Indian J. Soc. & Pol. 06 (01):37-44:2019 ISSN: 2348-0084(P) ISSN: 2455-2127(O) A STUDY ON RECENT MAJOR HOUSING SCHEMES AND AVAILABILITY OF INSTITUTIONAL HOUSING FINANCE IN GORAKHPUR CITY KRISHAN MOHAN PATHAK1 1Research Scholar, Department of Economics, Deen Dayal Upadhyay Gorakhpur University Gorakhpur, U.P. INDIA ABSTRACT Objective of the present study is to review the running major Housing Schemes and availability of Institutional Housing Finance in Gorakhpur City. This study is divided into three main sections. It reviews the housing scenario and challenges of Housing Sector in India, intervention made by the Government and Housing Programmes/schemes and Finance availability in Gorakhpur District.The data used for the study is basically secondary data. Various annual reports of The National Housing Bank on Trends and progress of Housing in India, reports of The State Bank of India, The Punjab National Bank, HDFC, LICHFL, The Economic Survey, India Year Book, Census Report 2011, official website of Gorakhpur Development Authority etc., are main sources of data. Apart from this, information given by authorities of GDA and offices of the private builders has been used to complete the study. KEYWORDS: Housing Schemes, Housing Finance, Gorakhpur, PMSAY PROBLEMS OF HOUSING SECTOR IN INDIA The purpose of a housing finance system is to provide the funds which home-buyers need to purchase their homes. The Housing at one time was never an issue in the housing sector in India historically had significant gaps in Indian context. The joint family system meant that there was term of credit flow and market infrastructure. Lack of one house for the entire family and all the family members sufficient and affordable finance and construction has lived in the family home. The trend of migration to cities for resulted in poor living conditions for a large segment of the jobs first raises the issue of a house for a family. The advent urban slum population lacking access to basic civic of a nuclear family system further exacerbated the situation amenities and sub-standard hygienic conditions. with parent and children living away from each other. Rising concentration of people in urban areas also resulted in an Most of the towns in India have grown up increase in the number of people living in the slums and haphazardly. They have a large proportion of sub-standard squatter settlements. houses and slums containing insanitary mud-huts of flimsy construction poorly ventilated, over-congested and often The initial expansion of housing finance in India lacking in essential amenities such as water and light. This is was the outcome of government housing policies. Its specially so in the large industrial cities. These conditions evolution can be traced from the successive Five-Year Plans. have developed because of insufficient control over building For long, the focus was on centralized approach to housing activity by the State or Municipal Authorities. Local development. The government viewed housing within a Authorities have been generally indifferent to enforcing such social perspective, unlike the developed countries which bye-laws regarding building and sanitation as have existed.( viewed housing as an economic good with important Retrieved From forward and backward linkages with the rest of the http://planningcommission.nic.in/plans/planrel/fiveyr/1st/1pl economy. However, in the present times, the situation has anch35.html) According to census 2011, the urban undergone a change and the Governments have come to population of India increased by 91 million over a period of realize the potential of housing activities and its contribution 10 years. The census projected housing shortage at 18.78 to economic development. million in the beginning of 2012. Of these, economically In India, majority of home purchases are made weaker section (EWS) alone accounts for 10.55 million units through borrowing from banks and financial institutions. or 56.2 per cent of the total shortage. The low income group 1: Corresponding Author PATHAK : A STUDY ON RECENT MAJOR HOUSING SCHEMES AND AVAILABILITY OF …. (LIG) requires 7.41 million housing units or 39.4 per cent land, increased cost of construction, lack of private sector whereas middle and above income group have a deficit of participation, absence of viable rental market, inaccessibility 0.82 million or 4.4 per cent as indicated in the table and Pie to home loans by poor are some of the challenges which chart given below: need to be addressed for development of the affordable housing market. The technological innovations in low cost Table .1 Estimated Housing Shortage inIndia:2012-2017 ( In millions ) building material and construction practices lack popular Urban Housing Rural Housing acceptance in the market. There are also certain regulatory Category Shortage % of Category Shortage % of constraints such as long and cumbersome approval process, Total Total environment clearance, lack of clarity in building by-laws EWS 10.55 56.18 BPL 39.30 90.00 and implementation of the master plan.( . Mishra,2017), LIG 7.41 39.48 APL 4.37 10 MIG 0.82 4.38 Affordable housing has, thus, become one of the Total 18.78 100 Total 43.67 100 biggest challenges of the present time. Planning for a home has become imperative for the younger generation today Source- Working Group Report on Housing for12th five who are often forced to begin their career with the quest for year plan (2012-2017) a permanent home for themselves. Ever rising rents, fleecing Chart No. 1 builders unapproved land use, substandard building material etc. has all widened the gap between supply and demand. MIG Housing Shortage in Urban India INTERVENTIONS OF THE GOVERNMENT 4% In India, the necessity of providing accommodation for their own employees specially in smaller towns and remote places has been long recognized by Governments, LIG 40% both Central and Provincial, and some housing activity of EWS this description has been a regular feature throughout. Later 56% on, it has also been realized that housing for low-income groups, who are not necessarily Government servants, will have to be undertaken, at least in the bigger cities, to cope with the acute shortage of accommodation.(Retrieved From. http://www.planningcommission.nic.in/plans/planrel/fiveyr/ 2nd/2planch26.html) Report of Technical Group highlights a housing Since Independence, the Government of India has deficit of 18.78 million; 11.07 million houses were vacant in adopted a number of programmes to provide homes to the 2011 in urban India as per the Census of India. This brings poor. These include: to the mismatch in demand and supply in the housing market. Also, the housing surplus is in the higher income Integrated Subsidized housing schemes (1952) groups while 95 per cent of the deficit is in the EWS and Low Income Group Housing Scheme (1956) LIG categories. Slum Improvement/Clearance Scheme Environmental Improvement of urban Slums (1972) Further, projections indicate that India‘s urban National Slum Development Programme (1996) population which registered an annual growth rate of 2.76 in 2011 is estimated to grow to 814 million people by the year Scheme for Housing and shelter Upgradation 2050. This will pose a major challenge in provision of (1989) housing and basic amenities to the growing population Night Shelter (1988-89) especially the poor. This may lead to a growth in the number Two Million Housing Programmes of homeless population as well as short term migrants. VAMBAY (2001) Jawaharlal Nehru National Urban Renewal Mission High land prices force the poor to live in slums and (JNNURM) 2005 squatter settlements or to occupy the lands in the periphery Rajiv Awas Yojana (RAY) of the city. This results in the haphazard and unplanned Rajiv Rinn Yojana (RRY) development. Scarcity of developed and encumbrance-free 38 Indian J Soc & Pol 06 (01):37-44:2019 PATHAK : A STUDY ON RECENT MAJOR HOUSING SCHEMES AND AVAILABILITY OF …. Pradhan Mantri Awas Yojana-Urban (PMAY-U) population of 49,268 resides. This is around 7.32% of total which has launched in June 2015, to provide housing for all population of Gorakhpur city. by 2022. The scheme provides central assistance to Urban The Economy of Gorakhpur Mahanagar is Local Bodies (ULBs) and other implementing agencies primarily based on the services. There are branches of all through States/UTs. The programme has four verticals: the major nationalized banks as well as of private bank in the credit linked subsidy scheme (CLSS) and the other three city. In 2006 The Ministry of Panchayati Raj named centrally sponsored schemes namely, in-situ rehabilitation of Gorakhpur one of the country‘s 250 most backward districts existing slum dwellers using land as a resource through out of total 640. It is one of the34 district in U. P. Currently private participation; affordable housing in partnership; and receiving funds from the Backward Regions Gran Fund subsidy for beneficiary-led individual house Programme (BRGF).( Retrieved From https://en.wikipedia. construction/enhancement. In addition various Ministries wiki/Gorakhpur) org/) have had their own programmes targeted towards their area of work.( Retrieved From http://mohua.gov.in/cms/schemes- Gorakhpur Development Authority (GDA) has or-programmes.php) taken up the responsibility of undertaking construction of The government has also taken up several policy residential and commercial spaces as well as implementing measures to address the challenges of affordable housing. their projects in accordance with guidelines of UNESCO so The first National Housing Policy was announced in 1988. A as to preserve the Heritage of the City. Gorakhpur revised policy came into existence in 1994 with the change Development Authority (GDA) was formed by Uttar in central government. A new Housing and Habitat Policy Pradesh State Government under the act of UP Government was announced in 1998 with greater emphasis on the aspect Municipal Corporation and urban development 1973 for the of ‗Habitat‘ as a supplementary focus to housing.