India as a democracy has different incomes groups and it would be a gross understatement to say that there is a varied amount of gap between each of them. The distribution of income lacks parity and hence it is obvious to observe uneven patterns of development. However one common phenomenon spreading in the most regular fashion is inception of the affordable housing projects Pan India.

The mainstream settlement experienced a paradigm shift from rural to urban areas in the last decade which consequently caused the cities to become congested and cluttered. The mass migration aggravated the urban congestion that magnified the density. This not only led to an acute shortage of homes but also of basic amenities as water and sanitation. At the national level, the government estimated a shortage of more than 18.78 million homes at the beginning of 2012, of which 95% were in the EWS (Economically Weaker Sections) and LIG (Low Income Group) segments. Further, the country’s total urban housing shortage is projected to be about 30 million by 2022 and hence the Government of India has taken an initiative to provide homes to all of its citizens by 2022. In collaboration with the developers and in association with the public-private partnerships, Indian Government is developing these units.

Under an affordable housing scheme a relatively smaller unit of house is build and leased at a lower than market price to an individual belonging to the low income group and economically weaker sections of the society. The major cause of this strata of population becoming a part of LIG or EWS is the mass migration. The rapidly increasing urban population has led to an increased demand for homes, with decreased paying capacity. Under the Pradhan Mantri Awas Yojna, 2014, housing for all (Urban) is envisioned by 2022. The primary objective is to provide a pucca house to the migrants and city dwellers who reside in slum rehabilitations.
The six-step ecosystem involves the following:

1. Identification and acquisition of land for development of housing units
   2. Paperwork and clearances
   3. Designing the framework
   4. Project allocation and execution
   5. Ascertaining the beneficiaries
   6. Possession, development and maintenance

With the government promoting a healthy collaboration between the central government ministries, state governments, urban local bodies, civil society, private sector, and financial institutions, the journey to build a successful affordable housing scheme seems easier. The last decade has experienced exponential growth in terms of development of housing units and the government can be accredited for this achievement. Some of the major steps taken recently by the Indian Government are mentioned below.

1. Credit Subsidy Relaxation – In the recent presentation of the Union budget (2018-19), the finance minister Arun Jaitley, announced a spectacular hike to Rs 10 billion in allocation for EWS and LIG housing facility. This scheme is available for first-time home buyers. In the EWS and LIG categories, beneficiaries can have an annual income of up to Rs 600,000. The beneficiaries are eligible for a maximum subsidy of 6.5 percent interest subvention. In simple terms it means some percentage of waiver on the interest rates (on loan) to the economically weaker sections.
2. Promotion of Foreign Direct Investment – In order to enable cost benefits and capital availability to the developers, the government has sanctioned 100% FDI in this sector. This is to promote large township construction by real estate developers in collaboration with foreign agencies.

The sole aim to make the permanent houses available within an affordable range of Rs 5-15 lacs. However the road ahead is challenging since the macro level factors are restricting the effective and efficient execution of the projects.
Some major challenges that are critical to the success are mentioned below:

1. Compliances and sanctions from the authorities are a challenge to overcome since it requires a minimum of 20-30 clearances needed for one housing project from several authorities.
2. The second major challenge is to allot the units fairly among the beneficiaries. The identification and allotment takes lot of time and effort in the hands of the government agencies.
3. Another problem with the current projects in this arena is the maintenance mechanism. Post the transfer of the ownership to the beneficiaries the housing development authorities do not take any responsibility of the maintenance of the properties. Despite the townships falling under the ambit of management, hardly any checks are maintained for their internal development.

The benefits associated with such projects have outnumbered the pitfalls and hence the affordable housing projects are rapidly entering the mainstream real estate industry. It is catering to the long term needs of the EWS and LIG segment. The government seems to be promising in the discharge of its responsibilities and given the current scenario, the vision of “Home, for all” by 2022 will be achieved in reality.