Urban Housing (Subject Code: 2714801)

Exam Date: 15-12-2014

P. G. CENTER IN CIVIL ENGINEERING DEPARTMENT

SARVAJANIK COLLEGE OF ENGINEERING & TECHNOLOGY, SURAT

MASTER OF ENGINEERING CIVIL (TOWN AND COUNTRY PLANNING)

Affiliated with

GUJARAT TECHNOLOGICAL UNIVERSITY

ME Civil (T&CP), Semester – I,Dec 2014

Presented by:

140420748011-Pathik Chaudhari

Faculty In-Charge:

Prof . Sejal Bhagat

Prof . Naresh Rokad

Prof. Himanshu Padhya

HOD

Civil Engg. Department

GRADUATE REPORT ON

Housing Finance System For India

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Table Of Contents

2

Sr.

No.

Name Of Topic

1 Introduction

2 Housing Scenario In India

3 Housing Scenario In India

4 Housing: The Problem Summery

5 The Role of Government

6 Functions of Urban Local Bodies

7 Concluding Remarks

8 References

Introduction

• Housing being one of the three basic needs of life alwaysremains in the top priorities of any person, society andeconomy.

• The problem of space, privacy, security and sanitation leadsto social, economic and environmental degeneration.

• Housing finance may be defined as the need to reconcile thethree partially conflicting objectives of affordability ofhouseholds, viability of financial institutions and resourcemobilization for the expansion of housing sector and of thenational economy.

3

Housing Scenario In India

• The development of satisfactory housing has always been thepriority of both the central and state governments.

• A rapid rise in population results in higher demand ofdwelling units for residential purposes.

• As the country enters an era of economic growth, economicliberalization and prosperity, the country seem not yet readyto house the growing population and provide work andservices and environmental infrastructure for all.

• The twin problems of affordability and availability prevail inmost part of the country.

4

Population and Housing Stock

Source: Census 2001.

Rural Urban Total

1981 1991 2001 1981 1991 2001 1981 1991 2001

Population

(Million) 523.87 628.70 742.00 159.46 217.60 285.00 683.33 846.30 1027.00

Housing

Stock 81.88 108.47 135.10 26.07 38.74 52.06 107.95 147.21 187.61

5

Housing: The Problem Summery

• Rapid population growth coupled with rapidly increasingurbanization and widespread poverty have created a seriousshelter problem in India, contributing to the proliferation ofslums, increased demand for urban infrastructure andservices, and declining quality of life for low-incomehouseholds.

• With the exception of government-sponsored housingprogrammes, formal housing finance institutions (HFIs) arereluctant to lend to low-income households because offactors such as the relatively high transaction and servicingcosts, irregular and unsubstantiated income sources, and theabsence of collateral in the form of title to property.

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The Role of Government

• The Government has adopted the role of a facilitator insteadof a provider.

• One of the major obstacles facing the public initiative forhousing is the unrestrained population explosion. Further, theconstant migration of people from rural areas to cities insearch of jobs puts housing and basic services in the urbanareas under considerable strain.

• The facilitating role of the government and other financialinstitutions along with private intervention in facilitatingfinance to address the housing needs of the society is anindication of the significance of the sector in overalldevelopment of the economy.

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Indian Financial System

• The Government implemented many of its schemes throughstate housing boards that allocated serviced land and housingto individuals based on social welfare objectives, notcommercial considerations.

• The 1970s marked two significant developments in thehousing finance sector. A public sector housing company,HUDCO, was established in 1970, and the first privatehousing finance company (HFC), HDFC, was established in1977.

• HUDCO served as the principal institution to financeGovernment-supported housing programmes

• HDFC introduced mortgage financing to India and hasbecome the largest and most successful HFC in the country.

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Group Sub Group Channel

Development

Financial

NHB

Financial

Institutions

Institutions NABARD P

U

B

L

I

C

Non-Banking

Finance

Company

Housing

Finance

Companies

Other NBFCS

Banks

Scheduled

Commercial

Banks

Private Sector

Banks

Public Sector

Banks

Foreign Banks

Co-operative

Banks

Scheduled

Urban

Cooperative

Banks

District Co-

operative

Banks

Scheduled State

Cooperative

Banks

Other

Institutions

Agriculture and

Rural

Development

Banks

Primary Land

Development

Banks

Apex Co-

operative

Housing

Societies

Housing

Societies

9

The Housing Finance System in India

Functions of Urban Local Bodies

• Given the importance of functions and responsibilitiesentrusted to the local self-governments, the issues relatinginstitutional structure of ULBs gain tremendous significance.

• These structures are not uniform across states or evenmetropolitan (or district) areas, and are plagued with politicaland administrative problems.

• These ULBs make the successful execution of devolvedfunctions a challenging task for the local bodies.

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Functions :

• Urban Planning Including Town Planning

• Planning For Economic And Social Development

• Roads And Bridges

• Water Supply For Domestic, Industrial And CommercialPurposes

• Public Health, Sanitation Conservancy And Solid WasteManagement

• Slum Improvement And Up-gradation

• Urban Poverty Alleviation

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Concluding Remarks

• It should be noted that at the time of Independence, India’s financial system was rather small although both savings and investment rates were very low.

•The rapid increases in population and migration of rural people to urban areas and expansion of industrial and commercial activities have created huge demand for housing in both urban and rural centres.

• Indian government had also decrease the demand for housing through formulated five year plans.

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References

• National Housing Bank (2002) “Report on Trend and Progress of Housing in India, June 2002”, India Habitat Centre, LodhiRoad, New Delhi – 110 003.

• Ferguson, Bruce (2001) “Process, Policy, and Public-Private Partnerships in Housing in Developing Countries: What Can the United States Learn?”, Housing Policy in the New Millennium, 07FERGUSON.PDF, pp. 175-201.

• financingcities.ifmr.co.in/ : Financing Small Citites

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Thank you

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