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THEME PAPER


                     CITIES AND AFFORDABLE HOUSING IN INDIA


                                                      –Making Land and Housing Market Inclusive






                                            This  paper  aims to explore effective   e.g. access to highways. The third way is
           DR. ALOK KUMAR MISHRA            ways to provide affordable housing to   to link IZ or IH to significant upzoning
           DR. AKSHAYA KUMAR                the Economically Weaker Sections and   of either particular areas or larger areas
           SEN                              Lower Income Groups in Indian cities.   to gain from the principle of land value
                                            It attempts to address  the potential   recapture. These measures will  go  a
                                            issues of residential  exclusion of the   long way to supplement public housing
            The problem of                  poor, including slum dwellers through   under  programmes like Housing for
            affordable housing in           the technique of Inclusionary Zoning   All.
            India is so huge that           (IZ) and Inclusionary Housing
            both markets and                (IH). While several innovative     INTRODUCTION
            governments need to             initiatives have been embarked     India  is  urbanizing and the
            work together to achieve        upon by the Central and State      nation’s future is urban. The
                                            Governments  in India to facilitate
            the social objectives           the provision of land and affordable   urban population of  India  has
            of inclusion. While             housing to EWS and LIG segments,   increased  from  286 million  in
            governments may                 they have not been  able to make an   2001 to 377 million in 2011. The
            focus on the poorest            appreciable  impact  on the supply  of   2018 Report of United Nations:
            of the poor segments,           affordable  housing. However, India   World Urbanization  Prospects–the
            inclusionary zoning             has  generated some  very successful   2018 Revision has predicted the
                                                                               figure to touch  the 877 million
            (IZ) and inclusionary           models of  inclusionary zoning like   by 2050, with more than 50
            housing(IH) methods             Gujarat Town Planning Scheme       percent of the global population
            can be useful to solve a        (TPS) with landowners/farmers  as   living in its cities and towns.
                                            partners in urban development, with
            part of the problem.            no cost to government  and without   The number of cities in the
                                            the cumbersome process of land     country with 1,00,000 or more
                                            acquisition.The  major  finding  of  the   population has  increased from
                                            study suggests  IZ and IH could be   394 in 2001 to 468 in 2011. While
                                            promoted in India in three ways. The   urbanization leads  to growth
                                            first is to provide for land reservation   in  secondary  and  tertiary
          Key Words: New Urban  Agenda,     for socially and economically weaker   economic activities in cities, it
          Affordable  Housing, Holistic  Urban   sections as in Gujarat Town Planning   also attracts migrants from rural
          Planning, Inclusionary Zoning     Scheme, with landowners as partners.   areas and smaller towns for
                                            The second is to  impose  a  modest   jobs, leading to a phenomenon
          Dr.Alok Kumar Mishra (alokmishra@  IZ  or  IH  requirement within  the   of ‘‘urbanization of poverty’’.
          uohyd.ac.in) is Associate Professor, School   existing zoning framework, where the   This posesserious  policy and
          of Economics  University of  Hyderabad.   developer bears the cost of subsidizing
          Dr. Akshaya Kumar Sen (aksen@hudco.  to the extent she/he is compensated in   managerial challenges. With
          org) is Joint General Manager (Eco.) &                               rapidly increasing urbanization,
          Fellow, HUDCO’s HSMI, New Delhi.  the form of cost offsets and incentives,   the  demand  for  housing



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