Presentation

at Ministry of Urban Employment & Poverty Alleviation 3rd December, 2005

Integrated Housing & Slum Development Programme (IHSDP)

To have an integrated and focused approach for development of slums and environmental improvement. combining the existing schemes of VAMBAY and NSDP under the new IHSDP Scheme . Scheme applicable to all cities and towns as per 2001 Census except cities/towns covered under Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) Scheme seeks to enhance investments in housing and infrastructural development 2 in urban areas.

Objective
To strive for slumless cities with a healthy and enabling urban environment by providing adequate shelter and basic infrastructure facilities to the slum dwellers of the identified urban areas.
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Coverage
The Scheme will apply to all cities/towns, excepting cities/ towns covered under JNNURM. The target group under the Scheme is slum dwellers from all sections of the community through a cluster approach (including BPL & APL Population).
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DURATION OF THE SCHEME

Seven years commencing from 2005-06 Evaluation of the scheme to be taken up before it enters Eleventh Five Year Plan
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Major Areas under the Scheme

Slum improvement/upgradation/relocation projects including upgradation/new construction of houses as under the VAMBAY scheme. Infrastructural facilities, like, water supply and sewerage as in the NSDP scheme. Cost of land for such projects not to be provided under the programme and to be borne by the State Government except when cost of land acquisition is borne by the State only for North

Eastern States and the hilly States of Himachal Pradesh, Uttaranchal and Jammu & Kashmir .
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Major Components
Title of the land : preferably woman. A&OE cost :Not more that 5% for preparation of the DPRs. Ceiling Cost for Dwelling Units: @ Rs.80,000/-per dwelling unit For special category/hilly States and difficult/far flung areas : 12.5% additional permissible over and above the prescribed ceiling cost per dwelling unit. Selection of Beneficiaries: By the state agency.
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Major Components
Minimum Floor Area of Dwelling Unit: 21 Sq.m.& preferably two room accommodation. Beneficiary Contribution : A minimum of 12% beneficiary contribution should be stipulated, which in the case of SC/ST/BC/OBC/PH and other weaker sections shall be 10%. State Governments to ensure a separate provision for upkeep and maintenance of the public assets created under the 8 scheme.

Admissible Components
Provision of shelter including upgradation & construction of new houses Provision of community toilets Provision of physical amenities like water supply, storm water drains, community bath, widening and paving of existing lanes, sewers, community latrines, street lights, etc. Community Infrastructure like provision of community centres to be used for preschool education, non-formal education, adult education, recreational activities etc.
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Admissible Components
contd../ Community Primary Health Care Centre Buildings Convergence of Social Amenities like pre-school education, non-formal education, adult education, maternity, child health and Primary health care including immunization etc. Provision of Model Demonstration Projects

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Admissible Components
contd../ Sites and Services/houses at affordable costs for EWS & LIG categories (land to be provided free of cost by State/ULBs) Slum improvement and rehabilitation projects

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FUNDING PATTERN
Central Government : State Government 80:20 For special category States, it will be in the ratio of 90:10. States share could be raised by the nodal/implementing agencies from the financial institutions/ beneficiary contribution/MPLAD/MLALAD funds.

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Release of Central Assistance

Central assistance (grant) released to go directly to the nodal agencies identified by the State government as Additional Central Assistance. Release of Central share to nodal agency will depend on availability of State share and submission of utilization certificates. 20% (State & FI share) to be deposited in a separate account to become eligible for the Central grant.
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Release of Central Assistance

State share to be deposited in a separate account to become eligible for the Central grant. 50% of the Central grant will be released to the State nodal agency after verification of the State share, and on signing the tripartite Memorandum of Agreement. Second instalment to be released based on the progress.
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INCENTIVES
Central Sanctioning Committee /State Level coordination Committee may sanction up to 10% of the available budgetary outlay to incentivise implementing agencies as indicated below: For adoption of innovative approaches and adoption of proven and appropriate technologies. For Information, Education and communication (IEC). For training and capacity building relating to project/ scheme. For preparation of Detailed Project Reports. For bringing about efficiencies in the projects.
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State Level Nodal Agency

The State Government may designate any existing institution as nodal agency for implementation of the scheme. The nodal agency will be responsible for the following: Inviting project proposals from ULBs/Implementing agencies; Techno-economic appraisal of the projects either through in-house expertise or by outside agencies through outsourcing; Management of funds received from Central and State Governments; Disbursement of the funds as per the financing pattern given in the guidelines; Furnishing of utilization certificates, in accordance with the provisions of GFRs, and quarterly physical & financial progress reports to the Ministry of Urban Development Maintenance of audited accounts of funds released to ULBs and implementing agencies
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PROJECT APPRAISAL
Urban Local Bodies and implementing agencies to submit detailed project reports to the designated State Level nodal agencies for appraisal. The State Level nodal agency to forward the appraised projects to Ministry of Urban Employment & Poverty Alleviation for consideration of CSC/State Level Co-ordination Committee, as the case may be.
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 The composition of the State Level Co-ordination Committee (SLCC) will be decided by the States. SLCC will ensure the following: Examine and approve project reports submitted by the local bodies/implementing agencies taking into account the appraisal reports; Periodically monitor the progress of sanctioned projects/ schemes including funds mobilization from financial institutions. Review the implementation of the scheme keeping in view its broad objectives and ensure that the programmes taken up are in accordance with the guidelines laid down. Review the progress of urban reforms being undertaken by ULBs/ implementing agencies.

State Level Co-ordination Committee

SLCC shall meet as often as required but shall meet quarterly to review the progress of 18 ongoing projects and for sanction new projects.

Central Sanctioning Committee

The composition of Central Sanctioning Committee (CSC) to be as per the VAMBAY Scheme, with following composition:Secretary, UEPA Chairperson Joint Secretary (UEPA) Member JS&FA Member JS(UD) Member CMD, HUDCO Member Director(UPA) Convener

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Areas of Operation of CSC

Housing, Integrated projects on housing and infrastructure development, submitted by the State nodal agencies on the recommendations of the State Level Co-ordination Committee, will be sanctioned by CSC.
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Areas of Operation of SLCC

Projects relating to providing only basic amenities/ improvement of infrastructure to the slum dwellers will be sanctioned by SLCC.
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URBAN REFORMS

Mandatory Reforms Optional Reforms

The identified cities would have the freedom to opt for any two optional reforms (State & ULB Level taken together) each year.
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Urban Local Body Reforms (at ULB Level)

Adoption of modern, accrual-based double entry system of accounting in Urban Local Bodies Assigning or associating elected ULBs with city planning function. Over a period of five years, transferring all special agencies that deliver civic services in urban areas to ULBs and in transition creating accountability platforms for all urban civic service providers. Introduction of e-governance and IT applications like, GIS and MIS for various services provided by ULBs. Reform of property tax with GIS, so that it becomes major source of revenue for Urban Local Bodies (ULBs).
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Mandatory Reforms :

Urban Local Body Reforms (at ULB Level) Levy of reasonable user charges by ULBs with the objective that full cost of operation and maintenance is collected within next five years. Internal earmarking within local body budgets for basic services to the urban poor. Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuring convergence of other already existing universal services of the government for education, health and social security. 24

Mandatory Reforms :

Mandatory Reforms :
(at State Level)
Repeal of Urban Land Ceiling and Regulation Act. Reform of Rent Control Laws so as to stimulate private investment in rental housing schemes. Rationalisation of Stamp Duty to bring it down to no more than 5% within next five years. Introduction of independent regulators for urban services. Implementation of decentralization measures as envisaged in Seventy Fourth Constitutional Amendment Passage of public disclosure law(to ensure preparation of medium-term fiscal plan of ULBs and release of quarterly performance information to all stakeholders). Passage of community participation law(to institutionalize citizen participation).
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OPTIONAL REFORMS (State and ULBs)

Revision of bye-laws to streamline the approval process for construction of buildings, development of sites etc. Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes. Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25% of developed land in all housing projects (both Public and Private Agencies) for EWS/LIG category with a system of cross subsidization. Introduction of computerized process of 26 registration of land and property.

OPTIONAL REFORMS (State and ULBs) contd../ Revision of bye-laws to make rain water harvesting mandatory in all buildings to come up in future and for adoption of water conservation measures. Bye-laws on reuse of reclaimed water. Administrative reforms i.e. reduction in establishment by bringing out voluntary retirement schemes, non-filling up of posts falling vacant due to retirement etc., and achieving specified milestones in this regard. Encouraging Public-Private partnership 27 Structural reforms.

Monitoring
Ministry of Urban Employment & Poverty Alleviation will periodically monitor the scheme through designated Officer of the Ministry for each State/UT. State level nodal agency would send quarterly progress report to the Ministry. CSC to ensure quarterly monitoring of various projects recommended/ sanctioned under the programme.
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TRAINING AND CAPACITY BUILDING (TCB)

The Central and State Governments to continuously strive for training and upgradation of the skills of the project personnel & the elected representatives. State Government to organize suitable training & capacity building programmes through reputed institutions in the field. TCB to form part of the DPR to be submitted by implementing agency.
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MEMORANDUM OF AGREEMENT (MoA)

Implementation of all mandatory reforms and two optional reforms by cities/towns to be made conditional to access central grant under the scheme. State governments/ULBs to execute tripartite MOAs with Government of India and ensure that such reforms are actually undertaken. The MOA to be submitted along with the Detailed Project Report.
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MISCELLANEOUS
ULBs/implementing agencies to keep an inventory of assets created and also to maintain and operate the assets and facilities created. The implementing agencies to open and maintain separate bank account for each project in a commercial bank for receipt and expenditure of all money to be received and spent. The nodal agency will maintain ULB wise and project-wise accounts under the 31 scheme.

MISCELLANEOUS
Projects taken up under the on-going schemes under VAMBAY during the last five years beginning from 2001-2002 will continue to be funded as per the existing guidelines of VAMBAY Scheme till completion of those projects. NSDP scheme has been discontinued from 01.04.2005, now merged with proposed IHSDP.
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