1

CHAPTER 1

DESIGN OF THE STUDY

1.1 Introduction

Since time immemorial, India has been, still continues to be,

and will remain in the foreseeable future, a land of village

communities. As a matter of fact, the village was the basic unit of

development as far back as the Vedic age. Any strategy of

socio-economic development in India that neglects rural people and

rural areas cannot be successful. Hence after independence

especially after planning, efforts have been undertaken to reform the

rural condition.

The focus of Indian planning has been the improvement of

conditions in rural areas and thereby brings about a change in the

quality of life of its people. Towards this end, considerable amount

of resources has been spent on creating infrastructure and

employment opportunities for the unemployed. But the people in

rural areas continue to suffer from lack of basic needs and

purchasing power. The government in its efforts, has always played

the role of provider, people remained just the receiver of the dole

given by the government from time to time. But development cannot

be achieved without the involvement of people.

The problem, especially housing problem, is to be tackled by

the people themselves. The role should be changed from that of a

passive receiver of benefit to that of stakeholder in the development

2

process. They should have a say in the formulation and

implementation of the different projects, which reflect their needs

and aspirations. This can be done through the empowerment of the

people, generally, and particularly, rural people.

The 73rd Constitutional Amendment which became effective

from April 1993 has provided governance to be carried out by the

direct and active participation of the people and also provided local

level planning. The Gram Sabah, the base of three tiers Panchayat

Raj Institution, can be the best to create a mass base for local level

planning.

Kerala Panchayat Raj Act has evolved the Gram sabhas with

substantial powers and functions. As far as planning for rural areas

are concerned, Kerala has initiated People’s planning process. This

planning process starts at the grass roots with the maximum

involvement of masses. Mass participation is not limited to elected

representatives or voluntary agencies, but includes ordinary people

assembling in Gram Sabhas with non-official experts and volunteers

participating in preparing reports, formulating projects and drafting

plans.

People’s Plan has an important role in solving the housing

problem in India. Housing is not merely an amenity, but an essential

necessity for the healthy life of its community. In Kerala, based on

census figures, out of 18 lakh demand for houses, 25 percent

(4.5lakh) are required in urban areas and the remaining 75 percent

(13.5lakh) in rural areas (Poulose, 1986). This problem is more

serious since nearly 60 percent of the households in the state come

3

under the category of economically weaker sections, who cannot

normally afford to make this capital expenditure.

The dimension and problems of housing need to be viewed in

the overall environment of human settlements. Housing has been

primarily a self help activity. The housing policies and programmes,

while accepting that housing is essentially a private activity, has to

recognize that the state intervention is necessary to meet the housing

requirements of the vulnerable section and to create an enabling

environment in accomplishing the goals of ‘shelter for all ‘in a self

sustainable basis (Eleventh plan document,2007). Public housing

thrust is directed towards social housing to reach out housing

solution to priority groups. An equally important activity is to

provide a policy frame work and a legislative, fiscal and financial

system that would put into effect the enabling role of government in

stimulating, supporting and promoting other actors to play direct

roles in the housing delivery system.

One important solution to housing problem is the effective

implementation of Community Housing projects. The Community

House is the mortar that holds together the bricks of the community

–the only organization in the area that reaches out to the full

spectrum of people (Affordable Housing, 2009). Community house

is a nonprofit organization that delivers both quality recreation

programs and affordable social services that are deeply rooted in the

community. It makes a difference in the lives of thousands of

families and individuals that need local opportunities for athletics,

arts and culture, counseling, learning, building friendships and

4

community connection. Community House is a place where the

community can gather together and each person can find ways to

grow.

Community home is defined as a home provided by a local

authority for children who cannot remain with parents or relatives,

or be placed with foster parents (Community home –The free

dictionary).The project to deliver such houses is referred as

Community Housing Project. The aim of the project is to acquire

good quality housing in the private rented sector for people with low

support needs. Built on the principle of simplicity, community,

respect, empowerment and sustainability, the goal of the project is to

create an authentic community that offers a continuum of support for

the vulnerable people in our neighborhood. Fundamental to this

project is a vision of community life in which people share physical

space, material resources and life experiences together (Salsbury

Community Society).

In the Indian context, Community Housing Project is a

project or a scheme for ensuring affordable housing and shelter

services to all groups especially to the economically weaker sections

of the society and the marginalized. Affordable housing is the new

mantra of the Indian Government.

President Prathiba Patil mentioned it in her speech on Bharat

Nirman, a project that plans to double the construction of low-cost

houses to12million units (India Knowledge 2009). The Centre for

Good Governance (2003) evaluated the housing programmes of

Andhra Pradesh and revealed that the state of Andhra Pradesh is a

5

pioneer in India in implementing innovative housing programme for

the poor on a large scale. Though the Andhra Pradesh State Housing

Corporation Limited (APSHCL) was established in 1979 to

formulate, promote and execute housing schemes for the weaker

sections, the corporation has constructed about 3.62 million houses

by 31-03-2000, out of which 2.4 million are in rural areas. It ranked

first in the country in the implementation of housing for the poor in

rural areas from the year 1991-92 onwards. Households with an

annual income of Rs 13,000 or less are eligible for houses under

various schemes from 1996-97. 50percent of the houses are

earmarked for SC and ST, 33percent for backward castes, 7 percent

for minorities and the remaining 10 percent for the Economically

Weaker Sections. The funding of the housing programme includes

subsidy from the Government and loan from the financial institutions,

for the repayment of which the Government stands guarantee

irrespective of the ultimate recovery from beneficiaries. Loans are

mobilized from HUDCO, Life Insurance Corporation, General

Insurance Corporation and Commercial banks.

1.2 Statement of the Problem

Compared to the rest of the country, housing situation in

Kerala is better in quantitative and qualitative terms. But the housing

problem of very poor households remains unsolved. The demand for

Economically Weaker Sections (EWS) and Low Income Groups

(LIG) housings is proportionately much greater than that of Middle

Income Group (MIG) and High Income Group. The housing demand

of the EWS and LIG can be met through Community Housing

6

Projects (CHP). CHP like Indira Awas Yojana, EMS Housing Project

and M.N Laksham Veedu Punarnirmana ( MNLP) scheme are being

implemented in Thrissur District with the objective of enabling the

houseless Below Poverty Line (BPL) families to construct a new

house or reconstruct the dilapidated houses. Whether these projects

are really helping the marginalized sections of the community and

their efficacy have to be researched thoroughly. The present study is

an attempt towards this end.

1.3 Significance of the Study

Housing has been considered as a basic need of all human

beings. The necessity for shelter is a basic instinct of man, apart

from food and clothing. Going home after a hard day’s work is the

greatest pleasure of life. This is the place where you can put your

feet up or let your hair down, a space which is your own.

Housing has been universally recognized as a fundamental

human right of all persons. The global strategy for shelter for the

year 2000 (GSS 2000) adopted by the United Nations in November

1988 calls upon member countries to take suitable steps to ensure

better shelter for all, by the turn of the century as the Universal

Declaration of Human Rights and the International Covenant on

Economic, social and Cultural Rights recognizes the right to shelter

as a fundamental right of man (Misra and Rao 2000) India is a

signatory to these documents. Article II of the covenant

acknowledges “the right of every one to an adequate standard of

living for himself and his family including adequate food, clothing

and shelter’’. The Indian constitution has created a socialistic

7

republic and in several places repeats the right to social justice

including the right to life in its widest amplitude and the right to an

adequate means to livelihood plus opportunities and facilities for

children to develop in a healthy manner and in conditions of

freedom and dignity and interdiction of moral and material

abandonment. The foremost human right is indubitably the right to

life itself (Art.3).The Universal Declaration of Rights further

recognizes the dignity and worth of personhood. (Art.23). The right

to a reasonable standard of living includes ‘food, clothing, housing

and medical care’ (Art.25).

Housing has got immense social importance. The transformation

of the tradition–ridden, illiterate, conservative society in to a modern

scientific one is possible only by providing housing. A house is not

only a shelter to live in; it is much more than that. It is one of the

basic human entitlements which connect its occupant with the

society. The social quality of life is reflected to a large extent to the

state of its housing. House is essential for the healthy life of the

community. Housing conditions have direct impact not only on

social status but also on health conditions and values of the

population concerned.

Poor housing conditions are often connected with poor

sanitation, lack of facilities, which expose the inhabitants to several

health hazards, crimes and personal difficulties like unhappiness,

despair, misery, frustration and anger. According to Satyanarayanan

(1987), housing an element of material culture, is one such device to

overcome threats against physical elements or security to lives and

8

serves as an important purpose by making the provision of shelter. It

provides a place for the operation of many human activities

irrespective of place and time. It helps people to interact within the

family and also with the outside world.

From the micro point of view, housing is important as it provides

significant economic security and status to its owners. To a

shelterless person, a house brings about a profound change in his

existence, endowing him with an identity and integrating him with

his immediate milieu. In India, both the centre and state

Governments recognize the provision of shelter to people as a

productive activity essential for human resource development.

The National Housing Policy declares the importance of the

provision of shelter in the following words:” It improves the quality

of life of the poor; creates conditions for the attainment of better

health, hygiene and education; stimulates economic activity;

enhances productivity; creates employment opportunity; motivates

savings and promotes social justice”.

As cited in the Encyclopaedia (1966) home is a place where

people in general fulfill the basic domestic and personal functions of

family life. Physical and mental health, working efficiency,

emotional security and social status are all likely to be influenced by

housing conditions. Housing and household equipments are

normally a major item of consumer expenditure, often larger than

food; and the purchase of a house is likely to be the biggest single

financial commitment a family ever makes. A suitable home is vital

9

to the modern family but the average family cannot produce such a

home on its own initiative.

Table 1.1 (a)

Contribution of Housing to National Income (at 1993-94 prices. Rs crores)

Year

G.D.P of Dwelling G.D.P at Factor cost

% of total G.D.P

to G.D.P at

factor cost

Rural Urban Total

1993-94

18917 24590 43507 781345 5.6

1994-95 19270 25436 44706

917058 5.3

1995-96 19647 26311 45958

1073271 5.1

1996-97 20033 27219 47252

1243546 4.9

1997-98 20430 28155 48585

1390148 4.8

1998-99 20717 29123 49840

1598127 4.6

1999-00 21099 30127 51226

1761838 4.5

2000-01 21486 31164 52650

1902999 4.4

2001-02 21874 32238 54112

2081474 4.3

2002-03 22269 33344 55613

2254888 4.2

2003-04 22669 34489 57158

2519785 4.0

Source: Brochure on Housing Statistics.2007

10

Housing is also of direct significance to the community and to the

nation, apart from its importance to the individual family. The

largest single use for urban land is for residence and most of the

value of urban real estate is in residential property. Services for

home protection and convenience are a major item in the municipal

economy, while the neighbourhood social pattern created by housing

practice may be a dynamic factor in class and race relation.

Moreover, since each dwelling is a base point in the web of urban

activity, traffic and transportation are primarily a problem of

communication between homes and other facilities. Insanitary,

obsolete, ugly, overcrowded or inefficiently located residential

districts not only affect the lives of the occupants, but are also a

burden and a threat to the rest of the community.

All over the world, housing is regarded as a means of long

term accumulation and financial security. House ownership which is

a matter of personal accomplishment can be the primary sources of

wealth for the people belonging to lower income and middle income

groups.

Housing contributes to national income. Housing and Gross

Domestic Product have strong inter-linkages and complement each

other’s growth especially in the emerging economies like India. Data

available for a number of years show that income from housing

accounts for around 3.5percent of the G.D.P of India (Francis and

Odeyar 1987) However the contribution of housing to states G.D.P

varies widely between the states. It is comparatively high in states

like Tamil Nadu, West Bengal and Uttar Pradesh but very low in

11

states like Orissa, Assam and Manipur. The table1.1 (a) and1.1 (b)

shows the contribution of housing to National Income.

As per the Central Statistical Organization’s estimate, the

contribution of real estate, ownership of dwellings and business

services to the GDP at factor cost of the country was 9.19 %, of

which dwellings contributed 45.60% and real estate contributed

3.16% during the year 2008-09 as shown in the table 1.1 (b). The

contribution of Real estate, ownership of dwellings and Business is

on the rise over the past five years.

Table 1.1 (b)

Contribution of Housing and Housing Finance to G.D.P (at factor cost) (In percentage)

Year

Contribution of Real estate, ownership of

Dwellings and business Services

Of which dwellings

accounts for

Of which Real estate

accounts for

2004-05 8.92 57. 68 1.79

2005-06 9.03 53.75 2.05

2006-07 9.05 50.27 2.35

2007-08 9.16 47.09 2.71

2008-09 9.19 45.60 3.16

Source: www.nhb.org.in/publications/p. (National Housing Bank Publications

2009)

12

Table1.2 (a)

Capital Formation in Housing (at 1993-94 prices)

Year

Gross Fixed Capital Formation

Tota

l Gro

ss D

omes

tic C

apita

l Fo

rmat

ion

Tota

l Dom

estic

Pro

duct

at

Fac

tor C

ost

Private Public R

esid

entia

l

Non

resi

dent

ial

Res

iden

tial

Non

re

side

ntia

l

1993-94 19381 13179 1066 6608 198412 781345

1994-95 20191 14431 1175 7198 243882 838031

1995-96 20925 17005 1162 7844 271015 899563

1996-97 22828 17734 1250 7789 268435 970083

1997-98 24297 23691 1192 7722 289058 1016595

1998-99 25060 24315 1269 8743 290971 1082747

1999-2000 24213 26353 1460 8963 351624 1148367

2000-01 25886 27949 979 7766 346682 1198592

2001-02 26195 32064 871 8612 336486 1267945

2002-03 26948 33458 1010 7973 395163 1318362

2003-04 26545 36124 1545 10165 449539 1430548

Source: Brochure on Housing Statistics 2007.

13

“Currently about 5% of India’s GDP is contributed by the

housing sector with the institutional credit for housing investment

growing at a CAGR (compound Annual Growth Rate) of about

18-20% per annum in the next three-five years, the housing sectors

contribution to GDP is likely to increase 6%’’ the Economic Survey

said today (SME News 2012). High lighting the importance of

housing sector, the survey said for every rupee that is invested in

housing and construction, Rs0.78 get added to G.D.P. According to

economic Survey, investment in housing and real estate activities can

be considered a barometer of growth of the entire economy .

Experience indicates that the desire to buy or upgrade a home

is one of the most potential stimulants of consumer saving, since

expanded saving is a crucial condition for alleviating the chronic

capital shortage of less developed countries. To the extent, savings

generated by anticipation of home purchases represent the net

addition to the total funds available for investment; they help to

reduce current consumption.

Another important aspect of housing is its share in the capital

formation. Gross Capital Formation in housing (residential building

only) accounted to 13.4%, 14.4% and 12.8% of gross domestic

capital formation during 1970-71, 77-78 and 78-79 respectively.

Capital formation in housing is clearly depicted in the table 1.2 (a)

and 1.2 (b).

In terms of the Gross Capital Formation, the share of Real

Estate, Ownership of Dwellings and Business Services is reflecting a

14

northward trend over the last two years after having a slight decline

during 2004-05 to 2008-09 as shown in the table 1.2 (b).

Table 1.2 (b)

Contribution of Real Estate, Ownership of Dwellings and

Business Services to Gross Capital Formation (at 2004-05 prices)

(in percentages)

Year Contribution Growth (over the last year)

2004-05 15.15 ---

2005-06 13.63 4.39

2006-07 11.70 -0.41

2007-08 11.96 17.80

2008-09 13.73 12.04

Source : http:// www.nhb.org.in/publications/p. (National Housing

Bank Publications 2009)

In India, housing is the second largest employment generating

sector.Constructon sector provides direct employment to 16 percent

of the country’s workforce, which is growing at a rate of 7 percent

per annum. The housing sector alone accounts for 58percent of

workers in the construction sector and nearly 55percent of these

workers are in the unskilled category (Divya 2009). According to an

estimate, every rupees one crore (at1988-89 prices) worth of

investment in the housing sector has the potential of

15

generating1086.75 man years of employment ( Sharma 1996) Thus

housing forms an important part of the strategy for the alleviation of

poverty and unemployment especially in the context of recession

and slowing down of economic activity. It can be viewed as an

integral part of overall improvement of human settlement and

economic developmentIt is said that if the economy grows at 10

percent, then the housing sector would grow at 14 percent and

generate jobs at the rate of 3.2 billion a decade (Keerti

mallela,2009).

In Kerala, housing is the leading sector by way of

employment and income generation for a large number of people of

varying skill levels. It is estimated that overall employment

generation in the economy due to investment in housing/construction

is eight times the direct employment.

Housing construction facilitates the development of other

industries, with many forward and backward linkages and about 250

industries are directly or indirectly related to housing industries

(Manoj 2009).Industries like cement, steel, timber, bricks, furnishings

and consumer durables are a few examples.

Each house needs some components of infrastructure like internal

roads, drains, drinking water supply and other common facilities.

Thus housing schemes will indirectly lead to infrastructure

development.

Expansion of residential construction in less developed

countries is widely believed to be inflationary or at least to stimulate

16

higher price increase than most other investments. The relationship

between housing investment and price requires some theoretical

clarification. An increase in the demand for any good will not only

affect the price of that good but also the prices of goods and services

to which it is linked through derived demand. The extent of the price

effect will depend on the source of financing which stimulated the

demand increase and on the tightness of the linkages between the

final demand sector and the intermediate supply factors. With

expenditure budgets of economic units fixed in the short run, the

increase in housing demand must be offset by decreases in the

demand for other non-housing goods. The expansion of building may

generate increased imports of construction materials and equipments,

but trade flows of non-housing goods are not necessarily changed or

their change is intermediate (Burns and Grebier 1977).

The economic importance of housing calls for a cautious

policy framework. Suitable policies are to be framed for solving the

problem of housing due to the following factors. One of the major

problems all over the world today is housing. It is a matter of great

surprise that about 25 lakh people spend their night in an open stay

in developed countries and about 50 percent of population of

developing countries is homeless ( Krishna 1999). In India, about 73

percent of rural population lives in unsatisfactory Kutcha

(unbricked) structures (Padmini 1990) Even in Kerala, where social

sectors had developed much faster than the economic sectors, the

supply of houses has not kept pace with the growing demand. Hence

the study of housing projects is of paramount importance to policy

makers.

17

1.4 Relevance of Study

From the review of literature it is clear that a few attempts

have been made to analyze the community housing projects in

Kerala especially Indira Awas Yojana So this study seems to be

relevant to fill the research gap. A study on the evaluation of

Community Housing Project enables to find out the efficacy of the

projects.

1.5 Objectives of Study

This study has three objectives: 1. To examine the nature, type and extent of community housing

projects in Thrissur District

2. To examine the socio-economic background of beneficiaries of

the scheme

3. To examine the efficacy of the community housing projects.

1.6 Data base and Methodology

1.6.1 Data Sources

The study makes use of both primary and secondary data.

Primary data were collected with the help of pre-tested structured

schedules. Data were collected directly from the beneficiaries of

selected Panchayat. Primary data were also collected from the

officials mainly from the Village Extension Officers (VEOs) of

these Panchayat.

18

Secondary data were collected from Economic Reviews,

Information from Kerala State Housing Board (KSHB), Department

of Economics and Statistics,StatePlanning Board, reports of Deputy

Director of Panchayat (DDP), District Rural Development Agency

(DRDA) block and Panchayat offices of selected areas are also used.

1.6.2 Sample Selection:-

The data base of the study represents a sample of 300

beneficiaries of EMS housing project, Indira Awas Yojana and MN

Laksham veedu Punarnirma padhathi of Thrissur District.(75

beneficiaries from EMS Scheme, 75 from MNLP scheme and 150

beneficiaries from IAY scheme). Samples are selected from four

Panchayats namely Mullurkkara Panchayat of Vadakkancherry

blocks, Thrikkur, Pudukkad and Mattathur Panchayats of Kodakkara

Block. Surveys are conducted using a structured questionnaire

prepared on the basis of objectives. The original version of the

questionnaire is presented in the Appendix.1.There are 12 main

questions consisting of 53 sub questions. Other than the specific

questions regarding their personal details and details on housing,

most of the questions are with multiple answers.

1.6.3 Methodology

Methodology adopted is mainly descriptive in nature. Tools

like mean and standard deviations are used to analyze the objectives.

Mapping, Participatory Rural Appraisal (PRA) technique, statistical

tools like anova, percentage and photographs are also used to

evaluate the community housing projects.

19

1.7 Limitations

The study suffered from some limitations, which narrowed

down the scope of a very detailed analysis on certain occasions.

• Since the study makes use of both primary and secondary

data, it poses a variety of data problems. Most of the

beneficiaries did not keep records regarding their physical and

financial contribution towards the construction of their houses.

Hence difficulty was experienced in getting required data for

analysis.

• Difficulty is also felt due to reporting errors

• IAY Scheme was initiated 16 years back but the other two

schemes (EMS and MNLP Scheme) under study were started

only in 2008. So there is some limitation with regard to period

wise comparison.

1.8 Scheme of the Study

The text of the thesis is discussed in nine chapters, which are

outlined as follows:

The thesis opens with an introduction in which the problem to

be investigated is briefly stated. It also covers significance,

relevance of study, objectives, limitations and scheme of the study.

Methodologies used for the study are also given in this chapter.

Review of literature of the studies is included in the second

chapter to identify the research gap.

20

The third chapter discusses the housing problem in global ;

developed countries and developing countries especially in India.

The reasons for homelessness in European countries, in U.S.A, U.K

and India are enquired in to.

Chapter four gives a brief account of the housing problem in

Kerala and the housing schemes under the five year plans. It brings

out the outlay and expenditure on housing during the five year plans

in Kerala.

The nature of Community Housing Projects in Kerala under

People’s plan is presented in the chapter five. The meaning of

People’s plan, its features, stages and housing sector and the

people’s plan are studied elaborately. It also brings out the different

types of Community Housing Schemes in Kerala.

Chapter six presents the nature, type and extent of Community

Housing Schemes in Thrissur District. This attempt is based on the

data collected from the block Panchayats and Gram Panchayats of

selected areas.

The socio–economic background of the beneficiaries are

examined with the help of the anova method, standard deviation and

averages which is covered in the seventh chapter.

The third objective of the study is to examine the efficacy of

the Community Housing Scheme in the Thrissur District, which is

covered in the eighth chapter.

21

The conclusions emerged from the study, findings and a few

suggestions are listed in the final chapter.

References

Centre for Good Governance (2003). Working paper 4 Housing for the Poor. http://www.cgg.gov.in. Community home- The free dictionary. http://www.the freedictionary.com/ community+. com/community+ home in Britain Divya H (2009)“Housing Finance Sector in India –Growth pattern, challenges and Future Strategies’’ CUSAT Eleventh Five Year Plan Document (2009)http://planning commission.nic.in/plans/plan rel/.. Encyclopaedia Britannica (1996) I.N.C.vol.11 Francis Cherunilam and Odeyar D.Heggade (1987) “Housing in India. Himalaya publishing House. Bombay Girish K.Misra and P.S.N Rao (2000) “ Housing Legislation in India –Policies and Performance” Kaniska Publishers . New Deli Hare Krishna (1999) “Rural Housing and Indira Awas Yojana” kurukshetra,Volume 47. pp30 India Knowldege (2009) Affordable Housing-An Idea Whose Time Has Come http://knowldge whartton.upenn-edu/india/ article Keerthi mallela (2009) The Housing Construction Sector in India- Growth, Development and Outlook. Voices.yahoo.com/the –housing-construction -sector-india-growthdevelopment 2591878. html Leiand S. Burns and Leo. Grebier (1977)The Housing of Nations-analysis and policy in a comparative Framework. Macmillian press.New Delhi Manoj P.K (2009). “Emerging Technologies and Financing Models for Affordable Housing in India”Directorate of public relations and publicators CUSAT.Cochin. Padmini E.V.K (1990) “ Housing problem-Various schemes of Kerala “Southern Economist, Vol 29,pp25.

22

Salsbury Community Society. co.Here CommunityHousingProject. Overview www.salsburycommunity society.ca/cohere/community housing. Satyanarayanan C.P. (1987) Housing rural poor and their living conditions. Gian publishing House Delhi pp15 Sharma K.S (1996). “Housing for the masses”. yojana. vol.40 p.8. SME News (2012) Contribution of housing sector to G.D.P. news. india mart.com Thomas poulose K (1986) Housing in Kerala-problems and programmes. Data base of Kerala Economy pp 191