Urban housing policy to focus on OBCs, minorities
Indian Express

The Government has for the first time put thrust on housing needs for the minorities and OBCs in its new Urban Housing and Habitat Policy. The previous policy, which was in existence since 1998, had a peripheral mention of giving housing for SCs and STs, but this time there is a special emphasis on SCs, STs, OBCs, minorities and women.

With the focus on “affordable housing for all”, which is different from the previous policy’s “shelter to all”, the new policy—tabled in Parliament on Friday—lays emphasis on reserving a certain percentage of land or floor area for the service-providers as well.
“At least 10 to 15 per cent of land in every new public-private housing projects or 20-25 per cent Floor Area Ratio, whichever is greater, would be reserved for the housing of economically weaker sections through appropriate spatial incentives,” Housing Minister Kumari Selja said on Friday. The policy also envisages increased public-private partnership in the sector and encourages integrated townships.

“The urban housing shortage has been estimated at about 24.7 million units at the end of the 10th Five Year Plan and 99 pc of the shortage pertains to the economically weaker sections and low income groups,” she said.
Emphasis has also been laid on urban planning, increased supply of land, use of spatial incentives like additional Floor Area Ratio, transferable development rights and increased flow of funds, she said.
The plan also envisages for the private sector to be permitted land assembly within the purview of master plans and action plans for urban slum dwellers and special package

PPP model to bridge housing demand-supply gap
Financial Express

With a view to bridge the demand-supply gap in urban housing with a focus on low-income groups, the government on Friday announced a new policy that addresses the challenges with regard to availability of affordable shelter.
The Centre aims to spend Rs 361,000 crore through the public-private model to build about 25 million houses across the country over the next five years. The National Urban Housing and Habitat Policy, 2007, already approved by the Cabinet, envisage increased public-private partnership in the housing sector and encourage integrated townships in urban areas across the country.

"The urban housing shortage has been estimated at about 24.7 million units at the end of the 10th Five Year Plan. About 99% of the shortage lies in the economically weaker sections and low-income groups. Focus under this plan would be on symbiotic development of rural and urban areas in line with the objectives of the 74th Constitution Amendment Act," urban poverty alleviation minister Kumari Shailja said.
Inviting private partners from within and outside the country, Shailja said the state governments, which would help implement the policy, are expected to give incentives to the private players such as land availability at cheaper prices, use of spatial incentives like additional floor area ratio (FAR), and transferable development rights. "At least 10-15% of land in every new public-private housing projects or 20-25% FAR whichever is greater would be reserved for low income group through appropriate spatial incentives," she added.

As per the policy, private players will be permitted land assembly within the purview of master plans. Micro finance institutions would also be promoted at state level to expedite flow of finances, the policy states. Asked about ensuring the proper implementation of the policy, Shailja said: "We have set up a special monitoring committee to ensure the implementation of the plan and states would also be asked to set up separate committees for the same."

The government is simultaneously working on a model rent control Act that would replace the current one and pave the way for use of nearly 5,00,000 houses locked up due to litigation.

Private builders have to keep aside 10% for poor
Economic Times

It would now be mandatory for private builders to earmark at least 10% of their housing projects for economically weaker sections of the society. The Centre, on Friday, tabled the new urban housing policy which envisages increased public-private partnership in the housing sector and encourages integrated townships. The National Urban Housing and Habitat Policy, 2007, passed by the Cabinet earlier was tabled and ratified in both houses of Parliament on Friday.

The policy focuses on affordable urban housing with special emphasis on the urban poor, scheduled castes, tribes, backward classes and minorities.

The policy has also proposed to allow cross-border foreign institutional investments (FII) into residential mortgage backed securities. The opening up of the housing sector to FIIs will attract international capital into the housing finance sector to keep up with demand in the sector while supplementing domestic funds.

At present, FIIs cannot invest in rupee denominated pass-through certificates (PTC) since these do not have the status of securities. Mortgage-backed certificates are the most common type of PTCs, where homeowners’ payments pass from the original bank through a government agency or investment bank to investors.

“In order to facilitate RMBS transaction, stamp duty on the instruments of RMBS across all states would be rationalised,” the policy says.

“Urban housing shortage has been estimated at about 24.7 million units at the end of the 10th five year plan. As much as 99% of the shortage pertains to the economically weaker sections and low income groups,” urban poverty alleviation minister Kumari Shailja said at a press conference here.

“The focus under this plan would be on symbiotic development of rural and urban areas in line with the objectives of the 74th Constitution Amendment Act,” she said.

Within the overarching goal of “Affordable Housing for All”, emphasis has been laid on urban planning, increased supply of land, use of spatial incentives like additional floor area ratio (FAR), transferable development rights and increased flow of funds. “At least 10-15% of land in every new public-private housing projects or 20-25% FAR whichever is greater would be reserved for EWS/LIG housing through appropriate spatial incentives,” the minister said.

Govt may allow non-govt PFs to invest up to 10% in stocks
Tribune

The Government may next week give its nod for non-Government provident funds and gratuity funds to invest up to 10 per cent of their investible funds in the stock markets, a move that is likely to give a further boost to the benchmark stock indices such as Sensex and Nifty 50.

“We had sought comments on the draft proposals relating to the proposed change in investment pattern. A number of comments have been received. A final decision will be taken next week after studying the comments”, a senior Finance Ministry official said. Besides enhancing the investment limits, the Government also proposes to make eligible new instruments where these funds could be invested. The draft proposals were made public in September this year. Till now, these funds were allowed to invest up to five per cent of their investible funds in shares of companies that had an investment grade debt rating from atleast two credit rating agencies. Now, it is proposed to raise the limit to up to 10 per cent. The requirement of two ratings from two agencies will also be reduced to one agency only. Moreover, the investment can also take place in shares of BSE sensex and NSE Nifty 50 companies and ELS of mutual bonds.

They could also be permitted to invest in rupee bonds issued by multilateral agencies such as the World Bank and the Asian Development Bank and in term deposits of even private scheduled commercial banks, subject to certain conditions.