The government is considering linking the monthly paying capacity of the urban poor to the kind of house she/he can afford. For the lower income group (LIG) and economically weaker sections (EWS) of the society, the outgo towards purchase of a house may not exceed 25-30 per cent of the monthly household income.

According to sources in the Housing and Urban Poverty Alleviation Ministry, a carpet area of between 250 sq feet and 800 sq feet may be affordable for the urban poor. The carpet area will also be defined for the lower middle income and middle income group besides EWS and LIG, the sources said, adding this proposal was recently discussed at a meeting of panel set up by the ministry to re-assess the housing shortage in the country.

In the meeting, Housing and Urban Development Company CMD KL Dhingra, however, raised concerns regarding cost of such dwelling units and whether such units are feasible to be constructed or financed for this income category. The panel has hence asked HUDCO to arrive at cost estimates of these dwellings.

The government is in the process of re-visiting the housing shortage numbers in urban areas, estimated by a Planning Commission-appointed technical group in 2006 at 24.17 million. These estimates have been disputed by many as not reflecting the correct picture. In the recent meeting, the HUPA ministry said that the figure of 24.17 million is on “the higher side as it exceeds even the population of slum dwellers on one side and people living below poverty line on the other hand”.

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