[Updated up to 31st March, 2009]














Government of India

Ministry of Rural Development

Department of Rural Development

Krishi Bhawan

New Delhi-110001





[Updated up to 31st March, 2009]









Government of India

Ministry of Rural Development

Department of Rural Development

Krishi Bhawan

New Delhi-110001







































































































Housing is one of the basic requirements for human survival. For a normal citizen owning a house provides significant economic and social security and status in society. For a shelterless person, a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu.  A housing programme for the rehabilitation of refugees was taken up immediately after partition by the Ministry of Refugee Rehabilitation and this lasted till around 1960. Approximately 5 lakh families were housed in various centres mainly located in Northern lndia. A Village Housing Scheme was also launched as part of the Community Development Movement in 1957, in which loans to individuals and cooperatives were provided up to a maximum of Rs. 5000/- per house. However, only 67000 houses were built under this scheme by the end of the Fifth Plan (1980). In 1972-73, the Estimate Committee of the Lok Sabha in its 37th Report pointed out that ‘‘the Committee is distressed to note that although 83% of India's population lives in villages and about 73% of the rural population reside in unsatisfactory kutcha structures, the problem of rural housing has not received the close attention of the Government’’. Following this, certain initiatives were undertaken by Government including the launching of the House Sites cum Construction Assistance Scheme which began as a Central Scheme in the 4th Plan and was transferred to the State Sector with effect from 1.04.1974 on the recommendation of the National Development Council (NDC).


The genesis of the Indira Awaas Yojana (IAY) can be traced to the programmes of rural employment, which began in the early 1980s. Construction of houses was one of the major activities under the National Rural Employment Programme (NREP), which began in 1980, and the Rural Landless Employment Guarantee Programme (RLEGP), which began in 1983. There was, however, no uniform policy for rural housing in the States. For instance, some States permitted only part of the construction cost to be borne from NREP/ RLEGP funds and the balance was to be met by beneficiaries from their savings or loans obtained by them. On the other hand, others permitted the entire expenditure to be borne from NREP/ RLEGP funds. Further, while some states allowed construction of only new dwellings, others permitted renovation of existing houses of beneficiaries. As per announcement made by the Government of India in June 1985, a part of the RLEGP fund was earmarked for the construction of houses for SCs/STs and freed bonded labourers. As a result, Indira Awaas Yojana (lAY) was launched during 1985-86 as a sub-scheme of RLEGP. IAY, thereafter, continued as a sub-scheme of Jawahar Rozgar Yojana (JRY) since its launching in April, 1989. 6% of the total JRY funds were allocated for implementation of lAY. From the year 1993-94, the scope of lAY was extended to cover below the poverty line Non-Scheduled Castes/ Scheduled Tribes families in the rural areas. Simultaneously, the allocation of funds for implementing the scheme was raised from 6% to 10% of the total resources available under JRY at the national level, subject to the condition that the benefits to Non-Scheduled Castes/ Scheduled Tribes poor should not exceed 4% of the total JRY allocation. IAY was de-linked from JRY and made an independent scheme with effect from 1st January 1996.


Since 1999-2000, a number of initiatives have been taken to improve the Rural Housing (RH) Programme by making provision for upgradation of unserviceable kutcha houses and by providing credit with subsidy for certain sections of the poor.   Emphasis has also been laid on use of cost affective, disaster resistant and environment friendly technologies in rural housing.










1.1.         Indira Awaas Yojana (IAY) :


 Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development to provide houses to the poor in the rural areas. 


1.2            Objective :


The objective of the Indira Awaas Yojana is primarily to help construction/upgradation of dwelling units of members of Scheduled Castes/Scheduled Tribes, freed bonded labourers, minorities in the below poverty line category1 and other below poverty line non-SC/ST rural households by providing them a lump sum financial assistance.


1.3         Funding Pattern :



 Indira Awaas Yojana is a Centrally Sponsored Scheme funded on cost-sharing basis between the Government of India and the State Governments in the ratio of 75:25.  However, in the case of North-Eastern States and Sikkim, funding will be shared between the Government of India and these States in the ratio of 90:10 respectively2. In the case of Union Territories, the entire funds under this Scheme are provided by the Government of India.


1.4 Target Group:


The target groups for houses under the IAY are below poverty line households living in the rural areas, belonging to Scheduled Castes/Scheduled tribes, freed bonded labourees, minorities in the BPL category and non-SC/ST BPL rural households, widows and next-of-kin to defence personnel/paramilitary forces killed in action residing in rural areas (irrespective of their income criteria), ex-servicemen and retired members of paramilitary forces fulfilling the other conditions.



1 Vide Ministry’s order No.L-11019/2/2006-RH dt. 08/02/2007.

2 Vide Ministry’s order No.K-11017/1/2006-RH(P) dt. 21/11/2008.


1.5     Earmarking of Funds for SC/ST/Minority Beneficiaries:


          The available resources under the Scheme in a district are earmarked for various categories as under:


(i)          At least 60% of the total lAY funds and physical targets should be utilized for construction/upgradation of dwelling units for SC/ST BPL households.


(ii)         A maximum 40% for non-SC/ST BPL rural households.


(iii)             IAY funds and physical targets will be earmarked for BPL minorities in each State as indicated by the Ministry.1


(iv)       3% of the above categories are for physically and mentally challenged persons.


If any particular category is exhausted or not available in a district, allocation can be utilized for other categories as per priorities given in the Guidelines after it has been certified to this effect by the Zilla Parishad/DRDA concerned.


NB: Eligible minorities are those notified under section 2 (c) of the National Commission for Minorities Act, 1992 – Muslims, Christians, Sikhs, Budhists and Parsis.  However, in the States where minorities are in a majority, only other minority population is treated as minority. Muslims in J&K, Sikhs in Punjab, and Christians in Meghalaya, Mizoram and Nagaland are not treated as minorities in the respective States.1


1.6     Strategy for the implementation of the Programme:



          The Programme will be implemented through the Zilla Parishads/DRDAs and houses will be constructed by the beneficiaries themselves.


1 Vide Ministry’s order No.L-11019/2/2006-RH dt. 08/02/2007.







2.1.    Identification of beneficiaries :


The District Panchayat/Zilla Panchayat/District Rural Development Agencies (DRDAs) on the basis of allocations made and targets fixed shall decide the number of houses to be constructed / upgraded Panchayat-wise under IAY, during a particular financial year. The same shall be intimated to the Gram Panchayat concerned. Thereafter, the beneficiaries, restricting to this number, will be selected from the Permanent IAY Waitlists prepared on the basis of BPL lists in order of seniority in the list.  The Gram Panchayats may draw out the shelterless families from the BPL List strictly in the order of ranking in the list.  A separate list of SC/ST families in the order of their ranks may be derived from the larger IAY list so that the process of allotment of 60% of houses under the scheme is facilitated.  Thus, at any given time, there would be two IAY Waitlists for reference, one for SC/ST families and the other for non-SC/ST families.  Once the lists are prepared, they need to be approved by the Gram Sabha to be attended by a government servant who would be a nominee of the Collector. Selection by the Gram Sabha is final.  No approval by a higher body is required.   Zilla Parishads/DRDAs and Block Development Offices should, however, be sent a list of selected beneficiaries for their information.  The Permanent IAY Waitlists so prepared will be displayed at a prominent place either in the Gram Panchayat office or any other suitable place in the village. The lists will also be put on the website by the concerned DRDAs1.







Vide Ministry’s order No.H-11032/1/2005-RH dt.29/11/2005


2.2.    Priority in Selection of Beneficiaries:


Prioritization of beneficiaries will be as follows:


(i)      Freed bonded labourers

(ii)     SC/ST households

·                     SC/ST households who are victims of atrocity

·                       SC/ST households, headed by widows and unmarried women.

·                     SC/ST households affected by flood, natural calamities like earthquake, cyclone and man-made calamities like riot.

·                     Other SC/ST households


(iii)    Families/widows of personnel from defence    services/paramilitary forces, killed in action.

(iv)   Non- SC/ST BPL households.

(v)    Physically and mentally challenged persons.

(vi)   Ex-servicemen and retired members of the paramilitary forces.

(vii)   Displaced persons on account of developmental projects, nomadic/semi-nomadic, and de-notified tribals, families with physically/mentally challenged members.


The selection of the beneficiaries will be subject to the condition that the households of all the above categories except (iii) are Below Poverty Line (BPL)










2.3.    Involvement of beneficiaries:


The beneficiaries should be involved in the construction of the house. To this end, the beneficiaries may make their own arrangements for procurement of construction material, engage skilled workmen and also contribute family labour. The beneficiaries will have complete freedom as to the manner of construction of the house. Zilla Parishads/DRDAs can help the beneficiaries in acquiring raw material on control rates, if they so desire or request the Zilla Parishads/DRDAs in this regard. This will result in economy in cost, ensure quality of construction, lead to greater satisfaction and acceptance of the house by the beneficiary. The responsibility for the proper construction of the house will thus be on the beneficiaries themselves. A Committee may be formed, if so desired, to coordinate the work. The Committee shall be sensitized to incorporate hazard-resistant features in the design of the houses.


2.4.    Allotment of Houses:



 Allotment of dwelling units should be in the name of female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife.

        However, if there is no eligible female member in the family available / alive, house can also be allotted to the male member of a deserving BPL family.




3.1.   Unit Assistance for Construction of IAY Houses and Upgradation:


The ceiling on grant of assistance per unit cost under the Indira Awaas Yojana for construction of a new house and upgradation of an unserviceable kutcha house is given as under: -




Plain Areas

Hilly/ Difficult Areas


Construction of house including Sanitary latrine and smokeless Chulha

Rs. 45,000/-

Rs. 48,500/-


Upgradation of un-serviceable households

Rs. 15,000/-

Rs. 15,000/-



In addition to the assistance provided under the IAY, an IAY beneficiary can avail a loan of upto Rs.20,000/- per housing unit under differential rate of interest (DRI) scheme at an interest rate of 4% per annum1.  


3.2    Construction of sanitary latrines and smokeless chulhas and provision of other basic amenities:


Construction of sanitary latrine and smokeless Chulha should be taken up with each IAY house.  The latrine could be constructed separate from the IAY house on the site of the beneficiary.  There should be convergence with activities and funds provided under the Total Sanitation Campaign (TSC), for providing sanitary latrines in the IAY houses2.  All efforts should be made to ensure that every IAY house is provided with a sanitary latrine under the Total Sanitation Campaign Programme1 2



1vide Ministry’s order No.J-11060/1/2007-RH(P) dt.31/03/2008.

2Vide Ministry’s order No.J-11012/2/2006-RH dt.20/12/2006.


                Similarly, with a view to provide comprehensive benefits to the rural BPL families, Indira Awaas Yojana has been dovetailed with Rajiv Gandhi Grameen Vidyutikaran Yojana being implemented by the Ministry of Power.  Hence, the DRDAs shall give the list of IAY beneficiaries to the implementing authorities of RGGVY and co-ordinate with them to ensure free electricity connections to IAY houses.


          The State/District Administration and PRIs are expected to facilitate provision of all basic amenities for an IAY house.


3.3     Loan for IAY Beneficiaries:


In addition to the assistance provided under the IAY, an IAY beneficiary can avail himself of a loan of upto Rs.20,000/- per housing unit under differential rate of interest (DRI) scheme at an interest rate of 4% per annum.2 It will be the responsibility of the State Governments/DRDAs concerned to coordinate with the financial institutions to make available the credit facility to those beneficiaries who are interested. 


3.4   Credit-cum-Subsidy for construction / upgradation of rural houses :


          Upto 20% of the total funds can be utilized for upgradation of existing kutcha houses and toward subsidy for construction of houses with credit from Banks/Financial Institutions.  Credit-cum-Subsidy will be provided subject to the following conditions:


             i.    Rural households having an annual income of upto Rs.32,000/- only.

            ii.    Ceiling of subsidy under the Scheme Rs. 12,500 per household.

          iii.    The upper limit of construction loan under this scheme will be Rs.50,000/- only.  Credit arrangement will be as mentioned in para 3.3.



1Vide Ministry’s order No. J-16013/1/2007-RH dated 23/02/2009   

2Vide Ministry’s order No. J-11060/1/2007-RH(Pt.) dated 31/03/2008.


3.5     Location of the lndira Awaas Yojana :


The Indira Awaas Yojana dwelling units should normally be built on individual plots in the main habitation of the village. The houses can also be built in a cluster within a habitation, so as to facilitate the development of infrastructure such as internal roads, drainage, drinking water supply etc. and other common facilities. Care should always be taken to see that the houses under the IAY are located close to the village and not far away, so as to ensure safety and security, nearness to work place and social communication.  To the extent possible, the site should not be located in disaster prone areas for example frequently floodable areas.




















4.1     Criteria for Allocation of Resources :


Central assistance under the Indira Awaas Yojana will be allocated among the States/UTs giving 75% weightage to rural housing shortage as per Census data and 25% weightage to poverty ratio.  Similarly, inter-district’s allocation within a State/UT will be made by giving 75% weightage to housing shortage and 25% weightage to rural SC/ST population of the concerned districts.  The targets for the Blocks within a District and Village Panchayats within the Blocks will be decided on the same principles.  Diversion of resources from one district to another is strictly prohibited.  Upto 20% of the total funds can be utilized for upgradation of existing kutcha houses and towards subsidy for construction of houses with credit in accordance with Para 3.1 and 3.4.1



4.2     Release of Central Assistance to Zilla Parishads/DRDAs :


The Indira Awaas Yojana funds are operated by the Zilla Parishads/DRDAs at the district level. Central assistance will be released every year to the Zilla Parishads/DRDAs, in two installments, subject to the fulfillment of the following conditions: -


(a)    The first installment amounting to 50% of the total allocation for a particular district is released in the beginning of the financial year. This is subject to condition that the second installment during previous year was claimed and released without any condition. However, if any specific conditions had been imposed at the time of release of the last installment of the previous year, its compliance will have to be ensured before release of the first installment.



1 Vide Ministry’s order No.H-11027/1/2004-RH dt. 01/07/2005


(b)     The second installment for the districts will be released on receipt of request from the DRDAs as per Proforma at Annexure - I on fulfillment of the following conditions: -


(i)     60% of the total available funds, that is opening balance of the year (in case of proposal for the first installment, opening balance of the previous year) plus the amount received including the State share (if the State share has not been released against the first installment, notional State share will be taken into account for the purpose of calculation of total availability) and other receipts should have been utilized at the time of submitting the proposal for the second installment.

(ii)    The opening balance of the District should not exceed 10% 1 of the funds available during the previous year.  In case, the opening balance exceeds this limit, the Central share of the excess will be deducted proportionately at the time of release of the second installment.


(iii)    The State Government has made sufficient provision in their Budget to match the Central financial assistance.


(iv)   The State Government should have released all its contribution (including that of the previous years) due, up to the date of the application.  In the event of shortfall in State share, corresponding amount of Central share (i.e. three times the shortfall of State share) will be deducted from the amount of Central share of the second installment of the current year.





1 Vide Ministry’s order No.H-11011/6/2004-RH(P) dt. 05/08/2005


(v)        Submission of Audit Reports for the IAY for the last year and submission of Action Taken Report on the comments made in the audit report of the previous year.  The Audit Report should consist of Bank Reconciliation Statement and a Certificate from the Chartered Accountant that while auditing the district account of the IAY, the accounts of all Implementing Agencies such as block-wise expenditure etc have been taken into account. Where funds are released to the beneficiaries through blocks, block-wise expenditure statement duly countersigned by Chartered Accountant should be enclosed with the Audit Report.  Where funds are released through Gram Panchayat without going through the blocks, the expenditure should be compiled at block level and block-wise expenditure statement duly countersigned by the Chartered Accountant, should be submitted.  In that case, the Auditor will also certify that the block-wise expenditure statement is based on the UCs received from the Gram Panchayats.  However, where funds are released to the beneficiaries directly by the DRDA, block-wise expenditure statement is not required.  In that case, the Auditor will certify that the funds have been released to the beneficiaries directly by the DRDA1.


(vi)       Submission of Utilization Certificates of cash component from DRDAs based on reports received from the other Implementing Agencies such as Block Development Office etc. for the previous year should be submitted in the prescribed Proforma as per Annexure -  II.


(vii)      Submission of non-diversion and non-embezzlement certificate.


1Vide Ministry’s Order No. J-12024/1/2008-RH(A/c) dated 28.8.2008.

(viii)  Annual Plan should have been approved by the Zilla Parishad or the Governing Body of the DRDA as the case may be.


(ix)   All pending progress/monitoring reports should have been sent.


(x)    Any other condition imposed from time to time will also have to be complied with.


(xi)   All documents must be checked/enclosed with the proposal as per the Checklist.  (Annexure – III)


(c)     In the case of districts/UTs having limited working season or any peculiar problem such as Kinnaur, Lahaul and Spiti, Leh, Kargil, Andaman and Nicobar Islands and Lakshadweep and any other areas as decided, the entire Central assistance may be released in one installment. The State shall also release its share in one installment. In the case of these districts, to which funds are released in one installment, funds will be released on fulfillment of the following conditions:



(i)                at least 60% of the total available funds, i.e. opening balance of the previous year plus the amount received during the previous year including the State share, wherever applicable (if the State share has not been released, notional State share will be taken into account for the purpose of calculation of total availability) and other receipts, if any, should have been utilized at


the time of submitting the proposal for lump sum release of funds.  Utilization Certificate in form GFR 19-A should be furnished in this regard.


(ii)      Audit Report for the IAY for the year previous to last year, should be submitted along with the proposal.  The Audit Report should consist of Bank Reconciliation Statement and Block-wise Expenditure Statement or a certificate from the Chartered Accountant, in lieu thereof, that the funds are being transferred to the beneficiaries directly from the DRDA.


(iii)    Utilization Certificates of cash component from DRDAs based on reports received from the other Implementing Agencies such as Block Development Office etc. for the year previous to last year should be submitted in the prescribed proforma as per Annexure-II.


(iv)     All other conditions stated in Para 4.2 (b) will be applicable.1


4.3        Cuts to be imposed on late receipt of proposals:


4.3.1     The proposal for release of second installment by the Zilla Parishad/DRDA complete in all respects should be submitted latest by 31st December every year.


4.3.2       To maintain financial discipline, a mandatory deduction (s) on account of late submission of proposal by the State Government shall be imposed depending upon the date of receipt of complete proposal for release of second installment under IAY. Under the system, there will be progressive deductions for proposal (s) received in the month of January and February @ 10% and 20% respectively on the total Central allocation for the year. Incomplete proposals will not be accepted. The date on which last information is received from the State shall be treated as date of receipt of the proposal.


4.3.3    Notwithstanding the above provision (Para 4.3.2), State should submit the proposal for the second installment before 15th February every year. 


1 Vide Ministry’s order No.H-11011/6/2004-RH(P) dt. 04/12 /2008.


Acceptance of proposal(s) after 15th February upto 28th February will be considered only in exceptional circumstances.  Proposals will not be accepted after February. However, if the proposal received in the month of March is accepted under special circumstances, 30% cut in the allocation will be imposed.


4.3.4  Zilla Parishads/DRDAs are required to complete all the incomplete houses sanctioned/taken up in the previous years first (with  the funds  available during  the current year)  even  if  there is a deduction while releasing the 2nd installment in the previous year due to unavoidable circumstances. The targets fixed at the time of allocation of funds to the districts/states during the current year would be adjusted accordingly keeping in view the deduction/additional release, if any, during the previous year. 

4.4        Earmarking of Resources under the IAY:


4.4.1   5% of the total allocated funds under IAY will be kept apart to meet the exigencies arising out of natural calamities and other emergent situations like riot, arson, fire, rehabilitation under exceptional circumstances etc with a district-wise ceiling of 10% of annual allocation (including State share) or Rs.70.00 lakh whichever is higher.1


Proposals for this purpose have to come from State Governments/Admn. of UTs showing the extent of damage and the estimated fund requirement in respect of the proposed IAY houses provided  assistance for construction of a house has not been obtained from any other source.    The upper limit shall be 10% of the district’s annual allocation or Rs.70.00 lakh, whichever is higher.  However, this will be within the overall ceiling of 5% funds kept apart for natural calamities.  The relief will be as per the norms with regard to per unit ceiling of assistance for an IAY house prescribed under the scheme.1


1 Vide Ministry’s orders No.H-11011/6/2004-RH(P) dt. 18/08/2008.

              In order to facilitate timely relief to victims in the case of fire, riots and arson and enable immediate reconstruction of damaged houses, District Collectors/District Magistrates/ Deputy Commissioners at the district level are authorized to first incur the expenditure and extend assistance to victims of such calamities.  The expenditure may be from their own resources or from the district’s IAY allocation.  The ceiling of assistance to the beneficiaries will be as per IAY norms and the limits mentioned in the above para.  The central share of the expenditure so incurred by the DRDA will be reimbursed by the Ministry of Rural Development.  The DRDA will submit the proposal for reimbursement of central share along with details of families assisted and Utilization Certificate for the amount spent, duly signed by the Collectors.  The Collector will also certify the occurrence & extent of the damage and also provide a certificate to the effect that no assistance for construction of house has been extended to the said victims of fire/riots/arson from any other source.  The Ministry of Rural Development will meet such reimbursement expenditure from the 5% IAY funds earmarked for calamities.1


4.4.2          The unutilized amount, if any, of this provision of 5% of the funds of the scheme, will be utilized for allocation to the better performing States/Districts.  The Ministry of Home Affairs or any other Ministry/Department handling the natural calamity or other emergent situation will also be informed about the allocation of these funds, in order to avoid any duplication in relief work. Physical and financial progress reports of the funds so spent have to be furnished by the State Governments concerned on the work done within the provision of the allocation made for these contingencies.




              1 Vide Ministry’s orders No.H-11011/6/2004-RH(P) dt. 18/08/2008

4.5     Maintenance of Accounts:


Zilla Parishads/DRDAs will follow the accounting procedures prescribed by the Ministry of Rural Development. The finalized accounts of the previous year shall be got approved by the General Body of the concerned DRDA on or before 30th June and got audited on or before 31st August of the same year. Copies of the Audit Report as accepted by the General Body of the concerned DRDA shall be sent to the State Government and Central Government on or before 30th September of the year. The above procedure will be in addition to any other procedures to be followed and requirements to be fulfilled by the DRDA as per the Articles of Memorandum of the Association.



4.6     Release of State share to DRDAs :


The State Government shall release its share to the Zilla Parishads/DRDAs within one month after the release of Central assistance and copy of the same should be endorsed to Ministry of Rural Development.


4.7     Separate Bank Account for the Indira Awaas Yojana :


The lAY funds (Central share as well as State share) shall be kept in a nationalized/scheduled or cooperative bank or a Post Office in an exclusive and separate savings bank account by the DRDAs.



4.8     Utilization of Interest Earned on Deposits :


The interest amount accrued on the deposits of the lAY funds shall be treated as part of the lAY resources.


4.9     Drawal of funds by the DRDAs :



Drawal of funds from the accounts shall only be made for incurring expenditure under the lAY.



4.10   Payment to beneficiaries:



Payment should be made to the beneficiary on a staggered basis depending on the progress of the work. The entire money should not be paid to the beneficiary in lump sum.   Installments of payment to be linked to the progress of work can be decided by the State Government or at the District level.

            Funds under IAY should be transferred only directly into the beneficiaries’ accounts in a bank or post office.  For this purpose, as soon as the beneficiaries are selected, they should be asked to open a Bank/Post Office account, in case they do not already have an account in any Bank or Post Office, and to intimate the account number to the Gram Panchayat/BDO/DRDA, as the case may be.1













                1 Vide Ministry’s order No.J-11012/1/06-RH(P) dt. 27/05/2008




5.1     Ban on contractors or departmental construction :


No contractor shall be involved in the construction of dwelling units under the lAY, by the Zilla Parishad/DRDA/Implementing Agency. If any case of construction through contractors comes to notice, Government of India will have the right to recover the releases made to the State for those lAY houses. The house should also not be constructed by any Government department. Government departments or organizations can, however, give technical assistance or arrange for coordinated supply of raw materials such as cement, steel or bricks if the beneficiaries so desire.   The spirit of the lAY is that the house is not to be constructed and delivered by any external agency. On the other hand, the house is to be constructed by the beneficiary himself/herself.


5.2     Appropriate Construction Technologies and Local Materials :



Effort should be made to utilize, to the maximum possible extent, local materials and cost effective disaster resistant and environment friendly technologies developed by various institutions.  Zilla Parishad/DRDA should contact various organizations/institutions for seeking expertise information on innovative technologies, materials, designs and methods to help beneficiaries in the construction/upgradation of durable, cost effective houses and disaster resistant houses. Help of Building Centres may also be taken to get the information on cost effective technologies/materials and conducting training for rural artisans.  The State Governments may also arrange to make available information on cost effective environment friendly technologies, materials, designs etc., at district/block level.  This information should only be for guidance and any other suitable location specific technology can be adopted by the beneficiaries.



5.3     Type Design :


No type design should be prescribed for the lAY dwelling units, except that the plinth area of the houses should not be less than 20 sq.mts. The layout, size and type design of the lAY dwelling units should depend on the local conditions and the preference of the beneficiary. The houses, should be designed in accordance with the desire of the beneficiaries, keeping in view the climatic conditions and the need to provide ample space, kitchen, ventilation, sanitary facilities, smokeless chullha, etc. and the community perceptions, preferences and cultural attitudes. The barrier free concept may be incorporated in the houses meant for the physically challenged, with a view to facilitating their smooth and free movement in the house. In areas frequented by natural calamities such as fire, flood, cyclones, earthquakes, etc., incorporation of disaster resistant features in design should be encouraged.


5.4     Fuel Efficient Chulhas :


It should be ensured that each Indira Awaas Yojana dwelling unit is provided with a smokeless chulha, which is a fuel-efficient alternative, smoke free, healthy for clean environment and more convenient to use.



5.5     Drinking Water Supply :



The availability of drinking water supply should be ensured by the agencies responsible for the implementation of the Indira Awaas Yojana.



5.6     Environmental Improvements and Social Forestry :



Plantation of trees in the entire habitation or around the individual house may be taken up simultaneously. Trees may be planted near the housing clusters so that, in due course, enough trees are available nearby, to enable the beneficiaries to source fuel/fodder/small timber. Such plantations can be taken up under the social forestry programme. Some of the popular indigenous species whose plantation can be undertaken include Neem (Azadirachta indica); Mahuva (Madhuca indica); Amla (Emblica officianlis); Coconut (Cocos nucifera); Deodar (Credrees deadora); Mango (Magnifera indica); Oak (Quercus & Spp.); Rose wood (Dalbergia latifolia); Chandan (Santalum album); Pipal (Ficus religiosa) etc. This list is merely illustrative, and not exhaustive. Species may vary with region, location and geo/agro-climatic conditions. Cultivation of fruits and vegetables at household level in the houses may also be encouraged for improving nutritional status.


5.7     Training: 


Officers dealing with the IAY at the State, district and Block levels must be trained in various disaster resistant features to be adopted in the houses and they should ensure that this is complied with during their field visits.  In addition, local carpenters and masons should be trained for skill upgradation and use of low cost technology and local material under the SGSY. The awareness among the beneficiaries must be created about the disastrous resistant and environment friendly technology through exhibitions of low cost technologies at the district and block level, seminars, workshops etc.  The services of State Institutes of Rural Developments (SIRDs), Extension Training Centres may be taken up for this purpose. 



5.8     Involvement of Non-Governmental Organizations :



Suitable local Non-Governmental agencies with proven good track record wherever available may be associated for assistance in construction of dwelling units under the Indira Awaas Yojana. The supervision, guidance and the monitoring of construction can be entrusted to these non-governmental organizations. In particular, non-governmental organizations should be made use of to popularize the use of sanitary latrine and smokeless chulhas, as well as innovative technologies, materials designs, etc for cost effective construction.  If necessary, funds can be utilized for this purpose from the earmarked funds for training or by dovetailing with the total sanitation campaign.


5.9     Inventory of Houses :



The implementing agencies should have a complete inventory of houses constructed/upgraded under the lAY, giving details of the date of start and the date of completion of construction of dwelling unit, name of the village and Block in which the house is located; occupation and category of beneficiaries and other relevant particulars.



5.10   Display of IAY Board and Logo :



Completion of a dwelling unit in no case should take more than two years. On completion of an IAY dwelling unit, the Zilla Parishad/DRDA concerned should ensure that for each house so constructed, a display board is fixed indicating the Government of India Rural Housing logo, year of construction, name of the beneficiary etc. The expenditure on this account can be met from the funds available under the scheme accruing due to interest. The cost of each logo should not exceed Rs.30/-.


5.11           Convergence with other Schemes:



(i)               The District Rural Development Agencies (DRDAs) will make concerted efforts to identify the programmes/schemes being implemented by various Ministries/Departments of the Central Govt., which could be dovetailed with Indira Awaas Yojana so as to ensure that IAY beneficiaries also derive the benefits of these schemes intended for rural BPL households. 


(ii)             As already provided in Para 3.2 above, there should be convergence with activities and funds provided under the Total Sanitation Campaign (TSC) for providing sanitary latrines in the IAY houses.  An IAY beneficiary who will construct a sanitary latrine will get an amount under TSC funds in addition to the unit assistance he has got under IAY.


(iii)           As provided in Para 3.2 above, IAY Scheme will be converged with Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) being implemented by the Ministry of Power for providing free electricity connections to BPL households in rural areas so that each IAY beneficiary could get a free electricity connection to his house.


(iv)           As already laid down in para 5.5 of the IAY Guidelines, the availability of drinking water supply to an IAY household should be ensured by the agencies responsible for the implementation of the Indira Awaas Yojana.   This can be ensured through convergence of the activities under National Rural Water Supply Programme (NRWSP) which is being implemented by the Department of Drinking Water Supply of this Ministry to provide every rural person with adequate water for drinking, cooking and other domestic basic needs on a sustainable basis.


(v)             The Reserve Bank of India has issued instructions to all the Nationalized Banks to disburse loans to IAY beneficiaries under Differential Rate of Interest (DRI) scheme.  As provided in Para 3.1 and 3.3 above, under DRI Scheme, an IAY beneficiary can borrow up to Rs.20,000/- from any Nationalized Bank at 4% interest per annum to top up the unit assistance he has got under IAY.  Through liaisoning with Nationalized Banks in the district, DRDA should render all possible assistance to IAY beneficiaries in procuring the top-up loans under DRI.


(vi)           Life Insurance Corporation (LIC) of India has Insurance Policies called Janshree Bima for rural BPL families and Aam Aadmi Bima for the benefit of rural landless families.  He DRDAs will furnished the particulars of all the willing IAY beneficiaries every month to the respective Nodal Agency which is implementing the Janshree Bima and Aam Aadmi Bima in the district so that all willing IAY beneficiaries derive the benefits available under these insurance policies.

(vii)         In addition to the above convergence of schemes, efforts may also be made to ensure that a jobless IAY beneficiary gets a job card under National Rural Employment Guarantee Act 2005 (NREGA) and Self Help Group (SHG) membership under SGSY. 


(viii)       For effective monitoring of the convergence of the above programmes/schemes, a Monthly Progress Report–3 (MPR-3) has been devised.   The DRDAs will spare no effort in liaisoning with all the nodal agencies implementing the aforesaid schemes in the district in order to bring about the actual convergence of these programmes at the field level, will capture the data and furnish the same to this Ministry on line every month in prescribed format1.















1.    Vide Ministry’s letter No. J-16013/1/2007-RH dated 23.2.2009







6.1     Monitoring


Officers dealing with the IAY at the State headquarters should visit districts regularly and ascertain through field visits whether the programme is being implemented satisfactorily and whether construction of houses is in accordance with the prescribed procedure. Likewise, officers at the district, sub-division and block levels must closely monitor all aspects of the IAY through visits to work sites. A schedule of inspection which prescribes a minimum number of field visits for each supervisory level functionary from the State level to the block level should be drawn up and strictly adhered to. The State Government should prescribe the periodical reports/ returns through which it should monitor the performance of IAY in the districts and also get appropriate reports and returns prescribed, to be collected by the Zilla Parishads/DRDAs. The monitoring of the programme at the State Level will be the responsibility of State Level Vigilance and Monitoring Committee for Rural Development Programmes. A representative or nominee of the Ministry of Rural Development, Government of India should invariably be invited to participate in the meetings of the Committee


A monthly progress report separately in respect of the Indira Awaas Yojana will be furnished to the Government of India by Telex/Fax/E-mail/ Nicnet in Proformae (MPR 1 to 3)1 on or before 10th of every succeeding month.






                1Vide Ministry’s letter No. J-16013/1/2007-RH dated 23.2.2009


6.2.     Evaluation Studies :



The Central Government may conduct periodic evaluation studies on the implementation of the Indira Awaas Yojana.  These Evaluation studies may be got conducted by  institutions and organizations of repute on the implementation as well as the issues thrown up by the Concurrent Evaluation, conducted by the Government of India.   The States/UTs may also conduct Evaluation Studies on their own regarding the implementation and impact of the programme in their State.  Copies of the reports of these evaluation studies conducted by the States/UTs should be furnished to the Government of India. Remedial action should be taken by the States/UTs on the basis of the observations made in these evaluation studies and also in the Concurrent Evaluation conducted by or on behalf of Government of India.


6.3.    Transparency in Implementation of Indira Awaas Yojana


6.3.1 This requires greater transparency in the implementation of the lAY at various levels and hinges on the assumption that people should have access to information about implementation of these programmes in all their aspects. Disclosure of information should be the rule and withholding of information an exception. List of items (illustrative not exhaustive) on which information should invariably be made available to people to bring about greater transparency at village, block and district level is given below.




(i)            List of people below poverty line in the village.

(ii)           Permanent IAY Waitlists both for SC/ST and non-SC/ST BPL households1.

(iii)     List of disaster resistant construction features suitable for the region/locality.



            1Vide Ministry’s Order No. H-11032/1/2005-RH dated 29.11.2005

(iv)    List of beneficiaries identified during preceding year and current year including details of SC/ST, women beneficiaries and physically/ mentally challenged persons under Indira Awaas Yojana.

(v)    Allocation made to the village under Indira Awaas Yojana.

(vi)   Guidelines of Indira Awaas Yojana/ criteria of selecting beneficiaries.

(vii)   Display of Indira Awaas Yojana signboard/ logo on the allotted houses.





(i)     Details of houses taken up at Block level with cost, sources of funds and implementing agency.

(ii)    Distribution of funds village-wise for the scheme.

(iii)    Allocation/availability of funds and progress in implementation of the Indira Awaas Yojana.






(i)      Distribution of the lAY funds block-wise/ village-wise for the scheme.

(ii)      Criteria for distribution of funds to blocks/ villages including norms for its selection under the Indira Awaas Yojana.











 7.1    There is a felt need for standardizing, popularizing and replicating cost-effective, disaster resistant and environment-friendly housing construction technologies, designs and materials and also developing ideal sustainable rural human settlements consistent with geo-climatic variations and natural disaster proneness. There is also a need for skill upgradation of rural artisans and other functionaries engaged in the field of rural housing and Habitat Development for adoption of cost effective technologies, materials etc.  For adoption of such technologies, necessary low cost material is also required to be reduced.


7.2     Development of Low Cost Rural Housing Technology through     RBC:


Under the Programme, efforts may be made to develop appropriate technologies and capacity building at the grassroot level in order to provide affordable house to the rural poor.  This objective can be achieved by making use of the already established Rural Building Centres (RBCs) either by the Ministry or by HUDCO for transfer of technology, dissemination of information, skill upgradation through training, production of cost-effective and environment-friendly material/components, assistance and guidance to rural households/IAY beneficiaries in adoption of cost effective technologies/materials in construction of their houses.



7.3     Monitoring of the on going Projects for their successful completion:


The implementation of the already sanctioned ongoing projects of Innovative Stream for Rural Housing and Habitat Development and Rural Building Centres (RBCs) shall be monitored by the Ministry of Rural Development. The implementing Agency will be required to furnish the physical and financial progress of the project on quarterly  basis regularly  in the  Proforma –III & IV respectively.  Further, it shall be open to the Ministry of Rural Development to get the projects verified by HUDCO/NLM/Area Officers/any other agency to facilitate the release of funds to implementing agencies and completion of the projects. The Ministry of Rural Development can get these projects evaluated at any time and by any agency, if it so desires.