Page 73 - HUDCO-SHELTER-APR21

POLICY REVIEW

Table 1: Affordability Ratio of Different Income Groups (Deepak Parekh Commi ee)
Income Size EMI/Rent Income Ratio Cost of Housing to Income Ratio
Groups

EWS - LIG 300-600 sq.ft > 30% of household's gross > 4 times households' gross
monthly income annual income
MIG > 1200 sq.ft > 40% of household's gross > 5 times households' gross
monthly income annual income

Source: Deepak Parekh Commi ee Report on Affordable Housing, 2008

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA), Govt. of India in its 'Taskforce on
Affordable Housing' (2012) report takes note of both income and size criteria to define the concept.

Table 2: Affordability Definition (MoHUPA)

Income Groups Size EMI/Rent Income Ratio

• Minimum of 300 sq ft super built up area
EWS
• Minimum of 269 sq ft (25 sq m) carpet area
Not above 30-40% of
• Minimum of 500 sq ft super built up area household's gross
LIG monthly income
• Maximum of 517 sq ft (48 sq m) carpet area

• 600–1200 sq ft super built up area
MIG
• Maximum of 861 sq ft (80 sq m) carpet area

The affordability definition has undergone yet another change with the introduction of Pradhan Mantri
Awas Yojana (PMAY)-Housing for All (Urban) in 2015. The latest definition of affordable housing in India
as per PMAY-HfA-Urban is given in Table 3.

Table 3: PMAY-HfA-Urban Affordable Housing Definition

Income Groups Size- Carpet Area (sq.mt) Annual Income

EWS Upto 30 Upto Rs. 3 Lakh

LIG Above 30 - Upto 60 > Rs. 3 lakh upto Rs. 6 lakh

MIG-I Above 60- Upto 160 > Rs. 6 lakh upto Rs. 12 lakh

MIG-II Above 160- Upto 200 > Rs. 12 lakh upto Rs. 18 lakh

April 2021 Volume 22 No. 1- SHELTER 71