Affordable dwelling

The State paper on Credit Potential for Housing in Assam for the year 2021-22 released by the National Bank for Agriculture and Rural Development (NABARD) has sounded a timely alert for the State government to take decisive steps for meeting the housing needs of the people. The NABARD has highlighted that land has become scarce and availability of land at an affordable price for purchase and construction of houses by individuals is a challenging one. Besides, cost of land is increasing every year, which is beyond the reach of common people. The apex development finance institution has given a pragmatic suggestion of strengthening the Assam State Housing Board (ASHB) through budgetary support by the State government and facilitating the board in getting suitable land for construction of houses, apartments. It has suggested that the banks may consider accepting 'Income Certificates issued by Revenue Circle Officer concerned' for housing loan purpose in respect of those individual in rural areas who do not have Income Tax returns. Insistence by banks on IT returns for the previous three years come in the way of credit access for housing needs of many who are compelled to approach informal credit channels to avail loans at high interest rates that escalates the house building cost and adversely impact on household budget expenses. The NABARD says that in 5-10% cases rural houses are built on agriculture land and in those cases, conversion of agriculture land is out of the is a tedious and time taking process which the Revenue Department needs to address. It is advisable for the Revenue Department to exercise caution that any relaxation in conversion norms comes with a safety shield against rampant conversion of farmland by land mafia in the name of rural housing. Unplanned conversion of agricultural land for non-agricultural purposes will have adverse impact on food security and exploitation of poor and marginal farmers with small land holdings. The apprehension over unplanned conversion of agricultural land in the state came to the fore when the State Cabinet approved an ordinance that sought do away with taking multiple permission for setting up MSME units and replaced with a self-declaration and land for the unit was deemed to have been converted under the ordinance. The State government, however, rolled back its decision following widespread protest. The NABARD paper brings to light to that budgetary allocation under two state plan schemes implemented by the ASHB- Rental Housing Scheme and Janata Housing Scheme (EWS) people have been discontinued from the financial year 2017-18 by the State government. Under Rental Housing Scheme, ASHB constructed residential units for general public with financial assistance from the State government on its own land while under Janata Housing Scheme, financial assistance is provided to people from economically weaker sections with fund received from the State government to construct houses on their own land. With effect from April 1, 2019, the State government launched 'Aponar Apun Ghar Scheme. Under the scheme, one-time financial support (as interest subsidy) ranging from Rs.1 lakh to Rs. 2.50 lakh is being provided to the permanent resident of Assam with minimum Individual Housing Loan of Rs. 5 lakh and maximum loan amount up to Rs. 40 lakh sanctioned on or after 01 April 2019 by banks. The annual income of composite family shall not exceed Rs. 20 lakh from all sources. Inconsistency of policy creates confusion which can be avoided by ensuring wide ranging consultation with the stakeholders for correct understanding of the housing requirement in all respects such as availability of land, access to bank loans, collaterals. Under the Pradhan Mantri Awas Yojana – Gramin (PMAY-G) 1,22,566 houses have been sanctioned by the Panchayat and Rural Development Department which are under construction in the state. Minimum unit size of PMAY-G house is 25 square metres, and the unit assistance is Rs. 1.20 lakh in plain areas and Rs. 1.30 lakh in hilly states and difficult areas. Rising cost of building materials like cement, steel, brick, sand etc. in the state impact housing cost and amount of assistance, therefore needs review and upward revision. The State government should take action to curb irrational price hike in building materials so that objective of PMAY-G and other housing assistance schemes is not derailed from achieving their goals. Housing is a basic need and affordable housing is critical for balanced development. Maintenance and upgrading the constructed house are equally important to ensure sustenance of the liveable condition which should dovetailed with housing scheme. The State government must keep in mind that land is a sensitive subject in Assam and therefore the government must be careful while pushing the housing policies and suggestions to relax land acquisition norms. Encouraging cooperative housing projects in which the land remains with the community and the ownership is not handed over to private developer can be a pragmatic solution.