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The Government of Jharkhand has recognised that with rapid urbanisation, the growth of slum settlements is inevitable unless appropriate measures are taken for provision of basic infrastructure and housing facilities. Accordingly, the State has taken up affordable housing, particularly to the urban poor who live in informal settlements, on top priority, writes Mrityunjay Kumar Baranwal, Director, Urban Development and Housing Department, Government of Jharkhand.

Housing, clothing and food are the three basic necessities for human survival. With the evolution of eras the needs have modified, but not changed to the core. With the growing urbanisation, the challenge lies in creating affordable shelters for all. With an aim to provide housing for all, the Pradhan Mantri Awas Yojana – Housing for All (PMAY). Jharkhand, which is on its way towards urban development in presence of Smart Cities, is mandated to provide housing facilities to all, including those belonging to the Economically Weaker Section (EWS).

Moreover, the Jharkhand Government has prioritised to provide affordable housing solutions for the people belonging to the lower socio-economic strata, residing in the urban areas, not only to provide the basic infrastructure and housing facilities, but also to eradicate growing unauthorised colonies or slum settlements.

Government of Jharkhand has recognised that with growing urbanisation, the growth of slum settlements is inevitable unless appropriate measures are taken for provision of basic infrastructure and housing facilities. Accordingly, the Government of Jharkhand has taken up affordable housing particularly to the urban poor who live in informal settlements on top priority.

The transformation in housing sector by providing houses to the urban poor makes a significant change in the self-respect of a poor people.

Pradhan Mantri Awas Yojana (PMAY) Implementation in Jharkhand

The Jharkhand Affordable Housing Policy was launched in the year 2016. Policies regarding the implementation of Affordable Housing Projects under PMAY(Urban) and In- Situ Slum Rehabilitation were formulated and were notified by the state. Projects regarding construction of 1,80,079 houses were sanctioned. At present, a total 96,431 houses are grounded, out of which construction of 49,550 houses have been completed. As many as 46,881 houses are under construction.

Work Order for construction of 8,742 houses in Ranchi, Dhanbad, Jamshedpur, Deoghar, Adityapur, Saraikela etc. have been awarded. Tender for as many as 17,252 houses is in progress.

How Jharkhand is creating a mark in offering housing for all

Jharkhand is the first state to introduce and conduct Social Audit. The state is also the pioneer in launching PMAY passbook, which has been replicated by other states. Every year, ‘Grih Pravesh Diwas’ is celebrated for completion of construction of 30,000 individual houses.

Involving Stakeholders and Public Private Partnership

PMAY(U) has set the ground for large scale construction of houses in a stipulated timeframe, where involvement of private players, investors, developers, financial institutions plays a major role.

“The Jharkhand Affordable Housing Policy was launched in the year 2016. Policies regarding the implementation of Affordable Housing Projects under PMAY(Urban) and In- Situ Slum Rehabilitation were formulated and were notified by the state”.

With an aim to create affordable housing for citizens belonging to every socio-economic section, Jharkhand government is creating opportunity for the developers and investors from the private sector.

The engagement of developers will be based on the Design & Build mode where in the developers will be vested with the responsibility of designing and construction of project facilities following NBC Code or Jharkhand Building By–Laws 2016 as the case may be. The proposed construction shall have carpet area of 27 -30 Square metre for each dwelling unit.

Creating Affordable Housing for All

Government of Jharkhand will contribute Rs 1 lakh per dwelling unit (DU) of EWS house along additionally to the Central Assistance scheme. According to the Central Assistance scheme, Rs 1.5 lakh per EWS would be offered.

The beneficiary’s contribution will be Rs 4.5 lakh or the residual cost of dwelling unit, whichever is higher. The estimated cost of the Affordable Housing Programme (AHP) is Rs 4,000 crore. Government of India and Government of Jharkhand will assist the beneficiaries with Rs. One Lakh each. The beneficiary’s contribution will be Rs. 1.5 lakh.

Role of Developers in the Affordable Housing Project

Developers may propose affordable housing project under AHP on private land parcels. Developers keen to work on this project will have to submit their proposal(s) to the respective Urban Local Bodies (ULBs). The approval of the proposals will depend in the scrutiny in lines with the applicable guidelines and ULB’s recommendation.

While the developers may build different categories of houses within a project, which consists of at least 250 houses, the state Government mandates them to build at least 35 percent of the houses for EWS category.

The developers will have to allot the dwelling units as per the set eligibility criteria for the beneficiaries under this scheme. A central assistance of Rs 1.5 lakh per dwelling unit will be extended to the, on giving possession of the dwelling units to the beneficiaries.

In-Situ Slum Redevelopment

In- Situ Slum Redevelopment (ISSR) is proposed to implement with a concept ‘Land as a Resource’ with private sector participation for providing houses to the eligible slum dwellers. The Jharkhand government is readying the supply for housing stock of approximately 53,000 households in the line with demand assessment.

So far around 200 acres of land has been identified across 24 locations within the planning area as per the notified City Master Plan of the respective ULBs. As per the early broad cost projections, the estimated project cost would be Rs 4,000 Crore.

“Jharkhand is the first state to introduce and conduct Social Audit. The state is also the pioneer in launching PMAY passbook, which has been replicated by other states. Every year, ‘Grih Pravesh Diwas’ is celebrated for completion of construction of 30,000 individual houses”.

According to the scheme, the private sector players will be offered 45 percent of the land on freehold in lieu of the development as per the pre-defined specification standards in line with central or state guidelines. The scheme also mandates the developer to ensure that the progress of work shall always be more on Slum Redevelopment share of land as compared to the Developer’s share of land.

Offering Financial Assistance for facilitating Affordable Housing to EWS

The State government has institutionalised Jharkhand Affordable Housing Development Fund. Financing opportunities of approximately Rs 4,116 crore as housing loan under ISSR and AHP are facilitated. The state also provides facility to convert existing housing loan under Credit Link Subsidy Scheme. Last but not the least, the financial assistance mechanism of the state for the AHP facilitates hassle free housing loan to EWS beneficiaries.

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