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Comparison of Key Features of ISHUP, RRY, CLSS, CLSS for EWS/LIG and CLSS for MIG
Source publication
Recent modifications in the credit linked subsidy scheme—an important vertical under the Pradhan Mantri Awas Yojana (Urban)—have raised the income limits for eligibility of loans, increased the amount of subsidised loans, relaxed norms with regard to built-up area, and importantly, have included the middle-income group, diluting its core agenda of...
Context in source publication
Context 1
... The MoHUPA has released the opera- tional guidelines for the CLSS for MIG, which will be effective from January 2017. The CLSS for the MIG is further cat- egorised into two: MIG-I (annual house- hold income between`6between`6 lakh and`12and`12 lakh), and MIG-II (annual household income between`12between`12 lakh and`18and`18 lakh) (for details, see Table 2). ...
Citations
... Nearly half of the world's poorest population dwell in South Asia [44] and a significant number of them live in inadequate housing, such as urban slums and squatter settlements. Although the home financing market is dynamic in nature, lower-income groups make up the majority of its customers. ...
Housing is a basic human need and its affordability has become a concern with the exponential population growth, especially in densely populated developing countries. Rapid urbanization,
inadequate housing and increasing slums have also brought environmental challenges to urban areas of developing countries. To address such concerns, Green Affordable Housing (GAH) has emerged as a concept with the convergence of ideas and actions of affordable housing and sustainability. This research aims to identify the GAH adoption strategies and the financial options through case study analysis of three South Asian Economies (India, Pakistan, and Bangladesh) and validated the case study outcome by using content analysis approach. The findings reveal that India has made notable progress in establishing a GAH financial market, while Pakistan and Bangladesh are struggling due to a lack of appropriate funds and underrated financial markets. This study further proposed the financing framework to achieve GAH for South Asian economies because the low-income Credit Link Subsidy Scheme alone supporting the adoption of GAH would not be enough. The study provides policy recommendations for using Credit Link subsidies, energy-efficient mortgages, and Public-Private Partnerships for housing investment as effective methods for financing GAH.
... A couple of studies that attempted to understand the effectiveness of PMAY-U with respect to catering to the lowest quartile of the urban population reported that the mission is unable to serve them (Bhate & Samuel, 2023;Kumar & Shukla, 2022). Kundu and Kumar (2017) examined the design of CLSS and highlighted that expansion of eligibility criteria to include more beneficiaries might increase the chances of MIGs appropriating housing subsidies, further diluting the pro-poor agenda of the scheme. The current study builds on the existing body of research on the effectiveness and outcomes of PMAY-U and contributes to the literature on housing policy analysis. ...
... The policymakers were able to push to extend the scheme benefits to the advantaged group (MIG) under the pretext of economic development. However, Kundu and Kumar (2017) cautioned about the dilution of the pro-poor agenda of the scheme. The PMAY-U policy texts also indicated this drift in policy goals. ...
The Pradhan Mantri Awas Yojana (Urban)—Housing for All mission (PMAY-U), a flagship mission of the Government of India, aims to address the need for affordable housing in urban areas through five different schemes. One of these schemes is a housing subsidy scheme, the Credit Linked Subsidy Scheme (CLSS), which has significantly contributed to the success of PMAY-U. However, the design of the CLSS scheme favors households considered creditworthy, with stable and secure income streams. This article examines the gap between the policy design and practice of the CLSS scheme to explore how biases get embedded into the policy, resulting in the exclusion of economically vulnerable households. Schneider and Ingram’s Social Construction of Target Population (SCTP) framework is used to identify the target groups involved in the CLSS policy chain. These target groups and policymakers were interviewed to understand their interpretations of the concept of affordable housing. Using a relational lens, these interpretations are compared to know how the meanings of affordable housing get represented within CLSS policy documents. The analysis presents two key insights. First, the power and interests of the target groups predict their representation in policy design and policymaking. Second, privatized implementation design of the subsidy scheme embeds negative selectivism creating exclusionary tendencies in the CLSS design. Lastly, given the shrinking of the welfare state across the globe, this study raises the critical question of “who benefits and who loses?” while challenging the normative aspects of the policy goal of affordable housing.
... Continuing with such policies, in line with the United Nation's emphasis on greater tenure security in housing provisions, the incumbent union government also launched its own ambitious housing programme, the Pradhan Mantri Awas Yojana Housing for All (Urban) [PMAY-HFA (U)], to cater to the escalating unmet ownership housing needs of the Economically Weaker Sections (EWS) and the Low-Income Groups (LIG), including the Middle-Income Groups (MIG), by 2022. Nonetheless, how far this much-celebrated centrally-funded housing scheme will be effective in solving the housing needs of the urban poor remains questionable (Kundu and Kumar, 2017;Bhan, 2017;D'Souza, 2019). The sheer magnitude of households (18.78 million) which have been left with constrained housing choices (i.e. in relation to house type and tenure) and suffer from a high level of shelter deprivation today across urban India (MoHUPA, 2012) bears out this surmise. ...
This chapter highlights the intricate dynamics of housing poverty in Kolkata and asks a simple question: given the persistent structural duality of its hybrid urban contexts (e.g., poverty, inequality, and policies), can rental market reforms be a viable solution for Kolkata’s endemic housing poverty? This chapter argues that there is a desperate need for a balanced approach to resolving housing issues within the city by strongly considering rental housing, coupled with fair policies, backed by the existing robust demand for affordable rental housing in Kolkata, and for using the relevant levers to spur rental housing. Sustainable social rental housing in partnership with private and foreign players and the strong engagement of state and local governments might be the way forward. These are essential for not only catering to the colossal housing demand, but for also ensuring equitable housing outcomes in terms of quantity, usage, quality, and affordability among Kolkata’s diverse residents. There is also an emerging need for vacant housing surveys, as are being carried out in developed nations, to gain a more nuanced understanding of the sustainable use of existing resources.
... Continuing with such policies, in line with the United Nation's emphasis on greater tenure security in housing provisions, the incumbent union government also launched its own ambitious housing programme, the Pradhan Mantri Awas Yojana Housing for All (Urban) [PMAY-HFA (U)], to cater to the escalating unmet ownership housing needs of the Economically Weaker Sections (EWS) and the Low-Income Groups (LIG), including the Middle-Income Groups (MIG), by 2022. Nonetheless, how far this much-celebrated centrally-funded housing scheme will be effective in solving the housing needs of the urban poor remains questionable (Kundu and Kumar, 2017;Bhan, 2017;D'Souza, 2019). The sheer magnitude of households (18.78 million) which have been left with constrained housing choices (i.e. in relation to house type and tenure) and suffer from a high level of shelter deprivation today across urban India (MoHUPA, 2012) bears out this surmise. ...
This chapter highlights the intricate dynamics of housing poverty in Kolkata and asks a simple question- given the persistent structural duality of its hybrid urban contexts (e.g. poverty, inequality and policies), can rental market reforms be a viable solution for Kolkata’s endemic housing poverty? This chapter argues that there is a desperate need for a balanced approach to resolving housing issues within the city by strongly considering rental housing, coupled with fair policies, backed by the existing robust demand for affordable rental housing in Kolkata, and for using the relevant levers to spur rental housing. Sustainable social rental housing in partnership with private and foreign players and the strong engagement of state and local governments might be the way forward. These are essential for not only catering to the colossal housing demand but for also ensuring equitable housing outcomes in terms of quantity, usage, quality and affordability among Kolkata’s diverse residents. There is also an emerging need for vacant housing surveys, as is being carried out in developed nations, to gain a more nuanced understanding for the sustainable use of existing resources.
... The previous decade saw a significant effort to expand affordable public housing projects in Indian cities (Abhay and Sharma, 2022). Despite the Indian Government's significant efforts to provide adequate, affordable, and quality houses for economically weaker sections (EWS) and LIG (Kundu and Kumar, 2017;RAY, 2013), the housing sector still faces two significant problems: quantitative and qualitative. First, the number of houses provided by government or private agencies does not meet the demands of the LIG. ...
This paper aims to assess residential satisfaction of low-income group (LIG) public housing residents of Lucknow, India. This study mainly focuses on 38 sub-parameters grouped under six parameters, namely dwelling unit features (DUF), dwelling unit support services (DUSS), level of operation and maintenance (LOM), public facilities (PF), social environment (SE), and neighbourhood facilities (NF) of overall residential satisfaction (ORS). This study used data from a questionnaire survey. The results were gathered through descriptive and regression analysis. The results suggest that PPH and APH residents are satisfied with DUF, PF, SE, NF, and ORS, and that APH residents are additionally satisfied with DUSS and LOM. Pearson's correlation analysis reveals that all sub-parameters are positively correlated, with few exceptions such as street maintenance, garbage disposal, and distance to school, public transport, and fire stations. A multiple linear regression model has been used to estimate the impacts of each parameter and sub-parameter of residential satisfaction. This is the first study on the residential satisfaction model for LIG public housing in Lucknow.
... Subsequently, it has helped by a decline in overall housing shortage 1 from 1.63 million in 2001 (3% of the households) to 0.39 million (0.5% of the households) by 2011 (MoHPA, 2016). However, despite significant efforts by the Indian government to improve the quality of housing (e.g., Kundu & Kumar, 2017;PMAY, 2017;RAY, 2013-22), the cumulative effects in terms of housing shortage has aggravated considerably. This is because of the housing congestion and obsolescence 2 factors which have played significant roles toward housing shortage in urban areas of India (MoHPA, 2016). ...
Access to safe housing is considered an essential service as per the United Nation’s sustainable development goals. India is currently home to 2.4 billion houses of which 1.6 billion is rural. During 2001–2011, more than half a billion homes were added, and yet there exists acute shortage of quality housing with good public amenities. A report on urban housing shortage prepared by the Technical Group (TG-12) appointed by the Government of India estimated that the total number of households without “decent” housing condition in Indian cities counts to 18.78 million. Lack of sufficient number of houses adds to congestion and shortage. Misappropriation of funds further aggravates housing dilapidation, making the existing homes non-serviceable. Using the framework of TG-12, this study conducts an inter-district analysis of the obsolescence factor, congestion factor and homeless households across the megacity of Delhi for the years 2001 and 2011. Using district as the scale of analysis, housing shortage is measured by the Composite Index, computed for all nine districts for 2001 and 2011. We find that the composite index values are unequally distributed across the megacity’s districts. During 2001–2011, the overall shortage of housing had increased in NCT-Delhi, with the highest housing shortage felt in North, Central and New Delhi districts. Out of all nine districts, six showed increase in housing shortage. Also, the percentage of homeless households increased across all nine districts whereas the percentage of rental accommodations increased in seven out of nine districts.
... Some authors estimated the demand function of housing in urban India (Tiwari and Parikh, 1998), specifically for the metropolitan region of Mumbai (Tiwari et al., 1999) and six Indian cities (Roy, 2017). Some authors discussed the implication of changing eligibility criterion of the credit linked subsidy scheme, one of the verticals of Pradhan Mantri Awas Yojana -Urban, that favored higher-income groups (Kundu and Kumar, 2017), while others analyzed the housing conditions and mobility of the migrants in Urban India (Mahadevia et al., 2012). ...
Purpose – In India – the largest democracy and second most populated country globally – the housing research domain is relatively under-researched and under-theorized. To support and advance research in this domain, this study aims to form and organize the repository of extant academic knowledge in the subject matter of housing research in India.
Design/methodology/approach – This study uses a scoping review methodology and a thematic analysis method. All the articles analyzed in this study were systematically searched by following the scoping review approach proposed by Arksey and O’Malley (2005). An initial search found 365 articles and finally, 108 articles that met the inclusion criteria were analyzed using the thematic analysis method.
Findings – The data extracted from these 108 articles were analyzed using thematic analysis to arrive at four thematic areas, namely, housing policy, slum housing, housing finance and affordable housing. These thematic areas and 11 sub-themes present under them were used to present a thematic map of housing policy research in India.
Practical implications – This paper contributes to presenting an up-to-date literature review of the housing policy research in India.
Originality/value – To the best of our knowledge, this scoping review focused on housing research in India is the first of its kind. We hope that this study provides a repository of extant research on housing research in India to help current and future researchers.
... All these demotivate the poor even to apply for such a scheme. It has been further argued that EMI even at zero rates of interest would be out of the capacity for poor when the loan is higher than Rs. 3 lakhs (Kundu and Kumar 2017). Given the real estate situation in the country, we add to this argument that it is nearly impossible for the poor households to get a house in Rs. 3 lakhs budget (Table 3). ...
... Given the real estate situation in the country, we add to this argument that it is nearly impossible for the poor households to get a house in Rs. 3 lakhs budget (Table 3). There is a risk, therefore, that the subsidy meant for the poor will be cornered by real estate developers, private builders and the urban middle class (Kundu and Kumar 2017). Urban poor will remain houseless. ...
... PMAY-U emphasis has been on the land title, state agencies and formalized procedures, where housing is being treated as "marketable commodity" with a massive subsidy component. This shift has the propensity to strengthen the exclusionary model of urbanization, which would make it increasingly difficult for the poor and the LIG households, the homeless, slum dwellers and distress migrants to access shelter and live in the cities (Kundu and Kumar 2017). ...
Affordable housing signifies the importance of capacity to pay for one’s housing and is a market based concept. The fundamental difficulties with the urban poor remain that some households cannot afford adequate housing at any stage. The level of poverty among urban poor in India, affordable housing policy & programmes and the real estate reality of the country show a great deal of mismatch. The paper, using NSSO 68th round CES data and ICE360 data, tests the Engel’s law to determine the disposable income of the poor for housing. Poor spent a greater share of their income on basic needs and do not have disposable income to pay for affordable house. Data collated from a private property website for 22 cities show that government’s approach of affordable housing is far from the market reality. Any shelter scheme which demands from the poor more than their average monthly expenditure on shelter will not become receptive to them.
... This will also be a relief for the builders having massive unsold housing stock. (Kundu & Kumar, 2017) The Despite the pronouncements made regarding housed to be provided to the poor at affordable prices and making urban India slum-free, several structural factors stand in the way the benefits reaching the targeted beneficiaries. The key factor in this has been the high Equated Monthly Installment (EMI) to be paid by them. ...
... The poor and LIG households also face problems in producing documents pertaining to ownership of land, duration of stay at the location, birthplace and employment linked certificates. The stringent eligibility criteria and the process of verification, often adopted by the agencies undertaking the slum development project, lead to their being excluded from the list of beneficiaries or falling in trap of unscrupulous agents, resulting in benefits going to non-targeted people (Kundu & Kumar, 2017). ...
... These verticals have been opened to non-poor households with regard to beneficiaries with the declaration of increase in the built-up area as well as income ceiling. The provision of selfcertification or affidavit as proof of income, linked to Aadhar and Jan Dhan Yojana, is further likely to help the non-poor households benefitting from the Missions(Kundu & Kumar, 2017). ...
The objective of the study is to contribute to the discussion in the academic literature on the relative efficiency of engaging public agencies, private developers and civil societies along with the beneficiaries, in the housing projects. In the context of social housing, engagement of the private sector through direct and partnership with public agencies has been subject of discussion and debate, particularly since the early eighties. It is often argued that private sector enjoys a relative advantage in terms of cost efficiency, timeliness in delivery and responding to the requirements of beneficiaries. On the other hand, claims have been made that public agencies, through the involvement of the community leaders and mobilization of beneficiaries, are capable of bringing down the costs substantially and increase social
benefits by reducing leakages or displacement of slum dwellers within a participatory
framework.
The present study tries to bring in definite empirical evidence in the context of these
alternative perspectives, based on an evaluation of three centrally sponsored verticals viz.
Beneficiary-led Construction or enhancement (BLC) (individual led), Affordable Housing in
Partnership (AHP) (private developers led) and In-situ Slum Redevelopment (ISSR) (public private partnership and community engagement) launched under the contemporary national policy of Housing for All by 2022 - Pradhan Mantri Awas Yojana Urban (PMAY U). The three Centrally Sponsored Scheme verticals namely BLC, AHP and ISSR, launched under PMAY U, for large cities of Andhra Pradesh have been analyzed in terms of their Benefit-Cost Ratios within a comparative framework, keeping the national level figures as the reference point.
Comparisons have also been made with All India and Rajasthan which is the other state,
covered in the study.
Official available information has been used for computation, sourced from National Housing Bank (NHB) RESIDEX, Census 2011, NSS 60th round, Labour Bureau, HPEC, MoUD, HUDCO, NBO, NBCC among others. A few of the parameters have been determined in consultation with the officials of various public agencies, select subject experts, functionaries in concerned Civil Societies and other stakeholders engaged in slums and affordable housing projects at ground level.
Affordable housing is primarily a market-based notion that emphasises the significance of one's ability to pay for housing. The main issue with India's urban poor is that some households can never, ever, ever afford suitable accommodation. Affordable home in India is a distant goal due to the interaction between their poverty and the country's housing market. The article tests Engel's law to ascertain the disposable income of the poor for housing using data from the National Sample Survey Office's 68th Round Consumer Expenditure Survey and India's Consumer Economy (ICE 360) Survey. The poor have less spare income and spend a larger percentage of their income on essentials, making it difficult for them to buy a home. The Pradhan Mantri Awas Yojana (PMAY), the government's lauded flagship initiative, is distant from the market reality, according to data compiled from a private property website for 22 cities.
