Housing for Economically Weaker Sections (Ews)

HOUSING FOR ECONOMICALLY WEAKER SECTIONS (EWS) AND SLUM DEVELOPMENT IN METROS -THE MUMBAI EXAMPLE

By Niranjan Hiranandani, Managing Director, Hiranandani Constructions Pvt. Ltd, Mumbai

As the Financial and Commercial capital of India, Mumbai has acted like a magnet, attracting people from all over the country. The reasons are wide and varied- from simply an opportunity of earning a living, to making a killing in the stock market, or making it big in Bollywood, fashion, business or sport. Today this great metropolis has over 12 million people residing and more pouring in everyday. Over 50% this population is forced to reside in slums and unauthorized settlements on both public and private lands-under unhygienic conditions coping with constant water shortages, improper health, sanitation and power facilities. If a fair size of Rs.40, 000 crores of the country’s GDP is generated under such circumstances, one can only conjecture as what could be possible contributions under more dignified living conditions.

We need to just step back a bit and pause to think as to how in 56 years of post Independence, we have descended to this level. The answers are not difficult to find. A combination of wrong policies at various times along the way and unfortunate recessionary market conditions during the period 1996 to 1999 would briefly sum up the situation. However, as a person born and brought up in this great city, I believe we can still salvage the remains and resurrect it to proportions that are comparable with the world’s best if not better. But for that to happen, we must not dwell in recriminations of the past. Rather, we need to bury the differences, adopt a holistic approach and undertake to do what is good for our city. This requires that there is close cooperation between the Centre, the State, the Local Authorities, the NGO’s, the corporates, the businesses and the citizens in a spirit of give and take. And, I believe the starting point for this is the instilling of pride in all the stake holders of this city.

The housing schemes that were initiated during the years 1996 through 1999 did not receive the support they needed as the industry itself was under recession and finance for large schemes was difficult to obtain. As a result, there has been inertia in taking up such proposals again. Let us examine this issue of housing in the broader perspective of not only regularizing and reconstructing those slums built prior to 1st Jan 1995 but also in providing for the fresh influx that will inevitably flow into this city. The slum policy could be formulated in three aspects:

Those slums which can be developed through private initiative must be encouraged. People will undertake projects that they find viable and for which they are able to arrange finance themselves. Hence existing schemes with some minor modifications should be continued.

Slum schemes that can be developed as a Co-operative by the slum dwellers themselves or through the support of NGOs who can act as catalysts in the development process.

Certain slum areas do not have the economic viability for redevelopment. Such slums could be upgraded without going through the reconstruction, redevelopment, transit accommodation and financing modes. Such schemes require that the dwellers come together and are willing to become owners securing tenure and title to the property as their incentive.

However, to be able to provide a real boost to the housing sector and create additional housing stock in the metropolis will require that the laws that are onerous or have long outlived their usefulness are forthwith dispensed:

Urban Land (Ceiling & Regulation Act).

That this act needs to be scrapped has been accepted. Punjab, Haryana, Gujarat, Karnataka and all the Union Territories among others have done so. Yet it still exists in two of the so-called progressive States like Andhra Pradesh and Maharashtra. The Finance Budget of 1999 initiated many incentives to the Housing Sector. But the benefits can percolate down to the actual customer only if impediments like this Act are scrapped.

Stamp Duty

The Government of India’s National Housing & Habitat Policy 1998 prescribed that Stamp Duty rates should be brought down to between 2% to 3% as per international norms. In Maharashtra the rates are 8%, while it is even higher in some of the other States. It is a firm conviction of many that just as when Income Tax was reduced from 97% to 35%, the collection went up 10 times; so also when Stamp Duty is reduced the collection will rise dramatically. It will also reduce evasion and corruption – which is currently so topical.

No Development Zone (NDZ) Lands

The Development Plan of Greater Mumbai provides for about 33% of lands in suburbs as NDZ lands. These are not green lands, but those where zoning will be done in future. In view of the shortage, there is an urgent need to rezone these lands as otherwise they will be encroached upon and compromise formulas for development will be required to be worked out.

Salt Pan Lands

There is a proposal pending wherein the Govt. of India’s Urban Development Dept. has taken the initiative of proposing that the Maharashtra Govt. terminate the leases of the defunct salt works and take over the lands for housing. The large tracts of land released on this account will be of immense benefit in providing low cost housing. The proposal needs to be approved as fast as possible.

Coastal Regulation Zone (CRZ).

From time immemorial, all great civilizations have traditionally sprung up on the sides of great rivers like the Indus, Nile, Tigris, Ganga, Brahmaputra etc. In the present times, port cities like Hong Kong, Singapore, San Francisco, New York to name a few have permitted FSI ( FAR) of 10 and more, reclaimed land from the sea and even built hotels and airports in the reclaimed area. But Mumbai has a rule that does not permit new development within 500 m of the High Tide Line. Fortunately, Nariman Point, Cuffe Parade and Marine Drive came into being before the law came into force in Feb 1991. Protecting the environment is an extremely important issue, but to apply the CRZ law without appreciation of ground realities is to ensure that Mumbai’s aspirations to become a world class city are stillborn.

Rental Housing

People the world over are able to acquire shelter on both rentals as well as ownership basis. However, some of our archaic laws have prevented Institutions as well as individuals from entering the rental market. And this has led to lack of availability of rental housing. Recent modifications in the Rent Control Act have definitely brought succor to the people. But confidence building measures are necessary for Institutions and individuals to invest in this as a form of business. Further, the MCGM needs to be encouraged to amend regulations to provide reasonable rates of taxes for housing given on rent.

Enabling provisions for Project Affected Persons (PAP).

The procedure followed in the rehabilitation of PAP often ends up leading to litigation and project delays and cost overruns. A large number of Infrastructure projects such as Roads, Railway lines, Water Supply, Sewerage etc. have been held up in the past 20 years due to court injunctions. It is now very necessary to bring in new laws so that schemes can be taken up and completed after alternate accommodation details for PAP have been executed satisfactorily.

Developing the Textile Mill lands

Over 100 hectares of textile mill lands exist in Central Mumbai – most of it in a state of disuse. The land presents an unique opportunity to address the demographic problems of the city from a long term perspective. But, to unlock the true potential of this huge tract of land requires a holistic approach and a combined effort from all of us.

9. Real Estate Mutual Funds

Real Estate Mutual Funds may seem out of place in the context of EWS and slum redevelopment. However, availability of funds in large volume and at reasonably low interest rates will provide a boost to the construction industry and thereby the Economy. The trickle down effect of a robust and bustling economy will be felt in all strata of society.

There are many other aspects also like providing employment for unskilled labour through implementation of mega infrastructure projects, creation of satellite townships with industrialization to curb unnecessary migration to major metros, social issues like health care, compulsory school education etc.

In conclusion, it must be reiterated that the National Housing & Habitat Policy 1998 is an excellent and well conceived document that has addressed all these issues and more. It has also been approved in the Lok Sabha. It now needs to be rigorously implemented at all levels to ensure that the basic need of “shelter to all” and a better quality of life can be provided for the citizens of India.