There were apartments like these which were constructed for this class of people about 40 years ago at Chennai by the Government of Tamilnadu. Very successful experiment. These apartments were constructed by the Slum Clearance Board which really enabled a colony of slum live in high rise buildings with water and drainage facilities. It was all in the centre of the city.

Reducing the cost of construction of low cost flats have to be done across different programs and at various stages of the building. Let us say raising a wall is a program. It has doors, windows, lofts and shelves attached to it. Similarly, roofing is a program and so is flooring. When we split the construction into such smaller programs, the opportunity to identify cost heads and apply the right tools and technology to reduce cost is quite high. A wall could be considered in its parts as to what are the different cost elements which go into it. Each of these cost elements should have good alternatives which do not compromise on quality but still affordable - though low on appeal. A wall needs to be strong to be safe. Now, we should consider how to deliver strength without being expensive. Options would come up.

There are quite a few builders who create affordable homes and they use such cost effective techniques which do not compromise on the end benefit but make it affordable too. They know the story better on these aspects. Likewise, flooring is supposed to offer a consistent flat level, smooth and firm enough to walk or place things. We can now consider the kind of materials that could be used to offer the same. It is not just the materials, it is also the sourcing of these which adds to the cost. Hence, identify the right sources that would offer economies of scale. By getting into these details the normal construction cost per sft. which is around Rs. 2200 in an A class metro should be brought down to less than 40% of the total cost per sft. Therefore, broadly, the construction of a 500 sft . apartment could be completed in less than Five Lakhs of rupees.

Typically these buildings should not be more than four floors high. Single bedroom or two bedroom over an area of 500 - 700 sft. should be adequate for a small family of three or an extended family of five. Bathrooms could be on either side of the wall of two flats using a single drainage line. Open kitchens too save a lot of cost. A creative way of completing a kitchen platform over an area of 5ft by two feet with provisions for placing the gas cyllinder, drain and storage should be a thrill for the woman of the house hold. An open kitchen also reduces the no. of main doors used in the household to two or three as the case may be (not including the bathroom doors).

The challenge now would be the cost of land and how to achieve this in a place like Mumbai. This is where the builder should seek the help of the government. If the builder can place a strong proposition on the table and ask for participation of the government to allot space within the localities where the slums are situated, it should be possible to get these lands at affordable costs. When apportioned among the inhabitants of these flats the cost of land per apartment should not exceed 5-8% of the cost of the apartment. The government should also offer a suitable FSI limit for these constructions as a special case.

Let us imagine that flat cost ends up between Rs. 5.50 - Rs. 7.50 Lakhs. My security guard is now hopeful but he needs to work out his annual house hold income to take a loan. Typically, security guards earn about Rs. 5000/- a month in an A class metro. His wife works as domestic maid in about five households at Rs. 1000/- each and pools in Rs. 5000/-. Their annual income is now Rs. 1,20,000/-. If he is currently paying a rent of Rs. 3000/- to the accomodation in which he is staying, he should be able to get a loan that offers him an EMI within Rs. 3000/-. Here again the government should seek the help of nationalised banks to offer subsidised loans to this segment of people.

A joint effort among three large service providers - the Construction company, the Government and the Banks - can more than accomplish this pleasant task. Suddenly the whole thing looks feasible and the security guard at my gate is delighted. His eyes light up when he says, " Now I can leave something behind for my wife and the next generation".