The Hindu        30.05.2015

Boost for affordable housing

National Housing Bank’s special urban housing refinance scheme extends a helping hand to low-income urban households, writes K.A. Martin

The National Housing Bank (NHB) has come out with a special housing refinance scheme for low-income households in urban areas leveraging a $100-million loan from the International Development Agency (IDA).

An NHB document on the new scheme said that refinance would be provided to primary lending institutions on the basis of their loans to low-income urban households for building, purchasing, or renovation of houses. These loans must be secured through collateral property or in another way.

Urban households with an annual income not exceeding Rs.2 lakh are eligible for benefits under the new scheme. The loan amount should not exceed Rs.5 lakh. It is also a must that the beneficiaries have income from the informal sector. The loans should have been disbursed either on or after February 25, 2013. The loan-to-value ratio must not exceed 80 per cent.

The NHB has also said that the benefits under the new scheme should be extended only to projects that conform to the prescribed social and environmental due diligence requirements.

Introducing the new scheme, the NHB document said that the housing finance market in the country had developed at a robust rate over the last 25 years. There are numerous large, small, and medium-sized housing finance companies spread across the country. Besides, commercial banks, regional rural banks, and urban cooperative banks too provide loans for housing purpose, making the market vibrant.

However, the NHB document noted that most of the growth in the housing finance sector took place in the upper- and middle-income groups. Low-income groups still have little access to housing finance from the formal sector.

The situation has led to shortage of houses in the low-income group. A study by a technical committee appointed by the government on housing requirements in the country said that there was a shortage of 17.84 million houses in the country (2012) in the urban areas among the low-income or economically weaker groups.

Taking the situation into consideration, the government is working to achieve housing for all by 2022.

The NHB states that the benefits under the new scheme should be extended only to projects that conform to the prescribed social and environmental due diligence requirements

The Hindu          02.03.2015   

‘Water mafia’ gets busy in new BBMP areas as summer approaches

As summer approaches, water has already become a scarce commodity in most new areas in Bruhat Bangalore Mahanagara Palike (BBMP) limits.

With underground water being the only source for residents of newly added areas (the erstwhile seven city municipal councils, one town municipal council and 110 villages that were added to the BBMP limits), a parallel water supply system is working right under the nose of Bangalore Water Supply and Sewerage Board (BWSSB).

Exploiting the situation and forcing residents to pay through their nose is a “water mafia” that also involves local politicians and valvemen. Residents who own borewells and erstwhile city municipal council valvemen are making hay. This network is well established, for example, in Hongasandra and Begur wards.

Residents here can get regular piped water from both private and community borewells if they are ready to pay.

In New Mico Layout, borewell owners have drawn pipelines from the borewell point to houses. These lines crisscross open drainages and storm-water drains. In some places, they even run along drains, leaving enough scope for water contamination.

This apart, valvemen, allegedly in connivance with local politicians, have drawn a similar pipeline network from community borewell points to houses. Although these are community borewells and are meant for free supply, the valvemen collect charges from each house. A source alleged that a part of this money goes to the local politician.

Madhu, a valveman who manages the supply in New Mico Layout, said it was a regular supply for two to three hours in each area. He said there was no fixed charge and residents usually pay him between Rs. 50 and Rs. 100 a month.

C. Siddaiah, a resident of 16th Main ‘B’ Cross in this area, said this system ensured that residents had a regular supply. “Otherwise we have to pay heavy amounts for tanker water,” he said.

A senior BWSSB official said, “We have not got any complaints from people about being fleeced by valvemen. If there is any specific complaint, we will take action.”