Housing is one of the basic requirements for human survival. For a

Indira Awaas Yojana
Housing is one of the basic requirements for human survival. For a
normal citizen owning a house provides significant economic and social
security and status in society. For a shelterless person, a house brings
about a profound social change in his existence, endowing him with an
identity, thus integrating him with his immediate social milieu. A housing
programme for the rehabilitation of refugees was taken up immediately after
partition by the Ministry of Refugee Rehabilitation and this lasted till around
1960. Approximately 5 lakh families were housed in various centres mainly
located in Northern lndia. A Village Housing Scheme was also launched as
part of the Community Development Movement in 1957, in which loans to
individuals and cooperatives were provided up to a maximum of Rs. 5000/per house. However, only 67000 houses were built under this scheme by the
end of the Fifth Plan (1980). In 1972-73, the Estimate Committee of the Lok
Sabha in its 37th Report pointed out that ‘‘the Committee is distressed to
note that although 83% of India's population lives in villages and about 73%
of the rural population reside in unsatisfactory kutcha structures, the
problem of rural housing has not received the close attention of the
Government’’. Following this, certain initiatives were undertaken by
Government including the launching of the House Sites cum Construction
Assistance Scheme which began as a Central Scheme in the 4th Plan and
was transferred to the State Sector with effect from 1.04.1974 on the
recommendation of the National Development Council (NDC).
The genesis of the Indira Awaas Yojana (IAY) can be traced to the
programmes of rural employment, which began in the early 1980s.
Construction of houses was one of the major activities under the National
Rural Employment Programme (NREP), which began in 1980, and the Rural
Landless Employment Guarantee Programme (RLEGP), which began in
1983. There was, however, no uniform policy for rural housing in the States.
For instance, some States permitted only part of the construction cost to be
borne from NREP/ RLEGP funds and the balance was to be met by
beneficiaries from their savings or loans obtained by them. On the other
hand, others permitted the entire expenditure to be borne from NREP/
RLEGP funds. Further, while some states allowed construction of only new
dwellings, others permitted renovation of existing houses of beneficiaries. As
per announcement made by the Government of India in June 1985, a part of
the RLEGP fund was earmarked for the construction of houses for SCs/STs
and freed bonded labourers. As a result, Indira Awaas Yojana (lAY) was
launched during 1985-86 as a sub-scheme of RLEGP. IAY, thereafter,
continued as a sub-scheme of Jawahar Rozgar Yojana (JRY) since its
launching in April, 1989. 6% of the total JRY funds were allocated for
implementation of lAY. From the year 1993-94, the scope of lAY was
extended to cover below the poverty line Non-Scheduled Castes/ Scheduled
Tribes families in the rural areas. Simultaneously, the allocation of funds for
implementing the scheme was raised from 6% to 10% of the total resources
available under JRY at the national level, subject to the condition that the
benefits to Non-Scheduled Castes/ Scheduled Tribes poor should not exceed
4% of the total JRY allocation. IAY was de-linked from JRY and made an
independent scheme with effect from 1st January 1996.
Since 1999-2000, a number of initiatives have been taken to improve
the Rural Housing (RH) Programme by making provision for upgradation of
unserviceable kutcha houses and by providing credit with subsidy for
certain sections of the poor. Emphasis has also been laid on use of cost
affective, disaster resistant and environment friendly technologies in rural
Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of
Rural Development to provide financial assistance to the BPL households in
rural areas for construction of a dwelling unit. The genesis of IAY can be
traced to the programmes of rural employment which began in early 1980s.
Construction of houses was one of the major activities under the National
Rural Employment Programme (NREP) in 1980 and Rural Landless
Employment Guarantee Programme (RLEGP) in 1983. IAY was launched as
a sub-scheme of RLEGP and thereafter it continued as a sub-scheme of JRY
in 1989. On 1st January 1996, it became an independent scheme.
The objective of the scheme is to primarily help the weaker
sections in rural areas who belong to Below Poverty Line (BPL) category by
granting financial assistance for construction of a pucca house.
The funding of the IAY is shared between the Centre and State, in the
ratio of 75:25 and in the case of UTs, 100% funding is done by the
Government of India. Moreover, in the case of NE States, the funding is
shared in the ratio of 90:10. The unit assistance for an IAY house is Rs.
45,000/- per house for plain areas and Rs. 48,500/- for hilly areas w.e.f.
01/04/2010. Rs. 15,000/- is provided for upgradation of the house.
Further, the 60 Left Wing Extremesim (LWE) affected districts will be
eligible for a higher rate of unit assistance of Rs.48,500/- applicable for all
sanctions issued w.e.f 01/04/2010 onwards.
In addition to the financial assistance under IAY, an IAY beneficiary
can borrow up to Rs. 20, 000/- from any Nationalized Bank at 4% interest
per annum to top up the IAY unit assistance under Differential Rate of
Interest (DRI) Scheme.
For those rural BPL Householders who don’t have house sites, from
the year 2009-10, provision has been made to provide house-sites as part of
Indira Awaas Yojana. This funding is to be shared between Centre and
States in the ratio of 50:50.
Indira Awaas Yojana is being implemented across the country (except
Delhi and Chandigarh) under which financial assistance is provided as
Grant-in-Aid to the rural BPL households for construction of a dwelling unit.
The ceiling on construction assistance under the Scheme is Rs.45, 000/per unit in the plain areas and Rs.48,500/- in hilly/difficult areas w.e.f.
1.4.2010. For upgradation of kutcha house, the financial assistance is
Rs.15,000/- per unit. In addition, IAY houses have been included under the
Different Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit
at an interest rate of 4%. Further, the 60 Left Wing Extremism (LWE)
affected districts will be eligible for a higher rate of unit assistance of
Rs.48,500/- applicable for all sanctions issued w.e.f 01/04/2010 onwards.
Under the Scheme, financial resources are shared between the centre
and the states on a 75:25 basis. In the case of UTs, 100% funding is done
by Government of India. However, in the case of North-East States, the
funding pattern is in the ratio of 90:10.
Since reduction of shelterlessness is the primary objective, 75%
weightage is given to housing shortage and 25% to the poverty ratios
prescribed by Planning Commission for state level allocation. For district
level allocation, 75% weightage is given again to housing shortage and 25%
to SC/ST population of the concerned districts. On the basis of allocations
made and targets fixed, District Rural Development Agency (DRDAs) Zila
Parishads (ZPs) decide Panchayatwise number of houses to be constructed
under IAY and intimate the same to the concerned Gram Panchayat.
Thereafter, the beneficiaries are selected from the Permanent IAY
Waitlists prepared with the approval of respective Gram Sabha. Such
Waitlists are prepared out of the BPL List 2002.
(e) The available resources under the Scheme in a district are earmarked
for various categories as under:
At least 60% of the total IAY funds and physical targets should be
utilized for construction/upgradation of dwelling units for SC/ST BPL
A maximum 40% for non-SC/ST BPL rural households.
IAY funds and physical targets will be earmarked for BPL minorities in
each State as indicated by the Ministry.
3% of the above categories are for physically and mentally challenged
If any particular category is exhausted or not available in a district,
allocation can be utilized for other categories as per priorities given in the
(f) From 2006-07 onwards, funds and physical targets under IAY are also
being earmarked for BPL minorities in each State.
Further, the dwelling units are invariably allotted in the name of a
female member of the beneficiary household. Alternatively, the same can be
allotted in the name of both husband and wife. Only in case there is no
eligible female member in the family the house is allotted in the name of an
eligible male member.
The construction of the houses is the sole responsibility of the
beneficiary. Engagement of contractors is strictly prohibited. Sanitary
latrine and smokeless chullah are required to be constructed alongwith each
IAY house.
A Task Force was constituted for examining various issues relating to
construction of IAY houses including the study to compare the quality of IAY
houses in various States. The Task Force has recommended, inter alia, that each
State Government should finalise its type designs along with technical and material
specifications. It is not necessary to have only one type design and one state can
adopt more than one type designs depending upon local conditions.
Necessary instructions have been issued to all the DRDAs regarding
Convergence of various Centrally Sponsored Schemes (CSS) with IAY. IAY
beneficiaries need to get benefits available under Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY), Total Sanitation Campaign (TSC), Janshree and
Aam Aadmi Bima Yojana and Differential Rate of Interest (DRI) Scheme etc.
The Indira Awaas Yojana is 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., Government of India and the
implementing agencies (States/UT Governments). The programme is also
reviewed at the meetings with the State Secretaries of Rural Development
and with the Project Directors of DRDAs in the workshops held every year.
Provision of Homestead Sites
A scheme has been 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. Rs. 10,000/- per homestead site is being provided
under the Scheme the funding of which is shared by the Centre and the
States in the ratio of 50:50.
The States are also incentivized by allocating additional physical
targets equal to the number of homestead sites provided by regularization of
purchase/acquisition of lands as the case may be.