145;Capacity building is the biggest challenge in implementing JNNURM146;

The Ministry of Housing and Urban Poverty Alleviation is implementing the housing component of the Jawaharlal Nehru National Urban Renewal Mission JNNURM. Also under preparation are the New National Housing and Habitat Policy, an interest subsidy scheme on home loans, and an employment generation scheme for the urban poor. Minister of State independent charge for Housing and Urban Poverty Alleviation Kumari Selja discusses the challenges in implementing JNNURM and other initiatives in this interview with Sanjay Kr Singh.Excerpts:

How is the JNNURM scheme better than earlier slum redevelopment schemes?

Earlier, programmes like Vambay and National Slum Development Programme didn8217;t always run hand in hand. The slums remained where they were, or only a few people received the benefits. Under JNNURM, the entire slum will be redeveloped, not just a few BPL below poverty line houses. In addition to housing, the program will include sanitation, water supply, access to health services, and so on. Projects under this scheme will also offer security of tenure to dwellers.

How will you ensure security of tenure?

When state governments and municipal bodies come to us with a project proposal, security of tenure for beneficiaries must be an essential part of the proposal.

What do you see as the main challenge in implementing JNNURM?

Capacity building is the biggest challenge. The capacity for project preparation, appraisal, monitoring, and implementation is limited at the urban local bodies ULBs level. Besides, both states and ULBs have to implement reforms in a time bound manner. The ability to execute these reforms is wanting in several cases. Besides, the response from all the states has not been uniformly good: some have come up with more project proposals while others have lagged behind.

Why have crucial reforms such as repeal of Urban Land Ceiling and Regulation Act been included in the optional category?

The idea was to give states and ULBs opportunity to change over from their existing pattern of functioning.

In how many projects has private participation happened?

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The ministry has not received any such project so far. The involvement has to come at the state and city level.

In what ways is the new National Housing and Habitat Policy that your ministry is formulating, a step forward over the 1998 policy?

A lot has changed since the old policy came into existence. The gap between housing demand and supply for the urban poor has increased, as has the need for provision of sanitation and other basic amenities. Also, in view of limited public finances, the problem of urban housing and infrastructure can only be solved through a strong public-private partnership. The new policy will emphasise the role of the private and cooperative sectors strongly.

Are there any plans to make the EWS economically weaker section component mandatory for all housing projects?

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The new policy will suggest that all government and private projects should earmark 20-30 per cent housing for the poor. But the government of India can8217;t make it mandatory, though we will urge the states to adopt it.

What is the rationale behind the interest subsidy scheme on home loans for the poor that ministry is finalising?

With rising cost of land, the cost of urban housing has risen. As 35-40 per cent urban households lack purchasing power, the problem of housing this segment has assumed high proportions. Almost 15 per cent of the urban population today resides in slums. Hence, the government decided to come up with this scheme. At present, very little institutional financing goes to the EWS-LIG category. The idea is to create an enabling environment so that more credit can flow to this segment. Also, taxpayers get a tax deduction on repayment of their home loans. A similar benefit is now being extended to the EWS-LIG category through this scheme.