Urban India Challenges

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By: aadesign1 (57 month(s) ago)

Thanx for the detailed overview.

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1 Challenges Facing Urban India: Housing & Sanitation For the Urban Poor SecretaryMinistry of Housing & Urban Poverty AlleviationGovernment of India Ph: + 91 9818112427 email: secy-muepa@nic.in/hs.anand@yahoo.com by Dr. Harjit S. Anand

Structure of Presentation : 

2 Structure of Presentation The Urban Setting National Urban Housing & Habitat Policy, 2007 Jawaharlal Nehru National Urban Renewal Mission Interest Subsidy Scheme for the Urban Poor Integrated Low Cost Sanitation Scheme Urban City-wide Infrastructure Urban Livelihoods The Right to Shelter: converting dream into reality

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3 “Space and light and orderThese are the things that men needJust as much as they needBread or a place to sleep.” Le Corbusier

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4 The Urban Setting

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5 Urbanisation and Development “Urban” in India is defined as a human settlement with a minimum population of 5000 persons, with 75% of the male working population engaged in non-agricultural activities and a population density of at least 400 persons per sq. km. Further, all statutory towns having a Municipal Corporation, Municipal Council or Nagar Panchayat as well as a Cantonment Board are classified as “URBAN” The Urban Setting

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6 Urbanisation and Development 99% of the housing shortage of 24.7 million at the end of the 10th Plan pertains to the Economically Weaker Sections (EWS) and Low Income Groups (LIG) sectors. National Sample Survey Organisation (NSSO) 61st Round reports that the number of urban poor has risen by 4.4 million persons, between 1993-94 to 2004-05. From 12 in 1981 with 26.8% share of the total urban population, the number of million plus cities has increased to 35 in 2001 with 37% share of the total urban population. The Urban Setting

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7 Rural to Urban shift of labour It is important to highlight the fact that the informal sector in urban areas is growing exponentially. In the decade 1991-2001, workers classified as “marginal workers” registered an increase of 360% as compared to an increase of only 23% for workers classified as “main workers.” As a consequence, the ratio of marginal workers to total workers increased from 2.2% in 1991 to 7.9% in 2001 The proportion of female workers to total workers rose from 14.3% in 1991 to 16% in 2001 The Urban Setting

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8 Urban India: Statistical Profile 2001 Urban Population 286 Million Urban Population % 28% No of Urban Agglomerations/Towns 5,161 No of Metropolitan Cities 35 Metropolitan Population Share 38% Share of Cities with Population > 50000 74% Urban Contribution to GDP 60% The Urban Setting

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9 Urban India: Slums & Poverty Scenario Slum Population 1991 : 42 Million 2001 : 62 Million Growth in Urban Population 1991-2001 : 58 Million Growth in Slum Population 1991-2001 : 20 Million Poverty Scenario: Urban BPL Population 1973-1974 : 60 Million 1999-2000 : 67 Million The Urban Setting

Share of Slum Population in City Population: Select Cities : 

10 Share of Slum Population in City Population: Select Cities Mumbai 54% Faridabad 46% Aligarh 45% Meerut 44% Warangal 43% Amaravati 43% Raipur 37% Nagpur 36% Guntur 33% Kolkata 32% The Urban Setting

Urban India: Growth in Population & Slum Population : 

11 Urban India: Growth in Population & Slum Population Decadal Total Population Growth 25% Decadal Urban Population Growth 40% Decadal Metro-Population Growth 79% Decadal Slum Population Growth 70% The Urban Setting

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12 Poverty and Housing needs According to the Census 2001, 61.82 million persons or 23.1% of the urban population resides in slums. During the 11th Plan, the Group estimated that the total housing requirement (including backlog) will be to the tune of 26.53 million units for 75.01 million households. One fourth of the country’s total urban population, numbering 80.7 million persons is below the poverty line. The Urban Setting

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13 Access to Housing 2001 Housing Scenario in India The Urban Setting

Total Housing Shortage : 

14 Total Housing Shortage The Urban Setting

Category-wise Housing Shortage : 

15 Category-wise Housing Shortage Estimated Urban Housing Unit Shortage as on 1.4.2007: More than 99% shortage is for EWS/LIG segments Total : 24.71 m 100.00% EWS : 21.78 m 88.14% LIG : 2.89 m 11.69% MIG&HIG: 0.04 m 0.16% The Urban Setting

Financial Investment Required for Overcoming Shortage : 

16 Financial Investment Required for Overcoming Shortage The Urban Setting

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17 The Urban Setting * * Source: Technical Group on Estimation of Urban Housing Shortage, NBO, MoHUPA The figure in Parenthesis is the total housing stock (in Million) Quality of Housing Stock

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18 The Urban Setting

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19 Growth of Slums The Urban Setting Slum Population as %age of total urban population is given in parenthesis

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20 Growth of the Urban Informal Sector It is important to highlight the fact that the informal sector in urban areas is growing exponentially. In the decade 1991-2001, workers classified as “marginal workers” registered an increase of 360% as compared to an increase of only 23% for workers classified as “main workers.” As a consequence, the ratio of marginal workers to total workers increased from 2.2% in 1991 to 7.9% in 2001. The proportion of female workers to total workers rose from 14.3% in 1991 to 16% in 2001 The Urban Setting

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21 Balanced Regional Development The way to bring about a symbiotic development between rural and urban areas is by adopting “a Regional Planning approach.” In view of the fact that 50% of India’s population is forecasted to be living in urban areas by 2041, it is necessary to develop new integrated townships. Development of sustainable habitat is closely related to the adoption of ‘the Regional Planning approach’ while preparing Master Plans of towns/ cities, District Plans and Regional/Sub-Regional Plans. The new Habitat Policy reaffirms the importance of small and medium urban agglomerates/towns which have potential for future urban growth. The Urban Setting

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22 National Urban Housing & Habitat Policy 2007

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23 Affordable Housing for All Spotlight on EWS Housing for promoting social inclusion Special focus on SC,ST,BC, Minorities & empowerment of women within ambit of urban poor VISION National Urban Housing & Habitat Policy 2007

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24 The Cooperative Sector The Labour Housing sector The Employee Welfare Housing Sector The Employer Housing Sector ,and The Private Sector Public partnerships with National Urban Housing & Habitat Policy 2007

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25 Focus Areas The new policy considers the 74th Amendment Act in terms of preparation of District Plans by District Planning Committees (DPCs) as a vital determinant of systematic urban planning. National Urban Housing & Habitat Policy 2007

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26 Increase Supply of Land Facilitating accessibility to serviced land and housing with focus on economically weaker sections and low income group categories. Suitable restructuring for enabling both institutions at the State and Centre levels as well as the private sector for increasing supply of land. National Urban Housing & Habitat Policy, 2007

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27 “How wrong it is for a women to expect the man to build the world she wants rather than to create it herself” Anais Nin

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28 Addressing the special needs of women headed households, single women, working women and women in difficult circumstances in relation to housing serviced by basic amenities. Special Provision for Women National Urban Housing & Habitat Policy 2007

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29 Public-Private Partnerships Forging strong partnerships between public, private and cooperative sectors for accelerated growth in the Housing Sector and sustainable development of habitat National Urban Housing & Habitat Policy 2007

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30 Healthy Environment Developing cities/towns in a manner which promotes a healthy environment, encouraging use of renewable energy resources and ensuring effective solid waste management in collaboration with persons involved in recycling activities. Protecting our cultural heritage and architecture as well as promoting traditional skills with suitable adaptation to modern technologies. National Urban Housing & Habitat Policy 2007

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31 Integrated Townships, Urban Extensions & SEZs Develop Greenfield towns & integrated urban housing extensions of existing towns with complementary infrastructure or Special Economic Zones (SEZs) with both FDI and national investments in housing and infrastructure. Ensure that such fully integrated housing projects are well connected by MRTS corridors. National Urban Housing & Habitat Policy 2007

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32 Research & Development Organisations Undertake research to respond to different climatic conditions with a focus on transition from conventional to innovative, cost effective and environment friendly technologies Intensify efforts for transfer of innovative technologies and materials from lab to field National Urban Housing & Habitat Policy, 2007

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33 Action Plan The Central Government will encourage and support the States to prepare a State Urban Housing and Habitat Policy and also a State Urban Housing & Habitat Action Plan In order to augment sustainable and affordable housing stock along with related infrastructure like water, drainage, sanitation, sewerage, solid waste management, electricity and transportation, the Action Plans of States/UTs should focus on accelerated flow of funds for housing (including various cost-effective slum-related options) and infrastructure National Urban Housing & Habitat Policy 2007

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34 Integrated package of Housing & Basic Services Affordable housing with security of tenure Basic physical services Basic social services through convergence & Linkage with urban poverty alleviation. JNNURM vision for the urban poor: BSUP & IHSDP The JNNURM Initiative

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35 JnNURM at a Glance The JNNURM Initiative

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36 Minimum 25 Sq mtrs Carpet area under BSUP and Covered area under IHSDP, Minimum provision of Two rooms, Kitchenette, Toilet & Bath, Vector-free housing layout, Provision of Basic Physical Amenities: Water Supply,Drainage, sanitation, Roads/Streets, street Lighting, Solid Waste management & appropriate Green Spaces, Provision of Social Infrastructure: Community Centre, Livelihood Centre & Informal Sector Market, and Eco friendly Habitat which promotes Social Cohesiveness. Eco friendly design & layouts for the Urban Poor Inclusive Planning & Architecture The JNNURM Initiative

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37 Mayors’ Forum on eradication of Urban Poverty & City Mangers’ Forum on Urban Poverty Alleviation & Livelihood Development launched in March 2007. Researchers’ Colloquium on Urban Poverty launched in March 2007 for promoting knowledge management & e-networking amongst eminent researchers. Research initiated on Key Themes concerning the Urban Poor : Land Tenure, Affordable Housing, Water, Sanitation, Education, Health, Social Security, Micro-finance, Livelihoods, Skill Development & Inclusive Planning for Housing the Poor. Advocacy and Networking with Stakeholders The JNNURM Initiative

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38 National Programme on Capacity Building for Urban Poverty Alleviation launched in March 2007. Network of 8 National Resource Centres on Urban Poverty, Slums & Housing established: YASHADA, Pune; AIILSG, Mumbai; CGG, Hyderabad; NIUA, New Delhi; HSMI, New Delhi; EDI, Ahmedabad; ASCI, Hyderabad; NBO, New Delhi. Linkage of NRCs with State & Regional Training Centres. Advocacy and Networking with Stakeholders The JNNURM Initiative

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39 The Ministry is introducing a new scheme for providing interest subsidy of 5% on housing loans by banks/HFCs & MFIs for EWS/LIG segments of society for construction of houses It is aimed at providing 400,000 Dwelling Units during the 11th Five Year Plan. The total interest subsidy requirements for the construction of 400,000 houses for EWS/LIG segments financed during the next 4 years (2008-12) is projected at Rs. 1100 crores. Interest Subsidy Scheme for Urban Poor

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40 Total cost of a Low Cost Sanitation Unit with superstructure is pegged at Rs.10,000 in plains & Rs.12500 in hilly or difficult terrains. Subsidy by Central Govt. is 75%; Subsidy by State Govt. is 15%; & Beneficiary contribution is 10%. Strong involvement of NGOs. Adoption of a Citywide Approach. Innovative Sanitation Systems. Allocation of Rs.600 crores for urban areas during the 11th Plan Period. Integrated Low Cost Sanitation Integrated Low Cost Sanitation

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41 Urban Infrastructure Challenges

Mandatory (ULB Level) : 

42 Mandatory (ULB Level) Adoption of double entry system of accounting Introduction of e-Governance Reform of property tax with GIS-based Tax Mapping Internal earmarking for basic services to the urban poor Provision of basic services to urban poor Mandatory (State Level) Implementation of decentralisation measures as envisaged in Constitution 74th Amendment Act Rationalisation of Stamp duty to bring it down to no more than 5% within next 7 years Enactment of Community Participation Law to institutionalise citizen participation & Area Sabha Assigning or associating elected ULBs with “city planning function” – Accountability platforms for parastatals Mandatory Urban Reforms Urban Infrastructure Challenges

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43 Revision of bye-laws to streamline the approval process for construction Simplification of legal and procedural frameworks Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25% of developed land for EWS and LIG category Computerised process of registration of land and property Revision of bye-laws to make water conservation measures in all building Bye- laws for reuse of recycled water Administrative reforms Structural reforms Encouraging private-public partnership Optional Urban Reforms (State, ULB Level & Parastatal Agencies) Urban Infrastructure Challenges

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44 Spatial identification of shortages. City Development Plan : Prioritising investments in low-income areas Urban Infrastructure and Governance (UIG) Urban Infrastructure Development Scheme for Small and Medium Towns(UIDSSMT) JNNURM Initiative Urban Infrastructure Challenges

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45 Progress as on 31st March 08 JNNURM Initiative Urban Infrastructure Challenges

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46 Maharashtra has repealed Urban Land Ceiling and Regulation Act, Andhra Pradesh also. West Bengal has committed to repeal ULCRA next year, 26 States have repealed ULCRA till date. Assam, Tripura, Gujarat & Maharashtra have enacted Public disclosure Law, whereas Tamil Nadu and Chandigarh are in progress Assam & Gujarat have enacted Community Participation Law States of Sikkim, Goa, Puducherry, Jharkhand and Tripura have already rationalised Stamp Duty to 5 % or below. Progress of Reforms 33 Cities have undertaken Internal Earmarking of Funds for Services to Urban Poor Improved Financial Management -14 cities have accomplished Double Entry Accrual Based Accounting System e-Governance reform accomplished in 7 cities (Hyderabad, Vishakapatnam, Bhopal, Coimbatore, Madurai, Asansol, Kolkata) 10 Cities have improved property tax coverage to above 85 %. State level ULB level Urban Infrastructure Challenges

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47 Urban Livelihoods “What is the city but the people.” William Shakespeare

What is the Informal Sector?The ParableA story of two baskets : 

48 What is the Informal Sector?The ParableA story of two baskets Urban Livelihoods

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49 The Trinity Segment of the workforce working in the informal sector Percentage of population living in slums & Percentage of population below the poverty line. Urban Livelihoods

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50 Poverty Alleviation Programmes The Historical Perspective The UNICEF led UBS Experiment Nehru Rozgar Yojana The scheme of Urban Basic Services for the Poor (UBSP) & Swarna Jayanti Shehri Rozgar Yojana (SJSRY). Urban Livelihoods

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51 Versatility Instruments Promotion of micro enterprises with capacity building inputs Promotion of wage employment through creation of socially and economically useful public assets Creation of jobs through housing and shelter upgradation Skills training and promotion of employability in the private sector & Entrepreneurship development programmes. Urban Livelihoods

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52 Supply-side Dynamics Provision of skills training Provision of entrepreneurship training Provision of common facilities Provision of quality marking facilities Joint purchase of raw materials Researched design inputs & Setting up of micro business Estates – production, services & business. Urban Livelihoods

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53 Demand-side Dynamics Conduct Market Surveys Discovery of niche segments Matching entrepreneurs to niche segments Unique selling propositions (USPs) Marketing Assistance & Developing Competitive Marketing Mix. Urban Livelihoods

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54 Employment Generation and Employability Launching little entrepreneurial boats SEAS : Small Enterprise Advisory Services Advantages of Localisation Advantages of Solidarity : scale of production Matching demand for employment with supply of skilled workers, supervisors and managers Skill Development Mission & Non profit company for promotion of Skill Development : Private Sector Employment. Urban Livelihoods

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55 The Right to Shelter - Converting dream into reality……

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56 Social Housing The two lowest monthly per capita expenditure classes Saving capacity of EWS & LIG The subsidy gap & Converting need to demand. The Right to Shelter - Converting dream into reality……

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57 Fiscal incentives Income Tax benefit for investment in housing; Section 80 IA of IT Act exempts 100% income from infrastructure projects from income tax for ten consecutive years. Integrated Township Development to be brought within definition of Infrastructure & Rental Housing : 30% deduction from housing income u/s 24(a) is available for repair, maintenance, collection and insurance etc. The Right to Shelter - Converting dream into reality……

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58 U/s 36(1)(viii) of IT Act: 20% of profit derived from business of providing long term housing finance is deducted from income provided it is carried to special reserve, U/s 36(1)(viia) of IT Act : Deduction for bad and doubtful debts equivalent to 10% of the doubtful and loss assets is available to banks. Extend provision to Housing Finance Companies & Depreciation on Employee Housing : Higher rate of depreciation (say 30%) should be introduced on residential accommodation if built by the employer for its employees. Fiscal incentives The Right to Shelter - Converting dream into reality……

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59 Amendment of Rent Control Acts, Promulgation of Service Apartment Acts, Flexibility in relation to selling a floor of a residential unit, Rest houses in residential areas & Paying guest accommodation. Increasing Supply of Rental Housing The Right to Shelter - Converting dream into reality……

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60 Innovative banking and financial instruments Permission to HUDCO and National Housing Bank to float Housing Bonds with the benefit of 54 EC exemption from Capital Gains, National Housing Bank to act as a refinance institution, 75% of the bond money to be utilized for EWS and LIG housing & Permission to individuals for purchasing housing bonds with redemption in the form of EWS, LIG and HIG housing Housing Bonds – the Sudarshan Chakra The Right to Shelter - Converting dream into reality……

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61 Regulation of Real Estate Development Safeguarding the rights of an Allottee vis-à-vis cost escalation, Safeguarding the rights of an Allottee in relation to time over-runs, Safeguarding the Allottee in relation to provision of green spaces and social infrastructure & Safeguarding the Allottee in relation to a healthy and clean environment combined with basic sports facilities. The Right to Shelter - Converting dream into reality……

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62 Need for an Urban Regulator Model guidelines from the Central Government, States to pass legislation for setting up a State Urban Regulator, Regulator to mediate disputes between ULBs and Parastatals & Regulator to ensure Provision of land at institutional rates for “no profit no loss” housing. The Right to Shelter - Converting dream into reality……

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63 City Development Plan, Master Plan, Spatial Dimension of Financial Investments, Role of Central ,State and Local Governments & Domestic Investment & FDI Planning & Investments The Right to Shelter - Converting dream into reality……

Caring for the Urban Poor : 

64 Caring for the Urban Poor A Tale of Two Cities, The Antyodaya Approach, BSUP Fund of each city & Special Development Plan for the Urban Poor of each city The Right to Shelter - Converting dream into reality……

“ I will give you a Talisman. Whenever you are in doubt or when the self becomes too much with you, apply the following test:Recall the face of the poorest and weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him. Will he gain anything by it? Will it restore him to a control over his own life and destiny? In other word, will it lead to Swaraj for hungry and spiritually starving millions?Then you will find your doubts and yourself melting away.” : 

65 “ I will give you a Talisman. Whenever you are in doubt or when the self becomes too much with you, apply the following test:Recall the face of the poorest and weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him. Will he gain anything by it? Will it restore him to a control over his own life and destiny? In other word, will it lead to Swaraj for hungry and spiritually starving millions?Then you will find your doubts and yourself melting away.” ~ Mahatma Gandhi