Sgsy Guidelines

GUIDELINES
Credit cum Subsidy Scheme for Rural Housing

Introduction:

There are a large number of households (below the poverty line and above it) in the rural areas, who could not be covered under Indira Awaas Yojana, as either they do not fall within the range of eligibility or due to the limits imposed by the available budget. On the other hand, due to limited repayment capacity, these rural households cannot take benefit of fully loan based schemes offered by some of the housing finance institutions. The needs of this large majority can be met through a scheme which is part credit and part subsidy based. The introduction of a part credit, part subsidy based scheme will be an important step in the direction of redefining the role of the Government from that of a ‘provider’ to a ‘facilitator’ as envisaged in the National Housing and Habitat Policy 1998.

Target Group:

The target group under the Credit cum Subsidy Scheme will be rural households having an annual income of upto Rs 32000/- only. However, Below Poverty Line Rural Households shall be given preference. At least a minimum of 60% of the funds allocated under this Scheme as subsidy to each State, shall be utilized in financing the construction of Scheduled Castes, Scheduled Tribes and freed bonded labourers.

Target Area:

The State may independently decide as to whether it desires to implement this Scheme throughout the State or within a few districts/blocks. The target areas that can be taken up under the Credit cum Subsidy Scheme should be solely the rural areas and atleast 20 kms away from metropolitan and large towns and 5 kms. away from the small and medium towns.

Identification of Beneficiaries:

Identification of beneficiaries under the Credit cum Subsidy Scheme and the modus operandi to be adopted is the sole prerogative of the States.

Implementation Agency:

The Implementation Agency for the Credit cum Subsidy Scheme for Rural Housing may be the State Housing Board, State Housing Corporation, specified Scheduled Commercial Bank, Housing Finance Institution or the DRDA/ ZPs. The identification of the most appropriate implementation agency under the Credit cum Subsidy Scheme shall be left to the State Government.

Criteria of Allocation:

The subsidy element of the Credit cum Subsidy Scheme will be shared on 75:25 basis between the Centre and the States. The criteria of allocation of funds under the Credit cum Subsidy Scheme to the States shall be both poverty ratio as determined by the Planning Commission and the housing shortage. The proportion of the two variables shall be 50:50. The allocation of funds within the State can be decided by the respective State Governments. It shall be the sole prerogative of the State Government to specify inter district targets, once the state target has been communicated by the Ministry of Rural Development

Upper Limit of Construction Assistance Subsidy/Loan

The upper limit of construction loan ceiling of subsidy that can be given under this Scheme is Rs admissible under this Scheme will be Rs 40000/- per household. The State Government is free to identify the agency from whom the loan will be sourced and disbursed. This may be from either a Scheduled Commercial Bank, Housing Finance Institution or the State Government directly.

Monitoring

Overall monitoring of this scheme will be the responsibility of the Ministry of Rural Development. The following reports and returns should be submitted by the State Governments under this Scheme to the Ministry
? A monthly progress report to be furnished as in Proforma 1 on or before the 10th of the succeeding month
? A detailed annual progress report to be furnished as in Proforma II on or before 25th April of the following financial year.

Release of Central Assistance to State Governments:

(i) Central Assistance to the tune of 75% under the Credit cum Subsidy Scheme shall be remitted to the State Governments directly in case the State identifies the State Housing Board, State Rural Housing Corporation or a specified Scheduled Commercial Bank as its implementing agency. In case the State wishes to implement this Scheme through its DRDAs/ZPs, the funds shall be disbursed directly to the DRDAs identified by the State under intimation to the State. Matching grant by the State Government of 25% should be contributed within 15 days of the receipt of the Central allocation.
(ii) The Central allocation of the State shall be released in two instalments. However the release of the second instalment shall be contingent on the submission of the following as specified in Proforma III:
? Utilization Certificate by the implementing agency
? Audit Report for the previous year by the implementing agency
? Non embezzlement certificate
? Progress and monitoring reports
? Release of state contribution
? Opening balance of not more than 20% of the allocation of the previous year. In case the opening balance exceeds this limit, the central share in excess will be deducted at the time of the release of the next year’s instalment.
? Any other condition imposed from time to time will also have to be complied with.
(iii) The interest amount accrued on Credit cum Subsidy funds shall be treated as part of the Credit cum Subsidy resources.
(iv) The Credit cum Subsidy funds (Central and State) shall be kept in a nationalized, scheduled commercial bank or Post Office in an exclusive and separate savings bank account by the State Government.

General:

The Indira Awaas Yojana guidelines pertaining to sanitary latrines, improved chulhas, use of cost effective and environment friendly designs, materials and technologies shall apply mutatis mutandis to the Credit cum Subsidy Scheme for Rural Housing.

Proforma I

Credit Cum Subsidy Scheme
Monthly Performance

State/ UT
Agency(ies) Implementing Credit cum Subsidy Scheme
Districts where the Credit cum Subsidy Scheme is being implemented
Month
Year

Physical Performance
1. Annual Target
2. District wise breakup if any
3. Houses completed (Cumulative for the year including current month
Category During the month Cumulative including current month
Scheduled Caste
Scheduled Tribe
Freed Bonded Labourers
Ex- servicemen
Disabled
Women
Others

3. Percentage of houses completed to annual target ____%
4. Houses under construction ____( in nos.)

Financial Performance
1. Opening Balance as on 1.4.    _____Rs in lakhs
2. Central Releases     _____Rs in lakhs
3. State Releases      _____Rs in lakhs
4. Total availability of funds (1+2+3)   _____Rs in lakhs
5. Cumulative expenditure upto end of the month _____Rs in lakhs
Category During the month Cumulative including current month
Scheduled Caste
Scheduled Tribe
Freed Bonded Labourers
Ex- servicement etc
Disabled
Women
Others
6. Percentage of expenditure to total availability of funds (total expenditure/ total availability of funds * 100.
7. Total Loan disbursed
8. Total Loan recovered
9. Average Loan disbursed
10. Average Loan recovered
11. Credit: Subsidy Ratio

Proforma II

Credit cum Subsidy Scheme
Annual Performance
State/ UT
Agency(ies) Implementing Credit cum Subsidy Scheme
Districts where the Credit cum Subsidy Scheme is being implemented
Month
Year

4. Percentage of houses completed to annual target ____%
5. Houses under construction ____( in nos.)

Financial Performance
6.   Opening Balance as on 1.4.    _____Rs in lakhs
7. Central Releases     _____Rs in lakhs
8. State Releases      _____Rs in lakhs
9. Total availability of funds (1+2+3)   _____Rs in lakhs
10. Cumulative expenditure upto end of the month _____Rs in lakhs

Category During the month Cumulative including current month
Scheduled Caste
Scheduled Tribe
Freed Bonded Labourers
Ex- servicement etc
Disabled
Women
Others
11. Percentage of expenditure to total availability of funds (total expenditure/ total availability of funds * 100.
12. Total Loan disbursed
13. Total Loan recovered
14. Average Loan disbursed
15. Average Loan recovered
16. Credit: Subsidy Ratio