Events & Issues

New Delhi, 18 July 2011

Slum Free India

PLAN, DON’T RUSH BULLDOZER

By Dhurjati Mukherjee

Concrete steps to make India slum free are finally underway. Last month, the Union Cabinet approved the Rajiv Awas Yojana (RAY), under which low-cost houses will be constructed to benefit 35 million slum dwellers in 350 cities and towns during the 12^th Plan period. The Centre will foot 50 per cent of the bill for slum re-development, which slum dwellers having property rights can avail. Accordingly, the Finance Ministry has allocated Rs 800 crores for RAY for the current financial year (2011-12).

However, New Delhi’s aid would be conditional as per reforms undertaken by States. The scheme envisages extending financial support under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to the States that “are willing to assign property rights” to people living in slums. This will encourage States to increase the supply of land and construct 10 lakh houses in the first phase by giving a grant of Rs 50,000 for every dwelling unit.

To get Central grant, the projects should have houses ranging from 300 sq. ft. to 1200 sq. ft. plinth area built at affordable rates on land provided by the State Government. A minimum of 25 per cent houses of 300 sq. ft. will be compulsory for the economically weaker sections (EWS) in each project. Further, to minimize the cost of construction, the scheme aims to come out with layouts which mix EWS/LIG, MIG/HIG and commercial set-ups and cross subsidizing plans.   

The Yojana will ensure that the urban poor can access loans under interest subsidy scheme which provides 5 per cent subsidy on loans up to Rs one lakh. Moreover, States have been asked to cut stamp duty to a maximum 2 per cent for LIG and 0 per cent for EWS category.    

According to an expert committee of the Planning Commission for better implementation of RAY, over 93 million people will be living in slums in 2011, an increase of around 23 per cent from the 2001 figure of 52.4 million. Maharashtra tops the chart where around 18.15 million will be living in slums, followed by Uttar Pradesh (10.87 million), Tamil Nadu (8.64 million), West Bengal (8.56 million) and Andhra Pradesh (8.16 million).

Among the cities, Mumbai will have 8.68 million people living in slums next year followed by Delhi with 3.16 million and Kolkata 1.78 million. The projected slum population will cross 100 million by 2017 from the estimated 75.2 million in 2001. Such a trend --increase in urbanization was on expected lines as people have been flocking to cities in search of jobs and better livelihood.

Today, India has around 49,000 slums of which 24 per cent is located along nullahs and drains and around 12 per cent along railway tracks, as per last year’s report of National Sample Service Organization (NSSO) ‘Some Characteristics of Urban Slums 2008-09’. Not surprisingly 57 per cent of slums came up on public land, owned mostly by local bodies and State Governments.

No doubt the recent steps taken by the Government are welcome. But the dimension of the problem is so acute that development authorities have been unsuccessful to cope up with the challenge affecting the EWS and the LIG sections, constituting around 50 per cent of the population. According to the National Housing & Habitat Policy (2007), the total shortage in the country was around 24.71 million dwelling units of which 21.78 million units (around 88 per cent) constitute the shortage for the EWS and 2.89 million units (around 11.7 per cent) shortage for the LIG.

At the beginning of the 11^th Five Year Plan, the total investment required for meeting the housing shortage was estimated at Rs 147,195 crores and during the Plan period it went up to Rs 214,123 crores, taking the requirement at a massive Rs 361,318 crores. Therefore, whether the proposed plan of providing ‘Housing for All’ by 2015 would be possible remains a big question. Sadly, schemes such as JNNURM and the 2 Million Housing Programme (2 MHP), which have reportedly focused on EWS and the LIG sections have not met the desired targets till date.    

Apart from additional housing requirement, there is also the acute problem of shelter upgradation. In Mumbai 55 per cent of the people live in slums on 35 km. of land while 25 per cent reside in dilapidated buildings. As such, around 80 per cent of the population needs to be re-housed which may take about a decade. The problem in Delhi and Chennai is equally critical.

Regrettably, five per cent subsidy on market rate of interest annually on housing loan for 5 years to the EWS and LIG has made little headway. The proposal was evolved after the Housing Ministry estimated that about 26 million houses would be required during the 11^th Plan period. Besides, with the Centre’s resolve to make cities cleaner and beautiful, massive eviction drives have been undertaken during the past five years of slum settlements on Government land. Estimates from Hazards Centre, Delhi reveal that over one lakh families i.e. about four lakh people were forcibly evicted from their homes in the city in 2001-2006 without any resettlement provision.

Sadly, JNNURM funds or other resources have not helped provide alternative rehabilitation (with necessary civic amenities) for the poor, who are without both shelter and jobs. Plus, there is harsh criticism that a major portion of the JNNURM funds are being allotted to the 15 per cent minority upper class, whereas 50-60 per cent of the lower class is languishing.      

Given the above, many are now optimistic that the present scheme may finally focus on the aam aadmi. Experts say the projects could achieve economies of scale by having 2000 to 3000 houses at a time in a single location, using alternative and local materials such as machine-made bricks, particle boards and PVC material, environment-friendly building material, and adopting economical construction systems.  

Therefore, a big push must be given to boost social housing that is affordable, specially to the urban poor, as per the latest National Housing & Habitat Policy. However, problems remain. For example, in Dharavi, Mumbai the slum dwellers are demanding 400 sq. ft. instead of the one lakh houses, each measuring 225 sq. ft. have already been constructed. Moreover, houses in some cities are being constructed without proper water or sanitation facilities and sometimes without proper connectivity so that the poor residents could go to their place of work.

Land is obviously the most critical problem. Resettlement far away from the city is not effective as residents have to commute to the city daily for their livelihood. This factor must be taken into consideration as shelter and employment are intrinsically connected. Fortunately, the Government has conceded and decided to upgrade slums by giving a part of the land for slum re-housing and allotting the other part to the developer for commercial use. 

Likewise, to achieve its targets, the Government needs to take actions through a comprehensive and realistic strategy. These could include: A five-year moratorium on forced evictions, but where necessary ‘proper’ rehabilitation be arranged with basic facilities; Reinstating of housing or shelter rights to the displaced, including those evicted in recent years, through JNNURM’s funds or other schemes; Regularization of unauthorized colonies; or else relocation through a proper plan; Slum upgradation/renovation and progressive housing development with bestowing of occupancy rights; Night shelters for pavement dwellers and the homeless in all the metros; Encouragement to NGOs and community based organizations (CBOs) in assisting and facilitating self-help housing schemes.

There can be no two opinions that India should be made slum free. However, the Government should be cautious that its plans and projects have a definite pro-poor approach. It cannot afford to merely run the bulldozer. ---INFA

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