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Prime Minister's Office13-May, 2005 15:56 IST
One Year of UPA Government : Major Decisions and Initiatives - Urban Employment and Poverty Alleviation



The UPA Government completes one year on May 21, 2005. During this period, the Government has taken several important initiatives. Some of these are being brought out in the series  ‘Major Decisions and Initiatives’.

            During the year, the Government took several policy initiatives in the Urban Employment and Poverty Alleviation sector.

National Urban Renewal Mission

             The National Urban Renewal Mission (NURM) to provide basic services to the urban poor for fulfillment of their basic needs, including security of tenure, housing, water supply, sanitation, education, healthcare and social security cover. Sixty cities have been identified for the proposed Mission comprising seven mega cities (4 million plus), 28 million plus cities and 25 other cities with less than one million plus population.  All the State capitals and capitals of two Union Territories with legislature are proposed to be covered.  Cities other than these 60 cities will be covered by Integrated Housing& Slum Development Programme (IHSDP), by combining the Valmiki Ambedkar Awas Yojana (VAMBAY) and National Slum Development Programme (NSDP) Schemes.

Housing and Habitat Policy

            A Conference of State Housing Ministers’ was held during November 29-30, 2004 in which it was decided to suitably revise the existing policy through a consultative process.  The new policy is aimed at accelerating supply of serviced land for housing with particular focus to Economically Weaker Section (EWS) and Low Income Group (LIG) categories.  A Task Force under the chairpersonship of Secretary, Urban Employment and Poverty Alleviation (UEPA) has been constituted for this purpose.


The Housing and Urban Development Corporation (HUDCO) has been declared a Mini Ratna in August, 2004.  As per provisional results, HUDCO disbursed loans to the extent of Rs.5,920 crore in 2004-05, out of which Rs.1,065 crore were for housing and Rs. 4,855 crore were for infrastructure projects.  After being declared Mini Ratna, HUDCO signed its first Joint Venture on March 29, 2005.HUDCO has also entered into new areas of financing like Telecom Sector, Special Economic Zones (SEZs), etc. 

HUDCO has floated a subsidised loan scheme at 6.5 per cent for repairs, retrofitting and reconstruction of new houses for economically weaker sections in Tsunami affected areas as against 7.5% presently applicable for EWS schemes.

HUDCO has signed an MoU with IIT, Delhi for setting up of a National Resource Facility on Bamboo Technology in their campus.

FDI in Townships


            To boost Foreign Direct Investment (FDI) in townships, housing built-up infrastructure and construction of development projects, the Government has reduced the minimum area to be developed from 100 acres to 25 acres (approx.) or built up space of 50,000 sq. meters and with a minimum capitalisation of $10 million for wholly owned subsidiaries or $5 million in the case of a Joint Venture with Indian partners. 

National Slum Development Programme

In 2004-05, allocation under NSDP was enhanced from Rs.363.94 crore to Rs.700 crore by the Planning Commission.  As reported by the States/UTs, since the inception of the programme and upto March 31, 2005, out of the total funds of Rs.3,089.63 crore released by the Central Government, an amount of Rs.2,130.09 crore has been spent.  68,129 Slum pockets have been covered and about 4.12 crore of slum dwellers have benefitted from this programme.

Swarna Jayanti Shahari Rojgar Yojana

During 2004-05, Central funds amounting to Rs. 122.01 crore were released to various States/ UTs for the implementation of Swarna Jayanti Shahari Rojgar Yojana (SJSRY). During this year, as reported by the States/UTs upto March 31, 2005, 68,636 micro-enterprises were set up to assist the urban poor in self employment and 1,06,394 urban poor were given skill upgradation training. In addition to this, 35.18 lakhs of mandays of work were generated under the wage employment component of SJSRY.

            A Task Force under the Chairmanship of Secretary (UEPA) has been set up in the Ministry with the objective to evolve a viable micro-credit mechanism for the urban poor/informal sector.

Valmiki Ambedkar Awas Yojana

During the financial year 2004-2005, Central subsidy of Rs. 269.41 crore was released for the construction of 1,13,004 dwelling units and 35,086 toilet seats. The first model demonstration houses of 252 dwelling units under VAMBAY was executed in nine months by the Building Materials and Technology Promotion Council (BMTPC) to promote proven innovative, eco-friendly and cost-effective building materials and construction technologies developed in the last few years. The cost saving was about 20 per cent when compared to conventional construction.

Projects for North Eastern Region

            The Ministry of UEPA is implementing a number of projects/schemes for the development of North Eastern States, including Sikkim, in the three identified areas viz. housing (predominantly for urban poor), poverty alleviation and slum improvement/upgradation. Various projects are under execution in the North Eastern States by agencies like National Building Construction Corporation Ltd. (NBCC), Hindustan Prefab Ltd. (HPL). During 2004, Rs.82 crore were released to various agencies for the execution of 18 projects in the North East.  Sanctions were also issued for setting up one Bamboo Mat Production Centre each in Assam, Tripura, Meghalaya and Mizoram.

Housing projects for Central Government Employees

The housing project comprising 218 dwelling units for employees of Comptroller and Auditor General of India (CAG) & 74 dwelling units for Central Government Employees was completed at Bhopal and Ahmedabad.  An innovative technology of using hollow blocks  has been used in the construction and due care has been taken to make the construction earthquake resistant.

The housing project comprising 720 dwelling units was completed in Noida, U.P at a total cost of Rs.85 crore. 

 Cost-Effective and Environment Friendly Technology

The following initiatives were taken during the year:

i)          Construction of Houses under VAMBAY Scheme

BMTPC is constructing 1040 demonstration houses for urban poor under VAMBAY scheme of the using cost effective building materials and construction technologies in 11 States namely,  Kerala, Orissa, Jammu & Kashmir, Leh, Uttranchal, Tripura, Chhattisgarh, Tamil Nadu, Maharashtra, Manipur, Rajasthan and Karnataka.

ii)         Model Toilets

Model Toilet Structures (4 in nos.) were constructed at MCD Model School, Indian Airlines Colony, Delhi, using new materials and technologies like rattrap bond masonry in burnt clay bricks and fly ash bricks; precast ferro-cement roofing channels for roof; plantation wood door shutters; angle iron door frames, etc.

iii)        Demonstration Structures using Bamboo

Ten Demonstration Structures with Bamboo based Technologies are being constructed in Mizoram. These structures consist of bamboo posts, bamboo trusses, ferro-cement walling with bamboo grid and a layer of chicken mesh and bamboo mat corrugated roofing sheets. Another ten Demonstration Structures with bamboo-based technologies are also being constructed in Tripura.


PIB  SF-27 (13.5.2005)

(Release ID :9247)

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