1. WELCOMES DIGNITORIES & DELEGATES OF CONFERENCE ON AFFORDABLE HOUSING & HOUSING FINANCE JANUARY 27-28, 2010 2.

1

WELCOMES

DIGNITORIES & DELEGATES

OF

CONFERENCE

ON

AFFORDABLE HOUSING & HOUSING

FINANCE JANUARY 27-28, 2010

2

Urban Areas – Housing

122 Urban Areas in the State

– Population : 10.06 M (27.08%)

– Shortage : 0.95 M

Housing – position

• Several subsidized housing schemes benefitting urban poor

• Rich face no problems in getting choice houses

• Moderate income group relegated to the back position - could not afford a decent house / flat with minimum facilities and basic infrastructure.

Urban Housing – Market - Impact

Land cost increased manifoldLeft to marketLimited supplyAbnormal CostsAffordability sacrificedInability of Moderate income group to

buy

Emergence of Rajiv Swagruha

Rajiv Swagruha - Objective

“Every person with moderate income, having no house of his / her own, must have a house , i.e. an affordable decent house”.

Dr. K. Rosaiah Hon’ble Chief Minister

Andhra Pradesh

6

Affordable Housing

“Affordable housing is not about box sized budget homes in far flung places where there is no connectivity to work places and little surrounding infrastructure”

Deepak Parekh Chairman, HDFC

7

Rajiv Swagruha -Philosophy

• Affordable Housing has to cut across all income segments of the society and has to make economic sense – inclusive / complementary housing

• An affordable house does not mean a cheap house or any compromise on space, quality or facilities as required by the family

8

Rajiv Swagruha -Philosophy

• Demand of affordable quality homes is in the price range of Rs.15 – 30 lakhs. Rajiv Swagruha range Rs.6.30 – Rs.33 lakhs

• Swagruha - necessacity for many, opportunity for few and growth engine for Government

9

Rajiv Swagruha -Philosophy

In lieu of subsidy and budgetary support from the Government - focus is on appropriateness, value addition and optimization of space in designs and layouts, quality construction in accordance with codes, with all necessary infrastructure and facilities, on schedule delivery of final product and limiting the cost - 25% less than the market – thus creating a brand – • Premium lifestyle at affordable cost

Rajiv Swagruha – Features

• Demand driven • Self Financed • No subsidy• No budgetary support• Affordable• Four sizes of flats / Houses• All Infrastructure and facilities • No profit - No loss basis• Cost 25% less than the local market• Covering the income up to Rs.50000 pm

11

Demand Survey –Analysis

March – April 2007Sl.No

Area Civic400/ 523 Sft

Basic685 / 813 Sft

Intrinsic1150 Sft

Classic1450 – 1470 Sft

Total Appl. recd

1 Municipal Corporations

13700

21437

14815 9270 59222

2 Municipalities

37117

45559

22014 10836

115526

3 Municipalities (<100)

613 489 179 47 1328

Total 51430

67485

37008 20153

176076

Demand Analysis

0

10000

20000

30000

40000

50000

60000

70000

A B C D

Corporations

Municipalities

Total

38.34%

29.08%

21.08%

11.50%

Project - Spread

Rajiv Swagruha : 0.175 M (18.42%)

Coverage : 23 DISTRICTS 122 MUNICIPAL AREAS

(Corporations, 2-tier and 3-tier)

15

Scheme details

Net Demand : 1,76,076

Project cost : Rs.35,000 Crs

Proposed plinth Area : 139.17 M Sft

APRSCL- Organogram

ENC & ED

Dir PlgDir HR

SR GM Tech

Sr GM P & E 1

Gm Lands

Sr GM Q & V

24 Field divisions with support engineers and Project Coordinators

Dir F & B Dir Mkt & PR

Board

CMD

Dir Tech

GM Designs

GM Estate

Sr Gm Mkt

Land Bank

• Required 12,864 acres• Identified 8,329 acres• Possession taken 5,732 acres • Cost of lands Rs. 6102 Crores

Project Planning• Strategically located Contiguous area • Thematic Townships• Self contained gated Community • Creating land marks• Vaastu compliant (light & Ventilation)• Units open to sky on three sides• Harith Varna (Corridor plantation)• Furnished unitsWalk in with suit case and start living

• Pattern of construction

20

Specifications• Green Buildings and energy saving

Norms

• Designs for earthquake

• NBC & Other BIS codes are followed

• VRCC : Framed Structure

• Masonry : Fly ash blocks

21

Specifications

• Plastering : Inside Lappam finish /

Dubara Outside

• Flooring : Ceramic tiles Kajaria /

Johnson

• Windows : Pre-painted steel windows with fly

proof mesh

22

Specifications

• Ventilators : Fixed Louvers

• Doors : Main door teak frame and Rubber wood shutter, others CRCA Frames ply wood shutters

• Kitchen : Granite top with Steel sink (Nirali)

• Toilet fittings : bathroomfittings of Jaguar make

23

Specifications

• Cupboards : RCC shelves with ply wood cover

• Dadoo : Glazed tiles up to lintel level in bathrooms and Kitchen

• Electrical : Concealed cables, Quality fittings, Provision for internet, TV & telephone

Infrastructure• Fire fighting• Two lifts – passenger & cargo• Generator Back up• Municipal water supply• Underground drainage & STP• Cabled electricity, telephone, internet• Storm water drains with recharge pits• Paved driveways

Hassle free life

Premium lifestyle at affordable cost

Facilities - Charged

• Piped gas supply• Solar water heater• Solar street lighting• Land scaped parks and tot lots• Playgrounds• Parking

Premier lifestyle at affordable cost• facilities – not charged

•Club House • Shopping complex• Multiplexes• Amphitheatre• School• Bank & ATM• Post office etc

Quality Assurance• Site labs - material testing and records

the results• Quality & Vigilance wing checks at

every stage• Surprise checks by ENC & CMD• Third party quality checks - CIVIL AID /

IITs• Applicants encouraged to give feed back

on quality

Fast & Cost Effective Technology

• M/s Shirke construction technology using Siporex light weight blocks and prefabricated technology – ABHIMAN Jawaharnagar - Cost Rs.1100 Crs

• Aluminum formwork technology by L & T – Manabhavana- Bachupalli – Cost Rs.760 Crs

Eligibility

• Per month income up to Rs. 50000

• Born in AP working any part of the world

• 5% for other Indians (Project specific)

• No House affidavit

New Applications

www.rajivswagruhaap.gov.in

Costing

• Project specific tentative cost • 25% less than the local market• Inclusive of construction, development, land

value, and all taxes and fee etc • No hidden / extra costs – unlike private

market• Cost ranges from Rs.1641/Sft to Rs.2500/ Sft

Financing pattern • Self financed

• Booking advance : 15%

• Within one month : 10%

• Balance schedule of payment : 75% – in 4 bullets• 40% : grounding• 25% : basement level• 25% : roof level• 10% : completion

APRSCL – Role of facilitator

• 19 Banks committed to provide home loans for 35 projects costing Rs. 13000 Crs• Concessional rate of interest • No processing fee• Free Life Insurance• Single window clearance• Flexi EMI 33

Project Status

Project Status

Sl. No

Item Description No of Units

Amount in Crs

1 Projects prepared 85961 17888

2 Bids awarded 53316 9366

3 Works Grounded 49353 8742

PRASHANTHI ENCLAVE – ANOTHER INNOVATION - SENIOR CITIZEN HOUSING

“You matter because you are you and we will do all that we can do to help you live peacefully with affection and dignity “

APRSCL

36

Prashanthi Enclave – Senior Citizen Housing

– A person 58 years and above– 640 Sft +– Specially customized flats with anti skid tiles,

spacious corridors with grab bars, panic call button, etc

– Common facilities like kitchen, common dining, recreation room, clinic, Gym, Home theater, library, Guest accommodation, etc

– Attachment with nearby super specialty hospital– Laundromat, House keeping, round the clock

security and other services by an agency37

Kurnool Town – Reconstruction

• A, B, C Camps consisting of 248 acres to be remodeled

–Master plan is ready

– Implementation proposed in phases

Concerns

• Land, technology and knowledge is clubbed with long term finance ensures sustainable, holistic programme

• Home loans up to Rs.20 lakhs – priority sector lending but loan to Construction company is treated as reality sector

• Lower interest rates are key to affordable housing

Concerns

• Enabling environment through incentives and concessions may go a long way

• Self financed scheme is a new concept – It is taking time for proper understanding – till then momentum has to pick up showing physical progress – need for bridge funding / project finance at lesser rate of interest and education to buyer – to develop ownership

Concerns

• Both goals and approach needs to be realistic

• Multi players are to be welcomed for bringing balance and choice

RAJIV SWAGRUHA a humble beginning …

THANK YOU