Housing is key to “inclusive growth,” providing everyone with an all-weather Dwelling Unit (DU) to ensure safety and comfort. Surrounding areas significantly impact health, education, and employment. The COVID-19 pandemic further emphasised the need for housing for all citizens. However, affordability remains a barrier to inclusive growth, especially for vulnerable sections of society.

Madhya Pradesh has made every effort to ensure that the benefits of the “Housing for All (HFA)” initiative reach all eligible beneficiaries. The state has formulated new strategies to facilitate access to these benefits.

Challenges to Safe and Affordable Housing in Madhya Pradesh

Successful implementation of any scheme requires identifying, acknowledging, and resolving challenges on the ground. In Madhya Pradesh, issues such as affordability for the Economically Weaker Section (EWS), land titles for individual housing, collection of EWS beneficiary shares, land allotment for group housing, raising awareness among beneficiaries, and facilitating access to housing schemes were key challenges addressed by the government, paving the way for successful implementation and inclusive growth in the state.

Initiatives of Madhya Pradesh under “Housing for All”

The cornerstone of Madhya Pradesh’s approach is affordability for all and the development of inclusive communities. The success of the “Housing for All” initiative in the state is primarily attributed to several key initiatives:

1. Increasing Affordability for the Economically Weaker Section
Madhya Pradesh implemented the “Housing for All” Mission to provide affordable housing to the Economically Weaker Section (EWS) of society. In addition to the generous central assistance, the Government of Madhya Pradesh provided a subsidy of Rs. 1.50 lakh per DU under the Affordable Housing in Partnership (AHP) scheme and Rs. 1.00 lakh per DU under the Beneficiary Led Construction (BLC) scheme.

BLC is the most popular vertical in small and medium towns of Madhya Pradesh. The estimated cost of constructing a 30 Sq. Mt. house under BLC is around Rs. 3.85 lakh. EWS beneficiaries can conveniently construct their houses with a total subsidy of Rs. 2.50 lakh, contributing the balance amount through labour and personal savings.

In Madhya Pradesh, EWS houses under AHP cost between Rs. 5.50 lakh and 8.50 lakh. However, the contribution for slum dwellers has been capped at Rs. 2.00 lakh, with the remaining amount sourced from government subsidies and cross-subsidisation.

(i) Additional Subsidy to EWS Beneficiaries through CrossSubsidisation

The state adopted a cross-subsidy model to provide ‘Best in Class’ construction quality and maintain affordability for EWS. LIG, MIG, and commercial units are constructed alongside EWS units, and profits from the sale of LIG, MIG, and commercial units are used to cross-subsidize the cost of DUs for the Economically Weaker Section. In this model, beneficiaries of all segments (EWS/LIG/MIG) are housed in a single housing society, making the project financially viable and ensuring inclusive communities.

(ii) Additional Subsidy of Rs. 1 Lakh to EWS Construction Laborers

An additional grant of Rs. 1 lakh per DU has been provided to Building & Other Construction Workers under AHP projects. Funds from the Labour Department in the form of ‘Labour Cess’ were utilised for this purpose, reducing the financial burden on beneficiaries.

2. Free Land on Ownership Basis to Further Reduce Financial Burden

To further alleviate the financial burden on beneficiaries, the GoMP has allotted land in the middle of cities to Urban Local Bodies (ULBs) for constructing projects under HFA at zero premium, which otherwise would have added an additional financial burden of at least Rs. 1-2 lakh per DU. Moreover, this land is allotted to ULBs on an ownership basis, allowing them to transfer DUs to beneficiaries with full title instead of a lease, aiding in the effective implementation of the crosssubsidization model. Prospective LIG/MIG/Commercial Units buyers are more inclined to purchase properties with full title.

3. Land Titles (Patta) to Landless Beneficiaries of BLC

The Government of Madhya Pradesh is committed to providing housing to all, including landless families in urban areas. To extend the benefits of PMAY(U), Pattas (Land Titles) are provided as per the “Madhya Pradesh Nagariya Kshetro Ke Bhoomihin Vyakti (Pattadhriti Adhikaron Ka Pradan Kiya Jana) Adhiniyam, 1984.” Over 45,000 Pattas have been distributed so far. In many ULBs, parcels of government land have been identified for allotment to beneficiaries, with ULBs providing developed plots with basic infrastructure like roads, drains, streetlights, etc.

4. Facilitating Bank Loans to Beneficiaries through Tripartite Agreements

Madhya Pradesh recognised that EWS beneficiaries face challenges in obtaining home loans from Banks/HFCs due to factors such as inadequate proof of income, non-filing of ITR, inadequate guarantees, and low CIBIL scores. To address this, the state designed a Model Tripartite Agreement to be executed among Banks/HFCs, ULBs, and beneficiaries, with the ULB acting as a ‘Guarantor’ for home loans. This measure allows EWS beneficiaries to obtain home loans conveniently, and it has improved the financial accountability of beneficiaries, as almost all who have availed of home loans through the tripartite agreement are paying EMIs on schedule.

5. Convergence of PMAY (U) with Other Schemes

Convergence has been the guiding principle for inclusive and sustainable development in Madhya Pradesh. It was mandated to develop infrastructure in convergence with funds from Urban Local Bodies (ULBs), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Mukhyamantri Adhosanrachna Vikas Yojana, Ashray Nidhi, Vishesh Nidhi, etc. This approach ensured quality infrastructure covering water supply, sewerage, public transport, roads, etc., in habitations and reduced the infrastructure cost burden on beneficiaries.

6. Promotion of Innovative Construction Technologies

State-of-the-art and sustainable urbanisation is only possible with leveraging technologies. Madhya Pradesh is proactively promoting innovative construction technologies. The Light House Project (LHP) at Indore, inaugurated by the Hon’ble Prime Minister on 5th October 2023, provided a platform for professionals, academicians, construction agencies, and students to learn innovative construction techniques. Similarly, a Demonstration Housing Project (DHP) using Insulated Concrete Form (ICF) Technology was completed in 9 months at Sundarlal Patwa National Institute of Urban Management, Bhopal.

Also Read | Madhya Pradesh’s Booming Tech and Investment Landscape

Impact of the “Housing for All”

Mission Thanks to these strategies and dedicated efforts by the team in Madhya Pradesh, 8 lakh houses have been completed out of the 9.49 lakh houses sanctioned. The Government of India has recognised Madhya Pradesh’s efforts, awarding it the title of 2nd Best Performing State for overall mission implementation on 19th Oct 2022, along with six other particular categories and ULB-level awards.

Views expressed by: Dr. Parikshit Sanjayrao Zade, IAS,  Additional Commissioner, Urban Development and Housing Department, Government of Madhya Pradesh

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!