards and Ci Improvement Trusts are involved.
In the Central Sector, Central Construction Agencies such as Central PWDs,
Central Public Undertakings, Miliiary Engineering Services, Post and Telegraphs
and Railways are involved. In addition to these massive housing schemes are
implemented by the Housing and Urban Development Corporation (HUDCO)
under the Ministry of Urban Affaim and Employment, National Cooperative
Housing Federation, etc., and public i n s t i i n s , such as LIC, GIC and Banking
sector are also contributing to their might through promotion of loans and
advances to the employees and the promotion of the Co-operative Sector on a
big scale. In the private sector the promotion of housing schemes and
construction of massive scale housing are being encouraged by the provision of
adequate finances by National Housing Bank. RBI, Commercial Banks in the
private sector, corporations like HDFC and specialized institutions set up by
Nationalized Banks, also provide adequate finances in this area.
In spite of the entire tremendous boost provided to the housing
sector in recent times, the housing shortage continues to be alamling. State
Governments have encouraged specific programmes and policies in the public
and private sectors in construction activities and the new Housing Policy

~ndicatesthe promotion of housing by way of providing adequate finances in the

housing activity. The magnitude of housing shortage in urban and rural areas is
evident from the following Table No. 3.2.
Table No. 3.2
Households, Usable Housing Stock and Housing Shortages in 1991 and

Source: The Handbook of Housing Statistics - Part 1, 1990, reproduced
in the Eighth Five Year Plan 1992-1997, Vol. II, Planning Commission,
p.361
Figures in brackets recomputed on the basis of 1991 Census /
Projected population. Table No. 3.2 shows the number of households and
estimates of housing shortage in India 1991 and 2001. As per

the NBO

estimates there was a shortage of 104 lakh houses in urban area and this
figure was projected to rise to 155 lakhs in 2001. Figures recomputed on the
basis of 1991 Census show that in 2001 urban areas will have a shocage of 143
lakhs houses, while there had a shortage of 96 lakhs houses in 1991. Thus
during the decade, housing shortage in urban areas will increase by 47 lakhs. It
may be noted that the extent of shortage has been worked out considering
certain minimum standards. It does not imply that an equivalent number of
families are entirely shelter less
The problem of urban housing is felt much more acutely with the
immigration of population from the neighbouring areas. All sorts of working
population, literate, semi-literate, etc., flow to the urban centres in search of

employment. This undue concentration in urban areas has to be tackled through
proper and effect~veurban housing policies and with the adoption of proper
programmes and policies by way of providing basic j v i c amenities and
environmental improvement programmes in semi

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urban and rural areas. The

future of the urban centres leads only in the liquidation's of housing shortage as
well as eliminating all urban slums and provision of adequate amenities and
facilities in the region.

Rural Housing Scenario
Rural housing is qualitatively different from urban housing in the
sense that the housing activity is not very much based on the cash ewnorny but
depends to a considerable extend on land rights and access to resources. In

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rural housing also there is need to provide house sites to the poor so that they
are able to erect housing units over them .
lndia is primarily rural in character where about 74 per cent of the
population lives in villages (1991 Census). Though there is no unanimous view
about the magnitude of poverty, it is fact that vast majority lives below the poverty
line. A vast majority of the poor either do not have a house or live in an
unserviceable Kutcha house. According to 1991 Census there are 341 million
households who are absolutely houseless and about 10.31 million households
live in unserviceable Kutcha house. The total housing shortage in the country is
thus about 13.72 million. To meet this housing shortage the Government of lndia
has given special attention to the programmes for the rural housing and
expectation are that by 2002 all rural houseless people will be provided shelter.

Rural housing should not be confined to mere provision of a roof
over one's head in the changing socioeconomic-politico system in India in
particular and in the developing economies of the world in general . tn fad rural
housing should contribute to the following :
1)

Substantial improvements in the q u a l i of life of the rural households and
reflect their aspirations.

2)

The total development of the personality of the rural family .

3)

Facilitate provision of all basic amenities, which have a direct impact on the
family's health vigor and effiiency.

4)

Internal and external environment of the house should have aesthetic
value and should be eco friendly from the health point of view and

5)

Women and children in particular should be able to maintain their health
well and be inspired to pursue economic and social activities.
The rural housing problem has arisen because of certain socio-

economic factors of the rural society. The growing population pressures the
emerging social requirements and the improving quality of life need newer, better
and a large number of houses for the rural teeming millions. On the basis of the
review of the progress of rural housing, it can be seen that the housing shortage
had marginally dedined in the Sixties but the trend witnessed a reversal in
Seventies.
As regards the growth rate in rural households, it was 7.83 between
1971 and 1981. The usable housing stock increased at a rate of 1.54 in rural

areas. So far as the housing shortage is concerned it is estimated to have

increased from 6.5 million dwelling units in the year 1951 to over 16 million in
1981 and 18.8 million in 1985. According to the estimate of the NBO 1991 March,
out of the total housing shortage of 310 lakhs units in the country, 206 lakhs
units are in rural areas

.

The estimated housing shortage at the beginning of

1997 -1998 was estimated at 140 lakhs dwelling units in the rural areas. To cope
with the problem as many as 20 lakhs new units are needed every year for the
increasing population. As housing encourages, economic activities, generates
employment opportunities and create solid base for healthy and hygienic living,
the magnitude of the problem and its inherent difficulties, the task of improving
the housing conditions in rural areas should be viewed as an integral part of a
programme for overall development of the villages of the country.
Housing problem is essentially the problem of the poor and low

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income groups. During the Eighth Five Year Plan a target of 7.80 million new
housing stock was set, out of which 6.29 million units were for economically
weaker sections and low-income groups.
However, since the housing demand has to be looked after by the
state administration each state is trying to achieve its target every year and in
this process some of the states appear to be establishing progress over others.
This is what is indicated in Table No. 3.3. Consolidated figures at the all lndia
level indicate that within a decade, the proportion of houseless Ihouseholds in
rural lndia have declined from 0.47 per cent to 0.28 per cent. This is an
appreciable achievement in terms of statistical data.

"Measuring Shelter Deprivation in India",
Indian Economic Review, Vol. XXX ( Z ) ,
1995.

DIMENSIONS OF THE PROBLEM
There are many reasons behind houseless ness and low qualrty of
houses in rural areas. The major factors are:1. Poverty / Low income

2. Population growth
3. Westernization IValue changes and
4. Environmental factors

The poor lack in all basic facilities. For them food is the most
important need. The rural poor pay greatest attention to satisfying hunger and

then clothing needs. Unable to bear the cost of building materials they remain
houseless or live in madequate and congested house. The poor people also lack
in other facilities such as drinking water (Table No. 3.4). They are the people who
need special assistance for house construction. They can certainly provide
labour but left to themselves they cannot arrange for construction materials. They
also need to be informed about alternative construction technologies that can be
low and effective. It is doubtless the urban- rural divide in housing will continue to
prevail for a long but the degree of differences certainly calls for intervention in
rural areas,

The shelters should be provided with basic amenities such as
access to drinking water, toilets, electrification and general sanitation. The
National Sample Survey (1974-1975) reveals that about 97 per cent of the
households have no toilets and 93 per cent of the households do not have any
bathrooms. Only 0.35 per cent of them were having water supply and 45 per cent
of the households' living room was being used as kiEehen and the remaining
households were cooking their food in the open area in front of their houses.
The data presented in Table No. 3.4 gives improved picture about
percentage of households have safe drinking water and toilets. As per this
reference, in rural lndia about 55.54 per cent of the households are now having
access to safe drinking water and this indicates that stl we have about 45 per
cent of deficiency in providing one of the most important amenities, that
ultimately lead to better health. All lndia figures show that only 9.48 per cent of
rural households are having toilet facilities.
Table No. 3.5 indicates that all lndia level in rural areas there are
30.59 per cent Pucca houses. 35.65 per cent semi Pucca houses and 33.76 per

cent Kutcha houses, which in true sense should not be called as 'a house'.
These houses are built with mud walls; roof covered with straw and lives
supported by bamboo poles. They are known for poor sanitation and in many
part of rural lndia observed that both human beings and cattle live together in the
'house'. The unhygienic cohabitation is the root cause for several diseases.
Apart from sanitary facilities, our rural houses are characterized
with poor quality of building materials, unmatched building technology and

unsuitable to village social structure. Moreover, reasons to the houses
constructed under several housing programmes are not occupied by the
beneficiaries, misused, or deserted. This is particularly true in the case of
housing colonies specified for Scheduled Caste and Schedule Tribes.
Table No. 3.5

Occasional Paper, No. 5 1994

HOUSING: ROLE OF STATE AND SOCIETY
Even in a welfare and developed society neither it is the
responsibility nor possible for the state to construct and provide housing facility to
every individual through Governmental funds and efforts. At best such a
responsibility may be confined to the poorest of the poor of the society. Even
then it is the primary responsibility of both the society and the State to ensure
and create condition under which every individual of the society could acquire
proper housing facility which include not only providing shelter but a package of
minimum amenities like drinking water, sanitation, ventilation, etc., and that too
within environmentally healthy surroundings. As a matter of fact, it should be a
partnership between the state and those who can afford on their own as well as
the community to achieve above-mentioned objectives.
This involves five functions
1. Acquisition of land.

2. Development of land.
3. Financial assistance.

4. Construction.

5. Putting limits on disparities.
The main responsibility of the state lies in acquisition of land and its
development to enable the community to construct the houses of its own. To
ensure that, under well-set norms, housing is being provided to the weaker
section with the availability of all the five objectives are integrated is the primary

duty of the State. For the remaining sections, the State should depend on and
encourage private parties, mutual savings society, builders, corporations, etc.
The National Housing Policy calls for a progressive shift from a
subsidy based housing schemes to cost sharing or cost recovery cum subsidy
scheme for rural housing. It also emphasizes a progressive shift of rural housing
strategies from target orientation to demanddriven approach. So far as the
middle and high income groups are concerned, this approach may considered
acceptable but for the low income groups, like land less labourers and persons
living below poverty line, this approach fails to appreciate the fact that the
capacity of these vulnerable sections to build a reasonably safe pucca house is

that without State subsidy is extremely limited with such an approach, the goal of
achieving "shelter to all" will continue to recede R e the horizon. It is there for
necessary that the government should change its basic approach on National
Housing Policy towards weaker sections.

RURAL HOUSING AND PLANS
Improvement in housing conditions in the villages was intrinsically a
part of community development and village planning only one programme
introduced in 1957. Village housing projects scheme was provided for assistance
to villagers. For construction or improvement of houses till the 4th Five Year
Plan. It was only during the fifth plan that provision was made to provide sites to
some of the rural landless as well as in addition to the schemes operating in
urban areas.

The scheme of allotment of houses, house sites and constructing
assistance to rural landless workers and artisans, including Scheduled Castes
and Scheduled Tribes was initiated in 1971, during the Fourth Five Year Plan as
the Central sector scheme which was later transferred to State sector in 1974.
The scheme became a part of the Minimum Needs Programme, which was taken
from the Fourth Five Year Plan. The provision of shelter, particularly for the
weaker sections has been an integral part of the Twenty Point Economic
Programme announced in 1982 and subsequently revised in 1986.

By the time or period of Sixth Five Year Plan, the housing and
Urban Development Corporation and the General Insurance Corporation had
also entered the field of rural housing and began to provide loans for construction
in rural areas. Housing construction for poor families is also being taken up under
the National Rural Employment Programme, Rural Landless Employment
Guarantee Programme, and Food for Work Programme, National Disaster Relief
and Reconstruction Programme and Special Housing Schemes for Sweepers,
Weavers, etc.
The Seventh Five Year Plan set for itself the objectives of
promotion and encouragement of Self Help Housing with the provision of house
sites to identified rural families in which cost of houses are to be within the
repayment capacity of the beneficiaries. The Seventh Five Year Plan also has
provided stimulus for private housing, adoption of low cost housing techniques,
etc.

INDIRA AWAS YOJANA

(IAY)

A new programme, viz., 'Indira Awas Yojana' for the construction of
housing units for SCI ST and free bonded labourers in rural areas, was initiated
in 1985-1986 and subsequently included in Javahar Rozgar Yojana (JRY), which
has been operating since 1989. The endeavor during the Eighth Five Year Plan
period will be towards evolving an approach to rural housing which leads to
setting up of truly integrated micro - habitats and address this scheme, especially
the disadvantaged groups including the poorest segment of SC

/ST and the

bonded labourers. At present (from 1996) IAY, a scheme to develop a
microhabitat and to ensure a base for higher level of earnings for the
beneficiaries is the single effective countrywide programme for solving the rural
housing problem.

Objectives and Achievement
The following are the objectives of the IAY scheme:
1. To develop a micro habitat and

2. To ensure a base for higher level of earning for the beneficiaries.
Under the MNP, higher priority was accorded to the scheme of
allotment of house sites and construction assistance to rural landless workers
and artisans including SC and ST'S during the seventh plan, setting apart a sum
of rupees 576.9 crore. As may as 43.2 lakhs house sites, as against the target of
29 lakhs were allotted and construction assistance provided to 22.5 lakhs
families. During 1990-91 and 1991-92, the outlay provided was rupees 129.65
crore and rupees 128.91 crore respectively. An estimated 7.74-lakh additional

Npf?eS 128.91 crore respectively. An estimated 7.74-lakh additional beneficiaries
got house sites in 1990-91 and 4.24 lakhs received construction assistance
The overall performance under IAY since 1985-86 to 1990-91 is
given in Table No. 3.6. The Table shows the year wise details of expenditure and
number of houses under the subsidized scheme.
Table No. 3.6
Expenditure and Houses Built Under

Source: Yojana, July 15, 1992, p. 27
Table No. 3.6 says that 8,57,755 houses at a cost of rupees
88,754.76 lakhs have been constructed since the inception of the programme up
to 1990-91. During 1991 -92, 203434 houses were constructed and construction
of 1,30,473 houses was under progress, the expenditure incurred was rupees
22,707.32 lakhs.
Under the IAY scheme 3.72 lakhs houses were built during 1994-95
as against the target of 2.54 lakhs at an expenditure of rupees 473.26 crore.
During 1995-96 the central allocation under the scheme was enhanced to rupees
1,000 crore as against 400 crore in 1994-95, with the objective of constructing
One million houses. By the end of 1995 about 2.88 lakhs houses were built and

the construction about 5.71 lakhs houses is under progress for which an
expenditure rupees 491.35 crore has been incurred.
The physical performance under the eight IAY scheme of house
site cum house construction assistance indicates that weaker section have been
given due priority. Details of which have been in. Table No: 3.7
Table No. 3.7

Note: - ' up to July 1995.
Source: Economic Survey, 1995-'96.
According to the Ministry of Rural Areas and Employment, the total
rural housing gap was assessed to be to the tune of 143.1 lakhs units in 1991.
This is expected to rise to a figure of 177.4 lakhs units by 2021. this assumes
that all the existing houses will remain livable at least by 2021. If the above
assumptions is excluded from the estimates India faces a housing gap of 475.3
lakhs units by 2021 out of which 243.9 lakhs units housing gaps will remain in the
rural areas (see Table No. 3.8)

Table No. 3.8

Source: Niazi and Patara (1995), Kurukshetra May June 1996- " Housing for
the Rural Poor Dr.K.D.Gaur, p. 89.

".

The Central Government under IAY scheme provides built houses
to the rural poor including SCs ISTs and free bonded labourers below the
poverty line . Following are the basic guidelines of the IAY .
A. Beneficiary selection should be done at Grama Panchayat level in an open
forum .
B. Allotment of houses should be done in the name of the female member of

the household.
C. Micro habitat approach, i.e., the provision of roads, drains, drinking water,

etc., is to be encouraged; and

D. Linking with

the Jawahar Rozgar Yojana and Integrated Rural

Development Programme in order to provide the income generation and
skills upgradation component
The layout, size and design of the house would depend on the local
conditions and no type of design is prescribed for IAY except that the plinth area
of the houses should be around 20 sq. metres. The houses are to be designed

in accordance with the desire of the beneficiaries keeping in view the climatic
conditions and the need to provide proper space, kitchen, ventilation , sanitary
facilities, smokeless choolha , etc. The beneficiaries will have complete freedom
as to the manner of construction of the house, which is their own. This will result
in economy in cost, ensure quality of construction and lead to satisfaction on the
part of beneficiaries.
The Government of India had fixed a total amount ranging from Rs.
14,000 to 15,800 per househoM earlier. Now the ceiling assistance, taking into

account the overall rise in the cost of building materials for construction, of IAY
unit is enhanced to Rs. 20,000 and Rs. 22,000 for plain and difficult areas
respectively. Broadly about 30 lakhs houses have been constructed under IAY so
far with an expenditure of Rs. 3,500 crore.
The Programme Evaluation Organization (PEO) of the Planning
Commission 1992 under took an evaluation study . The major findings of PEO on
the IAY scheme are as follows .

1. The number of household identified for allotment was almost coterminous
with the number of houses constructed/allotted .
2. Even though the guidelines prohibit involvement of contractors in the

construction of houses, their involvement was reported in 16.6per cent of
the houses constructed . Further none of the villages reported
associations of voluntary organizations in the construction of houses
through the same was provided in the guidelines .

3. Of the total houses constructed in 14 selected states (10.3 lakhs) about 50
per cent were only in three States - Tamilnadu, Uttar Pradesh and Bihar .
The average cost of construction of a house, taking all the selected
villages together, worked out to about rupees 9000 .
4. About 90 per cent of the houses were constructed in clusters in and

around the main habitation of the village .
5. The quality of 50 per cent houses constructed rated as good .
6. 86.4 per cent houses allotted under the Yojana were occupied .
7. About 84 per cent households expressed satisfaction 1 partial satisfaction

with the houses allotted to them .
The study reveals the performance of IAY to some extends and
highlights the weaknesses, which need to be addressed . Such as lower
participation of villagers in the construction activity . 50per cent of the houses
constructed are stated to be of good quality and so on .

PRADAN MANTRI GRAMODAYA YOJANA (2000-2001)
The Ministry of Rural Development recently introduced another
scheme to mitigate the rural housing problem known as Pradan Mantri
Gramodaya Yojana (Gramin Awaas), while the ministry is already implementing
schemes including the IAY, in the sphere of rural housing, considering the
magnitude of the task it has been felt imperative to supplement the efforts being
made in this direction through the introduction of a comprehensive scheme which
aims at reducing shortage of houses for Below Poverty Line (BPL) families in

rural areas and also for assisting the healthy development of the habitat in this
areas .

Features
1. Target Group- SCs ISTs, BPL categories in rural areas freed bonded

labourers and non SCs ISTs BPL categories (not more than 40 per cent
in the financial year)
2. Identification of beneficiaries - Number of houses to be constructed in the
District Rural Development agencies IZilla Parishat - Grama Sabha will
select the beneficiaries in Grama Panchayat .

3. Allotment of houses - Dwelling units will be in the name of female member
of the beneficiary household or both in the name of husband and wife .
4. Involvement of beneficiaries - Same as in the case of IAY .
5. Ceiling of contractor assistance - IAY
6. Mode of implementation -1AY

.

7. Release of funds - The funds of the scheme will be released to states in

two instalments by the Union Ministry of Finance on the recommendations
of the Union Ministry of Rural Development . The funds for the second
instalrnent will be released after Utilization Certificate IAudit Report is
received . During the year 2000 to 2001, however the second instalment
would be released wtthout insisting on completion of this procedures .
8. Monitoring and Evaluation - The State Government should prescribe

periodical report and returns through which the performance of PMGY in
the district would be closely

monitored and also obtain appropriate

reports and returns from DRDA

. These

reports and returns would be

submitted to government of India by the States .

RURAL HOUSING AND UNION BUDGET 2000-2001
"Housing for all has been identified as a priority area in the Agenda
for governance . For the coming financial year, a goal of providing 25 lakhs
dwelling units in rural areas has been fixed . Schemes for meeting the needs of
different sections of the society have been prepared .
1. Under IAY ,it is proposed to provide over 12 lakhs houses for the people

below poverty line . For this an amount of Rs.1.501 crore is being
provided in the budget.

2. For families with an annual income of below Rs.32.000 per annum,
assistance will be provided for construction of one-Iakhs houses under
Credit Cum Subsidy Scheme . An amount of Rs.92 crore is provided in the
budget for this scheme .
3. The NHB will provide refinance to banks and Housing Finance Companies
for construction of 1.5 lakhs houses under Golden Jubilee Rural Finance
Scheme
4 To further improve the availability of housing finance in rural areas
Government has decided to provide equity support of Rs.350 crore to
HUDCO during the Ninth Five Year Plan Period. Of this, Rs.200 crore
have already been released and it is proposed to release Rs.100 crore in
the next year With these funds HUDCO will be able to finance the

construction of about 9,00,000 houses in the rural areas in the coming
financial year.
5. The Co-Operative sector and voluntary agencies will support the

construction of another 1.5 lakhs houses.
RURAL HOUSING SCENARIO IN KERALA

Kerala has been in the forefront in many fields such as literacy,
health and innovations in housing, especially cost effective housing .
Table No. 3.9 indicates that about 12 per cent of the population in
lndia has no roof over their head . Among the rest who own houses, people who
own pucca house comprise only 41.61 per cent . The situation is marginally
better in Kerala compared to the national scene.
Table No. 3.9
Housing Shortage and Details regarding the Types of
(in Percentages
Houses in Kerala and India
SI.
Kerala India
Particulars
Nn

.--.

1 Estimated housing shortage
2 Household living in pucca houses
3 Households living in semi pucca houses
( 4 Households living in kutcha houses
Source: Census of lndia 1991.

10.93 12.24
55.97 41.61
19.13 30.95
24.90 27.44

However with nearly 314 of the Indian population (74.28

cent)

living villages as is evident from the Table No. 3.10 and as far as the state is
concerned the rural population amounts to 73.61 per cent.

Table No. 3.10
Distribution of Rural Population in Kerala and lndia

^.

1

I

7

I No. I
31.

Particulars

Kerala

lndia

L

1 Population
2 Rural Population
3 Percentage of Ruralf opulation
Source: Census of lndia 1991.
The projected housing shortage by 2000 A.D is about 410 lakhs

housing units of which 62.2 per cent (255lakhs) fall in rural areas due to increase
in rural population. The population in lndia at present covers more than 100crore
as against 84 crore in 1991 and nearly about 4 crore in Kerala at present, as
against 2.90 crore in 1991. Therefore the urgency of rural housing in all habitats
planning programmes in the State hardly needs to be emphasized.
The Nirrnithi Movement, which was started and developed in
Kerala, is propagating cost effective, eco

- friendly building technology in the

country has a viable approach towards solving the problem of growing housing
shortage in the country
Strategies

Despite the effort made by the government the problem of housing,
especially rural housing remains unsolved. Thus a new set of strategies has to
be followed in order to solve the problem of rural housing.

-

Providing house sites and finance There should be the provision
of house sites to the weaker section along with financial assistance consisting of
loan and subsidy components. Finance must be available for up gradation,
expansion and renewal of existing houses.

Need for a Sound Land Policy
Availability

of

land, its timely

development with

requisite

infrastructure facilittes and service is of prime importance for facilitating a
sustained growth of housing activity. In this

regard formulation and

implementation of a sound land policy is of at most importance.

Cost Reduction
Effort to effect reduction in the cost of construction by supplying
new building materials, introducing new techniques in construction and
production processes using beneficiaries' labour and reusing building materials
etc. Thus there is a need to tie up rural housing scheme with building centres as
to promote low cost housing and locally available material and appropriate
technology.
l
policy to solve the problem
There should be separate ~ r ahousing
of housing the rural poor. Before the formulation of such a policy, political parties,
communities, target groups, PRl's, co-operatives, governmental and nongovernmental organizations must be consulted. For its effective implementation
strong political will is required.
Comprehensive survey in the countryside should be conducted to
know and find out the real conditions and shortage of rural housing. This work
would be assigned to NGOS.
Sufficient loan amount free from corruption at a low rate of interest
ought to be made ava~lableto the genuine rural poor identified and selected in
the meeting of the concerned Grama Sabha.

Under the new set up the financial assistance can be routed
through the Grama Panchayat and it should ensure proper utilization of funds for
the construction and improvement of rural houses.
More emphasis has to be on quality than merely going in for
quantrty while constructing or improving the houses.
Providing basic amenities including sanitation is essential and
should be incorporated in the National Housing Policy itself; this only gives an
appropriate meaning to the 'house' in the real sense.
Co ordination of the activities all concerned agencies, organizations
and departments should be made to overcome the problems of overlapping and
duplication in view of the magnitude of the problem.
Fund for renovation of existing shelter is another important criteria
that should be included in housing finance policy.
To achieve the goal of shelter for all by 2001, there is need to
speed up the pace of progress in this direction through concerted efforts.
The guidelines issued recently relating to Centrally Sponsored
Rural Housing Scheme by the Ministry of Rural Development should be followed
in letter and spirit so as to avoid inadequate coverage, paucity of funds and poor
access to the institutional finance.
Separate Rural Housing Policy is essential to deal with the existing
problem and for this a strong political will is needed.
Regular monitoring and follow-up action are required to achieve the
objective of solving the problem of housing for the rural poor. Evaluation by the

voluntary agencies can be of great use in bringing improvements in this noble
task.
Promotion of more innovative systems of construction, which
produce quicker results in realizing the physical targets within a fixed time frame
improve the quality of housing stock by adopting affordable and appropriate
construction techniques.
Housing for the poor is a critical factor to poverty alleviation. A
decent house can solve many problems for the households. However housing is
only a necessary condition. Housing alone cannot raise the poor households
from the poverty trap . Poor household need basic infrastructure f a c i l i i along
with housing and employment opportunities to improve their living condition .
Hence in any policy for improving housing condition for the poor people can have
access to a total package to improve their quality of life where housing would
constitute an important component amongst others. Housing is just one step in
capacrty building of poor households and other step need to follow for
maintaining such capacity building, which include other basic facilities. In
addition, the other important issue in this regard is the quality of housing, its
design and affordability.
The success of rural housing problems depends on people's active
participation with a view to controlling the population. Rural unemployment and
rural poverty alleviation programme want much more attention. Low cost
technology for house building should be explored. .The beneficiaries must be
prepared to offer physical labour. They must be educated on the local availability

of material for constructron and also facilities available to get finances for rural
housing. Equally important is proper maintenance of the newly constructed
houses under the Government Schemes. Besides, the housing construction
should be declared as an industry and relaxation in various taxes should be
allowed for encouraging investment and donation towards rural housing. Last but
not the least is the fact that mere planning is not enough. It is the implementation,
which counts.