Govt may rope in pvt firms for rural housing

Part of it to be allotted to those below the poverty line.

Realising that providing land to the landless and the poorest is the biggest challenge in rural housing, the Standing Committee on Rural Development has recommended to the government to explore the possibility of inviting the private sector in this field.

Entry of the private sector in rural housing would be based on the condition that a certain percentage of houses would be provided on a mandatory basis to those below the poverty line.

The Committee learnt that the benefits of government grant based schemes meant for rural housing were being taken by those who were already in possession of land. For instance, 90 per cent of the houses under the Indira Awaas Yojna, the flagship programme of the Department of Rural Development, have been built on the land owned by beneficiaries. This is why the Committee is convinced of the urgent need for setting some sort of guidelines in a national government policy.

Funds is yet another challenge facing the government in its formidable task of providing shelter to all. Going by the Department of Rural Development's estimates of the average cost of construction of an average dwelling unit, the Committee noted there would be a requirement of Rs 55,000 crore by the end of the Eleventh Plan.

Thus the annual requirement of funds as per the government's own estimates would be Rs 11,000 crore a year. In contrast, the allocation made during 2006-07 was merely Rs 2,920 crore.

Just to put the enormous task before the government in perspective, since the implementation of the Indira Awaas Yojna in 1985, 146 lakh houses have been constructed with an expenditure of Rs 26,669.64 crore. (In addition to this, a small number of houses have been constructed under different small schemes such as credit-cum-subsidy scheme, Innovative Stream for Rural Housing and Habitat Development etcetra.)

As per the government's own estimates, approximately 9 lakh shelterless households are added to the housing strategy every year. If the annual incremental shortage is added, there will be a need to construct 161 lakh houses during the Eleventh Plan. Further, under the ambitious Bharat Nirman programme, 60 lakh houses are planned in the course of four years, beginning 2005-2006.

Even if the government succeeds in constructing 60 lakh houses by 2008-09, the target period of Bharat Nirman, there would still be a shortfall of 101 lakh houses.

The Committee learnt that targeting of beneficiaries was misdirected resulting in selection of 34,542 ineligible beneficiaries utilising funds to the extent of Rs 58.56 crore in 19 states and one Union Territory. In seven states, beneficiaries were allotted houses on recommendations of MPs/MLAs, district authorities, sarpanches etc.

For instance, the government has failed to make an assessment of the Indira Awaas Yojna in spite of investing Rs 26,669.64 crore. Further, the Committee found that no attempt has been made to verify the houses constructed under the scheme since its inception 21 years ago.