Sammary: India’s “One Nation One Housing Policy,” guided by SDG 11 and UNHRC frameworks, aims to address shelterlessness through financial and regulatory reforms. The policy critiques the current Prime Minister’s Awaz Yojana and urban CLSS schemes for their inefficiencies, particularly the challenge of high land costs. It advocates for a universal right to housing, leveraging the Dravidian model’s principles of social justice and equality. The proposed solution includes uniform land rates managed by the RBI, the introduction of land compensation bonds, and integrating insurance into housing finance. The policy suggests assigning a basic amount of Floor Space Index (FSI) and Undivided Share (UDS) of land to each citizen as a fundamental right. It proposes a structured system where land compensation bonds can be issued, incorporating tax-free benefits and GST, to support affordable housing. The strategy also includes creating a detailed framework for housing loans and insurance, ensuring long-term financial sustainability and inclusivity in housing access.
DRAVIDIAN MODEL OF
ERADICATING SHELTERLESSNESS
(UNIVERSALLY) BASED ON
SOCIAL JUSTICE, EQUALITY, HUMANITY, SELF
RESPECT AND
RATIONAL THINKING
Authors : NARASIMHAN, PRAKASH & SRIRAM
ONE NATION ONE HOUSING POLICY
(INDIA CENTRIC) BASED ON SDG 11/
VISION 2030 AND UNHRC A/HRC/52 /28
PREPARED AND DOCUMENTED FOR INDIAN SUB-
CONTINENT
PART – F
HOUSING – FINANCIALISATION
(USING PROFESSOR BRAHMANANDA’S SEMI
BOMBLA AND INDIFFERENCE CURVES AND
PROFESSOR SAMUELSON’S REVEALED
PREFERENCE THEORY)
FINANCIALIZATION
> The present format of Prime Minister’s Awaz Yojana both for rural and CLSS scheme for urban lacks some difficulties. All cannot bring land as equity and get subsidy and CLSS scheme is a non – starter. Because of high land cost.
> Even America is considering, declaring shelter as a right and may revamp FEDMAC & FEDMAA initiatives.
> Fundamental question is how to give shelter to all who have no land, no front end money, ever rent payers, first shelter seekers, marginal title holders, people on encroachments and slums etc. How to solve all the issues from supply side and demand side acceptable and amicable manner from global perspective and eradicate shelter less ness is the question.
> In India we have about 8 lakh pin code and if each pin code has 10 guideline value from states, we will have about 80 lakh circle rates for land and in this scenario, what rate Reserve Bank should take as collateral value.
> This calls for a uniform land rate to be followed by RBI both for housing and infra projects. This will eliminate cross collaterals and vulture funds in asset creation process.
> Off late climate change and social distancing after Corona is included in housing and as a human rights issue and united nations has prescribed special segregation and individual space as rights as mentioned in reports of LEILANI FARAH and BALAKRISHNAN RAJAGOPALAN both UN special reporter on housing.
> Insurable interest, Banking Interest have to be incorporated both in supply side and demand side.
> Our Dravidian model of eradicating shelter less ness universally, are of the firm opinion, the definition of Housing is called spatially segregated shelter able space creation ( supply side) and absorption (demand side) as fundamental rights in affordable and adequate manner and measured in FSI is called Housing.
> RERA RBI House with housing loan as coupons. In lots of 450, 600, 750, 900, 1050, 1200 sq.ft shelter able space Drawing rights. Based on family size, family income for next 33 years(as insurable period) bankable for 25 years with land portion free and on cost of construction basis is suggested.
> RERA IRDAI should come with insurance package for life and non-life for every person who draws space
> Using indifference curve we have to issue land compensation Bond.
CONCEPT NOTES FOR ISSUANCE OF LAND COMPENSATION BONDS
INTRODUCTION :
There are two inequalities in the current format of housing. One is landed gets FSI and landless never gets. Among the landed also for the same FSI, creating land, the values are different and per acre it is between 600 Crores to 10 lakhs. How to evolve a common policy so that millions of houseless households can be given their shelter. The land price in housing is hovering around 35 to 90 % of the total cost. Even in the tough Covid times we see large ticket transactions, for example in Malabar Hill for 1000 Crores for few acres and a 32000 Sq. ft. plot in Calcutta went for 100 Crores and 1700 Sq. ft. flat in Worli went for about 17 Crores meaning per Sq.ft. 1 lakh rupees. Also some builders want to sell 188 Sq. ft. flat for one crore. A car park was sold for 25 lakhs, this is the upper end scenario.
There are lot of literatures available for land compensation bonds. But they cannot be practised for India. We are bringing about 30 Crore families either marginal titled or houseless or rent payers or first shelter seekers to main stream and this calls for a new approach with right to shelter as the theme and not as commodity and about 30 more parameters prescribed by United Nations have to be followed.
After lot of thinking we have come to a conclusion that 150 Sq. ft. of FSI at cost of construction basis and 50 Sq. ft. of undivided share of land or equivalent should be the birth right for every Indian citizen. Adequate housing is described as 1200 Sq. ft. FSI for 8 member family and 400 Sq. ft. UDS as basic requirement. For those who cannot pay should be falling under Ministry of Social Welfare on same terms. We keep insurable interest same. An insurable interest is described as number of ordinary citizens living in a acre of land and the cost of land and building and movable assets and we have kept as 150 Crores both for Ministry of co-operation and social welfare at 800 citizens per acre land at 2.778 FSI and 120000 Sq. ft. constructed area at 2500 per Sq. ft. valuing 30 Crores and movable at 20 crores and life at 10 lakhs for 1000 people at 100 Crores will sum up to 150 Crores. Accordingly land compensation bonds structured at 15 % of the value of construction and one cent of land UDS given free to each household, and 1 Crore bond face value with 5 year maturity and at 5 % tax free (25 Lakhs nontransferable and non-negotiable tax free coupons detachable), and 5 % GST free for 30 Crores valuing 1.5 crores and assignment rights at 100 rupees for land measuring 43200 Sq. ft. at 43.20 lakhs as base and for assignment rights of FSI of120000 Sq. ft. at 100 rupees per sq. ft. will fetch 1.20 Crores. This will sum up to 100 lakhs bond value plus 25 lakhs Tax free income plus 150 lakhs as GST benefits plus 120 lakhs as assignment rights for FSI and 43.2 lakhs for assignment rights of land and which will total 438.2 lakhs for each acre. Let us put in table format to achieve 1 Crore bond how much land will be required at different FSI from 2.778, 2.5, 2, 1.5, 1, 0.75, 0.5 and .02778. Similarly in another table we will find out in one acre land with different FSI at 2.778, 2.5, 2, 1.5, 1, 0.75, 0.5 and .02778 and how much bond can be issued and the sum total of benefits.
TABLE (1) TO ACHIEVE 1 CRORE BOND HOW MUCH LAND WILL BE REQUIRED AT DIFFERENT FSI FROM 2.778, 2.5, 2, 1.5, 1, 0.75, 0.5 AND .02778.
GST BEN-EFIT
| FSI Index | TO ACHIEVE 120000 FSI | LAND REQUIRED IN SQ.FT. |
LAND REQU- IRED IN ACR ES | FACE VALUE OF BONDS | 5% TAX FREE 5 YEARS | 5 % OF FSI IN COST OF CONSTR UCTI AT 2500 RS / SQ.FT. FOR 120000 SQ.FT. |
| 2.778 | 120000 | 43200 | 1 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 2.5 | 120000 | 48000 | 1.11 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 2 | 120000 | 60000 | 1.39 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 1.5 | 120000 | 80000 | 1.85 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 1 | 120000 | 120000 | 2.78 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 0.75 | 120000 | 160000 | 3.70 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
| 0.5 | 120000 | 240000 | 5.55 | 100 LAKHS |
25 LAKHS | 150 LAKHS |
HOUSE WITH HOUSING LOAN COUPON ON COST BASIS
WITH LAND SHARE IN CO—OPEATIVE HOUSING
SOCIETY or IN THE CASE OF PRIVAE DEVELOPERS,
SHARE OF LAND WHICH WILL BE COMPENSATED AS
PER LAND COMPENSATION BOND
To be offered to all citizens from 21stn age to 66 year old with a view to have 33 year old new houses.
> RBI has to add interest and give EMI table upto 25 years
| NO. OF PERSONS | 3 | 4 | 5 | 6 | 7 | 8 |
| Built up area | 450 | 600 | 750 | 900 | 1050 | 1200 |
| UDS of land, if | 162 | 216 | 270 | 324 | 378 | 432 |
| FSI is 2.778 | ||||||
| UDS of land, If | 225 | 300 | 375 | 450 | 525 | 600 |
| FSI is 2.0 | ||||||
| UDS of land, If | 450 | 600 | 750 | 900 | 1050 | 1200 |
| FSI is 1 | ||||||
| UDS of land, If | 900 | 1200 | 1500 | 1800 | 2100 | 2400 |
| FSI is 1/2 | ||||||
| Approximate | 11,25 | 15 | 18.75 | 22.50 | 26.25 | 30.00 |
| value of House at 2500 Rs. /sqft/ |
LAKHS | LAKHS | LAKHS | LAKHS | LAKHS | LAKHS |
> IRDA has to add insurance premium accordingly.
> State Government have to add stamp duty registration and local bodies for electricity, water, sewerage etc.
> How much GST can be given to land compensation Bonds.
> EMI should be 20 % of every household salary from 3 lakhs to 15 lakhs yearly.
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