Shelter is a basic need of a citizen which is
critical for determining the quality of human life.
A roof over the head endows a shelterless person,
with an essential asset and improves his physical
and mental well being. Hence, fulfilling the need
for rural housing and tackling housing shortage
particularly for the poorest is an important task to
be undertaken as part of the poverty alleviation
efforts of the Government. The Indira Awaas Yojana
(IAY) is a flagship scheme of the Ministry of Rural
Development. Under the scheme, financial assistance
is provided to the Below Poverty Line (BPL)
households in the rural areas for construction of
dwelling units. It has been in operation since
funding of IAY is shared between the Centre and
States in the ratio of 75:25. In the case of Union
Territories, entire funds of IAY are provided by the
Centre. In case of North East States, the funding
ratio between the Centre and States is 90:10. The
ceiling on construction assistance under IAY is Rs.
45,000 per unit in the plain areas and Rs. 48,500 in
hilly/difficult areas/IAP districts. For upgradation
of kutcha house, the financial assistance is Rs.
15,000 per unit. In addition to the unit assistance
availed, a beneficiary can also borrow a top-up loan
upto Rs. 20,000/- from any nationalized Bank at 4%
interest per annum under Differential Rate of
Interest (DRI) Scheme.
The criteria for allocation of IAY funds to the
States and UTs involve assigning 75% weightage to
housing shortage and 25% to poverty ratio. The
allocation amongst districts is based on 75%
weightage to housing shortage and 25% weightage to
SC/ST component. Further, 60% of the IAY allocation
is meant for benefiting SC/ST families, 3% for
physically handicapped and 15% for minorities. Also
the IAY houses are expected to be invariably
allotted in the name of women. In addition, 5% of
the central allocation can be utilized for meeting
exigencies arising out of natural calamities and
other emergent situations like riot, arson, fire,
order to introduce transparency in selection of
beneficiaries, permanent IAY waitlists have to be
prepared gram panchayat wise by the States/UTs.
These lists contain the name of deserving BPL
families who need IAY houses in order of their
poverty status based on the BPL list 2002. Gram
Sabha select the beneficiaries from the list of
eligible BPL households/Permanent IAY waitlist
wherever it has been prepared.
of an IAY house is the sole responsibility of the
beneficiary. Engagement of contractors is prohibited
and no specific type, design has been stipulated for
an IAY house. However, sanitary latrine and smokless
chullah are required to be constructed alongwith
each IAY house. For construction of a sanitary
latrine, the beneficiary can avail of financial
assistance as admissible under the Total Sanitation
Rural Housing is one of the six components of
Bharat Nirman Programme.
Under Bharat Nirman Programme Phase-I, 60 lakh
houses were envisaged to be constructed through
Indira Awaas Yojana all over the country during the
four years i.e. from 2005-06 to 2008-2009. Against
this target, 71.76 lakh houses were constructed with
an expenditure of Rs. 21720.39 crore. The target for
the next five years period starting from the year
2009-10, has been doubled to 120 lakh houses.
During the last three years of the Bharat Nirman
Programme Period-Phase-II approximate 85 lakh houses
have already been constructed. Since inception of
the IAY scheme about 286.88 lakh houses have been
constructed with an expenditure of Rs. 85141.13
Convergence of Various Centrally Sponsored Schemes
Under Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY) each IAY beneficiary can get a free
electricity connection to his house, under Total
Sanitation Campaign (TSC) an IAY beneficiary who
will construct a sanitary latrine can get TSC funds
in addition to the unit assistance he has got under
IAY, all willing IAY beneficiaries can get the
benefits available under Janshree Bima and Aam Aadmi
Bima policies, under DRI, an IAY beneficiary can
borrow up to Rs. 20,000/- from any Nationalized Bank
at 4% interest per annum to top up the unit
assistance he has got under IAY.
Allotment of Homestead Plot
A scheme was launched on 24th August,
2009 as part of IAY, for providing homestead sites
to those rural BPL households whose names are
included in the permanent IAY waitlists but who have
neither agricultural land nor a house site. Since
inception of the scheme, funds amounting to Rs.
347.46 crore have been released to States namely
Bihar, Andhra Pradesh, Karnataka, Kerala, Rajasthan,
Sikkim, Uttar Pradesh and Maharashtra for purchase
of land and Rs. 1367.31 crore have been released to
Karnataka, Gujarat, Rajasthan, Tripura, Madhya
Pradesh, Chhatisgarh, West Bengal, Rajastan,
Maharashtra and Jharkand as incentive for additional
houses for providing homestead sites.
The Indira Awaas Yojana is being continuously
reviewed through Monthly and Annual Reports received
from the States/UTs. Senior officers at the level of
Deputy Secretaries and above in the Ministry are
appointed as Area Officers for different States/UTs.
These Area Officers visit the allotted States/UTs
from time to time and inspect the actual
implementation of the programme in the field. They
also participate in the State Level Coordination
Committee Meetings providing thereby, a source of
effective link between the policy makers, i.e., the
Government and the implementing agencies (States /UT
Governments). The programme is also reviewed at the
meeting with the State Secretaries of Rural
Development and with the Project Directors of DRDAs
in the workshops held every year. From April 2007
onwards, an online monitoring mechanism has been put
in place to enable DRDAs to upload their monthly
progress reports into the website of the Ministry.
web-based local language MIS Programme ‘AWAASsoft’
was launched, this software captures
beneficiary-wise data and is accessible to all the
stake holders, beneficiaries and citizens at large.
the last year 2011-12, Rs. 9991.20 crore (including
Rs. 500.00 crore for Homestead Component) were
allocated for Rural Housing for construction of
27.27 lakh houses under Indira Awaas Yojana, against
the physical target of construction of 27.27 lakh
houses, 24.66 lakh houses were constructed after
utilization of Rs. 12814.88 crore and 26.95 lakh
houses were under construction.
the current financial year 2012-13, the total
budgetary outlay for Rural Housing is Rs. 11075.00
crore. Out of which Rs. 10513.20 crore has been
earmarked under Indira Awaas Yojana (IAY) for
construction of 30.09 lakh houses and Rs. 553.00
crore for Homestead Component. Rs. 4783.70 crore has
already been released as first installment of funds.
Against the physical target, 3.83 lakh houses have
been constructed so far.
*Inputs from the Department of Rural Development,
Ministry of Rural Development.