The Mission is being implemented during 2015-2022 and provides central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for:
- In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation
- Credit Linked Subsidy
- Affordable Housing in Partnership
- Subsidy for beneficiary-led individual house construction/enhancement.
Credit linked subsidy component is being implemented as a Central Sector Scheme while other three components as Centrally Sponsored Scheme (CSS).
Central Sector Schemes are implemented by Central Government, Centrally Sponsored Schemes are implemented by State Governments
EWS- households with yearly earning up to 3 lakhs.
LIG-households with yearly earning between 3 lakhs and one rupee and 6 lakhs.
For EWS, the scheme will support construction of a house with maximum carpet area of 30 square metre with basic civic infrastructure.
For LIG it will be 60 square meter.
“In-situ” Slum Redevelopment using land as Resource
Private partner for Slum Redevelopment would be selected through open bidding process. State Governments and cities would, if required, provide additional Floor Area Ratio (FAR)/Floor Space Index (FSI)/Transferable Development Rights (TDR) for making slum redevelopment projects financially viable.
Slum rehabilitation grant of Rs. 1 lakh per house, on an average, would be admissible for all houses built for eligible slum dwellers in all such projects.
States/UTs may decide whether the houses constructed will be allotted on ownership rights or on renewable, mortgageable and inheritable leasehold rights. States/UTs may impose suitable restrictions on transfer of houses constructed under this component.
A viable slum rehabilitation project would have two components i.e. “slum rehabilitation component” which provides housing along with basic civic infrastructure to eligible slum dwellers and a “free sale component” which will be available to developers for selling in the market so as to cross subsidize the project.
Credit-Linked Subsidy Scheme
The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement credit linked subsidy component as a demand side intervention. Credit linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house.
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).
Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60 square metres for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only.
Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Ministry may notify other institutions as CNA in future.
In case a borrower who has taken a housing loan and availed of interest subvention under the scheme but later on switches to another PLI for balance transfer, such beneficiary will not be eligible to claim the benefit of interest subvention again.
Affordable Housing in Partnership (AHP)
This is a supply side intervention.
To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector including industries, can plan affordable housing projects. Central Assistance at the rate of Rs.1.5 Lakh per EWS house would be available for all EWS houses in such projects
The States/UTs would decide on an upper ceiling on the sale price of EWS houses in rupees per square meter of carpet area in such projects with an objective to make them affordable and accessible to the intended beneficiaries. For that purpose, State and cities may extend other concessions such as their State subsidy, land at affordable cost, stamp duty exemption etc.
Beneficiary-led individual house construction or enhancement
The fourth component of the mission is assistance to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own to cover the beneficiaries, who are not able to take advantage of other components of the mission. Such families may avail of central assistance of Rs. 1.50 lakhs for construction of new houses or for enhancement of existing houses under the mission.
Beneficiaries in slums which are not being redeveloped can be covered under this component if beneficiaries have a Kutcha or Semi-Pucca house
Though the funds from Central Government to State Governments would be released in lump-sum including assistance for this component, State Government should release financial assistance to the beneficiaries in 3-4 instalments depending on progress of construction of the house. Beneficiary may start the construction using his own funds or any other fund and GoI assistance will be released in proportion to the construction by individual beneficiary. The last instalment of Rs. 30,000/- of GoI assistance should be released only after completion of the house.
A Beneficiary will be eligible for availing only a single benefit under any of the existing options i.e. slum redevelopment with private partner, credit linked subsidy, direct subsidy to individual beneficiary and affordable housing in partnership.
Central Govt. agencies undertaking slum development in partnership with private developers would be eligible for slum rehabilitation grant of Rs. 1 lakh per house on an average for all slums on their land being taken up for redevelopment with private partners.
Third Party Quality Monitoring Agencies (TPQMA): It is envisaged that the States/UTs would engage TPQMA to ensure quality of construction under various components of the Mission
The activities required for preparation of HFAPoA(housing for all plan of action) will be funded by Ministry in the ratio of 75:25 and in case of North Eastern and special category States in the ratio of 90:10. The unit cost/financial norms for different activities will be determined by CSMC and till then the existing norms under RAY(rajiv awas yojana) should be used.
Ministry of Railways and other land owning Central Government agencies would be requested to undertake “in-situ” redevelopment of slums existing on its land providing houses to eligible slum dwellers.