Continuation of Pradhan Mantri Awas Yojana-Urban (PMAY-U)

In News

• Recently, the Union Cabinet has approved the proposal of the Ministry of Housing and Urban Affairs (MoHUA) for continuation of Pradhan Mantri Awas Yojana-Urban (PMAY-U). 

Key Points

• PMAY-U will be continued up to 31st December 2024.
• The financial assistance is to be provided for the completion of already sanctioned 122.69 lakh houses till 31stMarch 2022.

Image Courtesy: PMAY 

Pradhan Mantri Awas Yojana-Urban (PMAY-U)

• About: 
  • Housing for All is one of the major flagship programmes being implemented by the Government of India (GOI).
• Aim: 
  • To provide all weather pucca houses to all eligible beneficiaries in the urban areas of the country through States/UTs/Central Nodal Agencies. 
• Coverage: 
  • The scheme covers the entire urban area of the country, i.e., all statutory towns as per Census 2011 and towns notified subsequently, including Notified Planning/ Development Areas. 
• Implementation: 
  • The scheme is being implemented through four verticals: 
    • Beneficiary Led Construction/ Enhancement (BLC), 
    • Affordable Housing in Partnership (AHP), 
    • In-situ Slum Redevelopment (ISSR) and 
    • Credit Linked Subsidy Scheme (CLSS). 
• Financial Assistance: 
  • While the Govt of India provides financial assistance, State Govt/UTs implement the scheme including selection of beneficiaries.
• Latest decision:
  • Based on the requests from the States/UTs, the Union Cabinet decided to extend the implementation period of PMAY-U till 31.12.2024.

Issues /Challenges

• PMAY-U’s Credit Linked subsidy scheme (CLSS) component offers interest rate subvention on housing loans borrowed by the Economically Weaker Section (EWS), low and middle-income groups. 
  • However, the subvention amount is insufficient for private housing in major urban centres of tier-I cities.

• The government-driven EWS projects are mainly located on the periphery of cities, far away from the city’s key economic centres.
  • These places are marked by a general lack of transport connectivity and other infrastructure facilities. This combination results in a lack of takers for these housing units.

• Slum redevelopment and EWS projects have made little progress for a lack of private sector interest. 

Way Ahead

• New construction technologies, which are adaptable, sustainable and low cost, can be used for creating large-scale affordable housing at a rapid pace and reach out to a larger audience.
• For maintaining an adequate supply of land, it is imperative that necessary changes in land-use change policies are introduced at the state level.
• Given the overall financial implications for India, measures are certainly needed to ensure prudence and seek permanent solutions.
• PMAY must be made accessible to more people and there should be increased awareness.

Source: PIB