The poorest in the rural areas of the country still require government assistance for catching up with the mainstream.  To enable the poor, mostly those below the poverty line, to access safe and secure habitats, there is a need for targeted credit cum subsidy schemes such as interest free loans where social capital of the poor and solidarity of marginalised people stand as guarantees for credit groups.  The National Employment Guarantee Scheme, if linked with social housing mechanisms can offer a tremendous opportunity for engaging the poor in productive work towards development of rural areas through infrastructure development and support the repayment of loans by the poor. While 100 days of employment is not adequate for repayment of the housing loans, it can be effectively used to create “marketable skills”, especially in the construction sector that can be used by the beneficiaries to engage in sustainable livelihood activities.  In the process, the scheme can result in the creation of village infrastructure - roads, drainage systems, village institutional buildings and work-places for small enterprises. 

        The emerging “rural middle class” comprising families that have moved above the poverty line to a reasonable standard of living, when facilitated through flexible credit schemes of other formal finance institutions, have a strong potential for self help. This is an important learning from the State Bank of India’s Sahayog Niwas Scheme. 

        Acceleration in development of rural habitations is possible only if the people can be aggregated into Common Interest Groups.  Such aggregation will have to be taken up by rural institutions such as the Panchayats and Community Based Organizations.  Aggregation of families enables technical and financial service providers to render their services in an economically viable manner as demonstrated by the Bundelkhand Rural Habitat programme of DA mentioned above. 

        The Centre and State governments need to strengthen the facilitator role of grassroots agencies, primarily the Panchayats and CSOs. Technical institutions need to be identified for technical guidance and support especially to the Panchayats to successfully carry out the total and independent responsibility for habitat planning and implementation as envisaged in the 73rd Constitutional Amendment. The National Employment Guarantee Scheme will draw a lot of rigor if operationalised through the local Panchayats that can channel human effort and resources for local habitat and infrastructure development.

        Delivery agents such as masons and other artisan groups need to be bolstered for development of safe habitats using local materials and services. Key technical institutions need to be identified across the country for developing the capacities of local actors: artisans groups, ITIs, polytechnics and governance institutions so that certified, skilled manpower is available on a continuous basis for construction of safe habitats.  Private sector, especially cement companies, can be a strong partner for creating local capacities for safe construction.

        Locally managed Building Materials and Service Banks can be set up where individual and group enterprises come together to respond to the local construction needs in  a profitable manner.  Such centres continue to supply locally produced high quality building materials while providing jobs to the local people as seen in post-cyclone Orissa.