Housing for All 2020 Mission : Components and Highlights

Housing for All 2020 Mission: Components and Highlights

Question: Housing for All 2020 Mission is a comprehensive governance scheme. Discuss the components of this mission and its general highlights.

• Housing for All 2020 is a centrally sponsored scheme

• States and UTs have been provided with autonomy in this mission’s execution


• It has 4 components namely the following:

- Slum Rehabilitation
- Credit Linked Interest Subsidy
- Affordable Housing
- Beneficiary led Individual House Construction or Enhancement

• States and UTs can choose from the 4 components to meet housing demands within their territory.

• Process of project formulation and approval in line with Mission Guidelines should be left to States for faster formulation, approval and implementation of the projects

• Slum Rehab Component: Under this component, the Centre will provide a grant of INR 1 lakh for each house.

• State government would be able to demonstrate flexibility in using the slum rehab grant for any slum rehabilitation project opted for development using land as a resource for provision of housing to slum dwellers

• Credit Linked Interest Subsidy: This provides an interest subsidy of 6.5% on housing loans availed for a tenure of 15 years to be provided to Economically Weaker Sections/Lower Income Group(EWS/LIG) categories

• Subsidy pay out on NPV/Net Present Value basis is around INR 2.3 lakh per house for both the categories

• Central assistance to the tune of INR 1.5 lakh rupees per house will be granted for EWS category under affordable housing component in partnership with public and private sectors and beneficiary led construction or enhancement of individual house.

• States or their Housing Boards can set up projects of affordable housing based on Central Government grants

Highlights of the Mission

• 3 components of this mission will be implemented as a Centrally sponsored scheme whereas the credit linked subsidy component will be implemented as a Central Sector scheme

• Houses under the mission will be allowed under the female head of the households or joint name of the make head of the household and his spouse.

• It covers the complete urban area comprising 4041 statutory towns and an initial focus on 500 cities belonging to the Class 1 category

• It will be implemented in three phases:

- Phase 1-(April 2015 to March 2017): This will cover 100 cities selected from states, UTs as per their willingness
- Phase 2-(April 2017 to March 2019): This will cover additional 200 cities
- Phase 3-(April 2019 to March 2022): Covers the remaining cities

• There will be flexibility in coverage of number of cities in numerous phases and inclusion of additional cities by the Union Ministry of Housing & Urban Poverty Alleviation

• Credit linked subsidy component will be implemented across the nation in statutory towns from the start

Facts and Stats

• Housing sector contributes 5% to the GDP

• There is a shortage of around 18 million dwelling units in India presently
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