1.

Pimpri Chinchwad Experience in

Implementing Affordable Housing Projects


National Symposium on Affordable Housing

22
nd
J uly 2013



State: Maharashtra
City: Pimpri Chinchwad
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2.
Agenda
Achievements in Housing Projects under JnNURM
Slum Rehabilitation Housing Projects
EWS Housing Project

Project Learnings
Policy Hindrances


3.
Slum Rehabilitation Housing Projects
4.
Slum Rehabilitation Projects under JnNURM Progress
Nine projects worth Rs. 385 Cr sanctioned for In-situ rehabilitation of
18,832 slums families on Municipal Land at 7 locations.
83% (i.e Rs. 270 Cr) of sanctioned grants received.
Achievement
7316 Houses completed
4368 beneficiaries families rehabilitated.
Project Cost
For implementing 50% of project, PCMC has done the Gap funding of Rs 16
Cr which is over & above its sanctioned contribution. (Current Expenditure
Rs. 332 Cr)
For implementing 100% of project, gap funding of Rs. 150 Cr is required.





5.
Project Photos
Link Road Site
Milind Nagar
Site
6.
Project Photos - BSUP Housing Project I at Sector 22
7.
Typical Dwelling Unit (25 Sq. Mtr)
8.
EWS Housing Project
9.
Comparison of Housing Facilities Slum Rehab. Vs EWS





Sr. No. Slum Rehabilitation Housing EWS Housing
1 Carpet Area 25 Sq. Mtr Carpet Area 37 Sq. Mtr

2 Multipurpose Hall Multipurpose Hall
3 Kitchen Kitchen
4 Separate Water Closet (WC) &
Bathroom
Separate Water Closet (WC) &
Bathroom
5 Water & Electrical Connection Water Supply & Electrical
Connection
6 Lift, Parking Space, Road, Street
Lighting etc.
Lift, Parking Space, Road, Street
Lighting etc
7 Balcony
8 Bedroom
10.
EWS Housing under JnNURM - Progress





One project worth Rs. 449 Cr sanctioned for providing housing to
13250 EWS families.
50% (i.e Rs. 176 Cr) of sanctioned grants received for project
implementation.
Achievement
5316 Houses completed
1700 beneficiaries families will receive housing in Phase I allocation by
August 2013.
Project Cost
For implementing 50% of project, PCMC has done the Gap funding of Rs
88 Cr which is over & above its sanctioned contribution. (Current
Expenditure Rs. 327 Cr)




11.
Project Photos EWS Housing (6720 Dus)
Completed Buildings
12.
Typical Dwelling Unit (37 Sq. mtr)
13.
Project Learnings
14.
Key Learnings (1/3)
Price Escalation & Affordability
For Vitthalnagar Slum Rehabilitation Project (Per Unit Cost)









If ULB does not have the capacity to absorb the cost, the project will not be
affordable.




Funding
Source
Contribution
during Sanction
(Nov 2006)
Contribution
during Tendering
(Nov 2007)
Contribution during
Completion
(Dec 2011)
GoI 1.14 1.14 1.14
GoM 0.82 0.82 0.82
Beneficiary 0.18 0.40 0.40
ULB - PCMC 0.37 1.51 2.22
Total 2.5 3.87 4.58
(All figures in Rs Lakh)
15.
Key Learnings (2/3)
Slow decision making: No defined policy on beneficiaries
selection criteria
Beneficiaries do not have the proof of residence for year 2000 or earlier.
People migrate between biometric survey and construction of houses.
New people who occupy the slum area do not vacate the land unless
their names are included in the beneficiary list.
In one slum house, two to three families live. How will they live in 25 Sq.
Mtr dwelling unit?




16.
Key Learnings (3/3)
Bank stay away from providing loan to beneficiaries
Most Beneficiaries have defaulted on loan repayment for loan provided
in 2011. EMI non-payment period range from 8 months to 24 months for
an EMI of Rs 534.

Beneficiaries are told that Government housing is free of cost and no
action will be initiated against default on bank loan.

Loan recovery efforts under SARFAESI Act very tedious and generally
for loan amount below 25 lakhs such process is not undertaken. Loan
amount for housing scheme is less than Rs 50,000.




17.
Policy Hindrances
18.
Policy Hindrances









Hindrances Impact Need for Policy
Non-clarity on usage of
additional 1.5 FSI for
the Housing Project
8 months lost in getting
the provision approved
for EWS project from
State Department
Clear policy on the additional FSI
and its usage by the Implementing
Agency
1. Floor Space Index (FSI)



19.
Policy Hindrances
Hindrances Impact Need for Policy
JnNURM Policy
of 10%
contribution by
Beneficiary
Contractor claims higher than beneficiary
contribution due to time lost in convincing
beneficiaries to provide its contribution.

Large group of beneficiaries ( say 112 in
PCMC) required for forming a society.

Each beneficiary has to provide initial
amount of Rs. 7200 to initiate bank loan
process for Rs. 40,000.

If one person does not gives the initial
amount, the whole process get stuck.
Policy on beneficiary
contribution needs to be
re-looked.
2. Beneficiary Contribution



20.
Policy Hindrances









Hindrances Impact Need for Policy
Policy of giving
ownership of house
to beneficiaries
In earlier housing scheme of
1991, majority of beneficiaries
have shifted to 1bhk, 2bhk
houses and given the houses
on rent and earning rent from
Rs 5000 to10,000/month.

In cities within 5-10 years the
economic condition improves
considerably. Even
beneficiaries under JnNURM
schemes, have now moved to
better housing.

Rental housing policy needs
to be drafted wherein
houses needs to be
provided on nominal rental
basis till 15 years.

After 15 years, if the house
is still occupied by the
beneficiaries extension till
next 15 years needs to be
provided.

Such policy will also ensure
affordable housing to the
ever increasing migrants in
the city.
3. Ownership of Rehabilitated Houses



21.
Policy Hindrances









Hindrances Impact Need for Policy
Environment
compliances required
for Housing project of
area 5 acre or 20,000
Sq. Mtr or value more
than Rs. 50 cr
8 months lost in getting
the approval.

The proposal has to go
through three committee
before final approval by
the State department
Since Implementing agency is also
a Government entity, standard
guidelines on environment
provision required for the project
needs to developed.

Its compliance can then be
monitored by the State
environment dept.

4. Environment Clearance



22.
Policy Hindrances









Hindrances Impact Need for Policy
Shifting of religious
structures in the
Housing Project
24 months lost in
shifting religious
structure at Milindnagar
housing site.

Matter with Scheduled
Caste Committee, New
Delhi. Awaiting decision
Clear Policy guidelines needs to
be developed to arrive at a
decision, which will also reduce
the ambiguity.
5. Religious Structures



23.
Policy Hindrances









Hindrances Impact Need for Policy
In-Situ
rehabilitation -
Slow project
progress due to
non-availability
of land for the
transit camps.
36 months lost in initiating construction
activity after tendering since land was not
available for constructing the transit camp
Policy needs to be
developed for mass
housing, to provide clear
site for project.

This will help cities to
undertake housing
project by shifting the
existing slum dwellers to
these housing.
6. Non-Availability of land for transit camp



24.
Thank You