3 Policies in India & Maharashtra · 3.1 Urban policies in India and Maharashtra
3.1.1 National Urban Housing and Habitat Policy 2007
The National Urban Housing and Habitat Policy, 2007 set the goal of "Affordable Housing for All" in cities, cast the government as a facilitator working through public–private partnerships, and asked that every new housing project set aside land or FSI for EWS and LIG families.
- MPSC ATP
- Standard level
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Core facts
- Name: National Urban Housing and Habitat Policy (NUHHP), 2007.
- Ministry: Ministry of Housing and Urban Poverty Alleviation (MoHUPA).
- Goal: "Affordable Housing for All", with special emphasis on vulnerable groups: SC, ST, backward classes, minorities, women-headed households and the urban poor.
- Role of government: facilitator and enabler, not the main builder.
- Delivery model: multi-stakeholder Public-Private Partnerships (PPP) with States, ULBs, the private sector, cooperatives and NGOs.
- Approach: a Regional Planning approach, treating rural and urban areas as a continuum.
- EWS/LIG reservation: in every new public or private housing project, 10–15% of land or 20–25% of FAR/FSI, whichever is greater.
- Urban housing shortage at the end of the 10th Plan (2007): about 24.71 million units, about 99% in EWS and LIG.
- Predecessors: National Housing Policy 1994; National Housing and Habitat Policy 1998 (which covered both urban and rural).
- NUHHP 2007 was the first policy only for urban housing and habitat.
Explained
Why the 2007 policy was made
- Rapid urban growth, a large shortage in EWS/LIG housing, and growth of slums.
- The 1998 policy covered both rural and urban areas; urban problems needed their own framework, linked to JNNURM (2005).
Main policy directions
| Area | What the policy says |
|---|---|
| Land | Increase supply of serviced land; use land as a resource; relax FAR/FSI and use TDR for affordable housing |
| Planning | Prepare Master Plans and City Development Plans with a long (15–20 year) perspective; regional plans for city regions |
| Reservation | 10–15% land or 20–25% FAR, whichever is greater, for EWS/LIG in all new projects |
| Finance | Expand housing finance to the poor; micro-finance; fiscal concessions for affordable housing |
| Slums | In-situ upgrading where possible, relocation only where necessary |
| Rental | Promote rental housing, including for migrants |
| Environment | Green and energy-efficient buildings, rainwater harvesting, eco-friendly technology |
| Process | Single-window approvals, simplified building bye-laws, computerised land records |
Roles assigned
- Central Government: policy, finance, research and technology, and support to States.
- State Governments: prepare a State Urban Housing and Habitat Policy and a State Habitat Plan; reform land and rent laws.
- ULBs and Development Authorities: prepare plans, earmark land for the poor, provide services.
- Private and cooperative sector: build housing and infrastructure in partnership.
Special groups
- Women: houses in the name of the woman or jointly; working women's hostels and shelters.
- SC/ST/OBC, minorities, persons with disabilities, the elderly and street children.
Common traps
- ✗ "NUHHP 2007 makes the government the main builder of urban houses." ✓ The government is a facilitator; delivery is through PPP.
- ✗ "The EWS/LIG reservation is 20–25% of land or 10–15% of FAR." ✓ It is 10–15% of land or 20–25% of FAR/FSI, whichever is greater.
- ✗ "The National Housing and Habitat Policy 1998 was urban-only." ✓ NUHHP 2007 was the first urban-only policy; 1998 covered urban and rural.
- ✗ "The shortage in NUHHP 2007 was 18.78 million." ✓ NUHHP used 24.71 million (end of 10th Plan); 18.78 million is the 2012 estimate.
- ✗ "UDCPR inclusive housing applies to all Municipal Councils." ✓ Reg. 3.8 applies to Municipal Corporations with population of 10 lakh or more, on land of 4,000 sq m or more.
Quick revision
- NUHHP 2007, MoHUPA.
- Goal: Affordable Housing for All, focus on vulnerable groups.
- Government as facilitator; multi-stakeholder PPP.
- Regional planning approach; rural–urban continuum.
- EWS/LIG: 10–15% land or 20–25% FAR, whichever greater.
- Shortage: 24.71 million (2007), about 99% EWS/LIG.
- Earlier: NHP 1994, NHHP 1998.
- States to prepare State Urban Housing and Habitat Policies.
- UDCPR 3.8: 20% for EWS/LIG on 4,000 sq m+ in 10 lakh+ corporations.
Go deeper: Deeper, Mains writing (beyond what MPSC ATP usually asks)
Deeper Advanced
- From provider to enabler. The 1994 and 1998 policies had already moved away from direct government construction. NUHHP 2007 went further: housing is mainly a market product, and the State's job is to make land, finance and approvals available, and to target subsidy to the poor.
- Inclusionary zoning in practice. The "10–15% land or 20–25% FAR" rule is a form of inclusionary zoning. In Maharashtra, it appears in a different form in the UDCPR:
- Regulation 3.8 (Inclusive Housing) applies in Municipal Corporations with population of 10 lakh or more.
- For layouts or group housing on land of 4,000 sq m or more, 20% of plot area or of basic FSI is for EWS/LIG, as plots or tenements of 30–50 sq m (carpet area for tenements).
- The EWS/LIG built-up area is over and above the permissible FSI. Since a s.154 directive dated 12.08.2026 (pending final sanction), the plots and tenements are handed to the Planning Authority for its Affordable Housing stock, against TDR; MHADA no longer allots them.
- Regional planning approach. The policy recognised that city housing demand spills into peri-urban villages, so housing has to be planned at the scale of the region (for example, the Mumbai Metropolitan Region).
- Housing shortage numbers. The 24.71 million figure (TG-11) was later revised to 18.78 million for 2012 (TG-12), which became the base for PMAY-U.
Mains writing Mains writing
- Frame: NUHHP 2007 is the bridge between the old welfare approach to housing and the market-enabling, partnership-led approach of JNNURM and PMAY-U.
- Analysis points:
- Its inclusionary reservation was adopted by only some States, and often weakly enforced.
- Without cheap serviced land, PPP projects moved to the periphery.
- Rental housing, though mentioned, received little support until 2020.
- Its integration of housing with habitat (services, transport, environment) remains its strongest idea.
- Way forward: enforce inclusionary zoning through DCRs, link affordable housing to transit (TOD), and build rental housing for migrants.
- Example: Maharashtra's UDCPR Reg. 3.8 operationalises inclusionary housing for large cities; the units now go to the Planning Authority's Affordable Housing stock (2026 directive).
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