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Pradhan Mantri Awaas Yojana – Housing

For All

Housing for All by 2022 Scheme

The Government in the President’s address in the Joint Session of Parliament in

May 2014 had announced that “By the time the nation completes 75 years of its

Independence (by 2022), every family will have a pucca house with water

connection, toilet facilities, 24×7 electricity supply and access”

In pursuance to this Pradhan Mantri Awaas Yojana-Housing for all was launched

by Prime Minister Mr. Narendra Modi Ji on 1 June 2015. Under this scheme,

affordable houses will be built in all cities and towns using eco-friendly

construction methods for the benefit of the urban poor population in India.

A similar scheme, Pradhan Mantri Awaas Yojana (Gramin) was also launched, for

rural population, later on in pursuance to the goal of “Housing for all by 2022”.

Why is it important?

Shelter is a prime necessity for Human survival

We all need a house to ensure basic standards of living and to build a better

civilization.

To own a house is still a dream for majority of Indians due to financial

constraints. The scheme will provide financial assistance to poor.

The Housing sector is the engine of economic growth and a vital sector of the

economy. The scheme is intended to give boost to the housing sector.

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Pradhan Mantri Awaas Yojana (Urban)

The Pradhan Mantri Awas Yojana (Urban) Programme launched by the Ministry of

Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode aims at

providing affordable housing to the urban poor.

Target

The mission aims at providing “Housing for All” by 2022 when the Nation

completes 75 years of its Independence.

Under PMAY, it is proposed to build two crore houses for urban poor including

Economically Weaker Sections (EWS), Low Income Groups (LIG) and Middle

Income Groups (MIGs) in urban areas by the year 2022 through a financial

assistance from central government.

Coverage and timeline

All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities would

be covered in three phases as follows:

Phase I (April 2015 – March 2017) to cover 100 Cities selected from States/UTs

as per their willingness.

Phase II (April 2017 – March 2019) to cover additional 200 Cities

Phase III (April 2019 – March 2022) to cover all other remaining Cities

Components

The Mission seeks to address the housing requirement of urban poor including

slum dwellers through following programme verticals:

Slum rehabilitation of Slum Dwellers with participation of private developers

using land as a resource

Promotion of Affordable Housing for weaker section through credit linked

subsidy

Affordable Housing in Partnership with Public & Private sectors

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Subsidy for beneficiary-led individual house construction or enhancement

Components of PMAY (Urban)

Implementation Strategies of PMAY (Urban)

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Targeted group of beneficiaries

Indian women of all religions and castes. Everyone will be equally eligible no

biased treatment on basis of caste or religion.

People who come from low income and economically weaker sections of the

society.

SC (Scheduled Castes) and ST (Scheduled Tribes).

Eligibility criteria

The mission seeks to address the housing requirement of urban poor including

slum dwellers.

Beneficiaries include economically weaker section (EWS), low-income groups

(LIGs) and Middle Income Groups (MIGs).

A beneficiary family will comprise husband, wife, unmarried sons and/or

unmarried daughters.

The beneficiary family should not own a pucca house either in his/her name or

in the name of any member of his/her family in any part of India.

States/UTs, at their discretion, may decide a cut-off date on which beneficiaries

need to be resident of that urban area for being eligible to take benefits under

the scheme.

Objectives

Ensure that the housing requirements of all urban poor including slum dwellers

are met through different Programme verticals.

The core objective is to provide central assistance to implementing agencies

through States and UTs for providing houses to all eligible families/ beneficiaries

by 2022.

Provide pucca house with water connection, toilet & electricity facilities.

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Ensure that urban localities are slums free & that all citizens have access to

basic services.

Provide houses designed and constructed to meet requirements of structural

safety against earthquake, flood, cyclone, landslides etc. conforming to the

National Building Code (NBC) and other relevant Bureau of Indian Standards

(BIS) codes

Primary Features

Development of Slum Areas – slum areas are to be developed under this

scheme with the help of private participation using land as a resource.

Interest Subsidy – The government will provide an interest subsidy of 6.5% on

housing loans availed by the LIG and EWS groups beneficiaries and an interest

subsidy of 3-4% on housing loans availed by MIG beneficiaries under credit link

subsidy scheme (CLSS).

Pro-Women – The scheme is pro-women as preference will be given to females

applicants for house allotments.

Disabled Friendly – Ground floor of the houses will preferably be given to

physically differently abled or to senior citizens.

Eco-Friendly – Construction developers should strictly follow eco-friendly

development technologies.

Affordability – Grant subsidy range anywhere between INR 1 lakh and INR 2.30

lakh to LIG and EWS section of urban population.

Pradhan Mantri Awaas Yojana (Rural)

In pursuance to the goal – Housing for all by 2022, the rural housing scheme

Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana (Gramin)

w.e.f. 1st April 2016. Under the scheme, financial assistance is provided for

construction of pucca house to all houseless and households living in dilapidated

houses in rural areas.

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Target

Under the scheme, it is proposed to build four crore pucca houses in total, by

the year 2022

One crore households would be provided assistance for construction of pucca

house during the first phase, from 2016-17 to 2018-19.

Identification of beneficiaries

To ensure that assistance is targeted at those who are genuinely deprived PMAY-

G selects beneficiary using housing deprivation parameters in the Socio-Economic

and Caste Census (SECC), 2011, which is to be verified by the Gram Sabhas.

Identification of beneficiaries eligible for assistance and their prioritisation is

done using information from Socio-Economic and Caste Census (SECC) ensuring

total transparency and objectivity.

The SECC data capture specific deprivation related to housing among

households.

The list will be presented to Gram Sabha to identify beneficiaries who

have been assisted before or who have become ineligible due to other reasons.

Funding

The cost of unit assistance is to be shared between Central and

State Governments in the ratio 60:40 in plain areas and 90:10 for North

Eastern and hilly states.

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Features

Identification of Beneficiaries – The selection of beneficiaries has been through

a completely transparent process using the Socio-Economic Census 2011 data

and validating it through the Gram Sabha.

Unit Size – The minimum unit (house) size is enhanced from 20 sq. mtr. (Under

IAY) to 25 sq. mtr. Including a dedicated area for hygienic cooking.

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The finished houses come complete with facilities like toilets, liquefied

petroleum gas connection, electricity connection, and drinking water availability

Financial Assistance – The unit assistance given to beneficiaries under the

programme is Rs 1,20,000 in plain areas and to Rs 1,30,000 in hilly

states/difficult areas /Integrated Action Plan (IAP) for Selected Tribal and

Backward Districts.

Optional Loan – There is also a provision of Bank loan upto Rs. 70,000/-, if the

beneficiary so desires.

Direct Benefit Transfer – The faster completion of quality houses has been

assisted by payment of assistance directly into the beneficiary account through

IT-DBT platform.

AwaasSoft – In PMAY-G, programme implementation and monitoring is to be

carried out through an end to end e-Governance model- Using AwaasSoft and

Awaas App.

Geo-Tagging – Space technology and IT platforms are being used to monitor the

cycle of house construction, right from identification of beneficiary to

construction stages of houses to completion and each stage is being geo-tagged

Social Audit – The programme implementation is to be monitored not only

electronically, but also through community participation (Social Audit), Member

of Parliament (DISHA Committee), Central and State Government officials,

National Level Monitors etc.

NTSA – Towards better quality of construction, setting up of a Nation Technical

Support Agency (NTSA) at the national level is envisaged.

Convergence with Swaccha Bharat Mission – Provision of assistance (Rs.

12,000/-) for toilets through convergence with Swaccha Bharat Mission

Convergence with MGNREGA – The beneficiary is entitled to 90 days of

unskilled labour from MGNREGA.

Convergence with Skill India – To ensure good quality of house construction,

Rural Mason Trainings have been organized to facilitate availability of trained

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masons in the rural areas. The programme provides for skilling 5 lakh Rural

Masons by 2019

Progress Report of PMAY (Gramin) as on November 15, 2017

Challenges in implementation of PMAY-HFA

Builder led Redevelopment – One of the reasons for laggardly implementation

of the PMAY (Urban) is its heavy reliance on the private sector – Most of the

sub-schemes depend on private builders who are reluctant in constructing

houses for the poor

Delay in Clearance – Delay in clearance for construction projects

High cost of construction – The central funding of the scheme is grossly

inadequate for constructing houses in metros. Cost of constructing EWS-LIG

houses is up to 8 lakh in metros. Even after an interest subsidy under the credit

link subsidy scheme, this is not affordable for the poor.

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Insufficiency of Funds – one major challenge is Insufficiency of funds, significant

gaps between allocation and releases, and under-utilisation of released

amount.

Reluctance of State Administration – States have their own priorities and may

not allocate enough funds to this scheme

Poor implementation – Among the larger states, Uttar Pradesh and Haryana

have not even started off PMAY on ground. Most of the northeastern states and

all Union territories have a similarly poor show

Scarcity of Land – Availability of land to construct houses remains a major

challenge due to scarcity of land

Poor track of Land Records – Land records in India are in very poor condition. In

absence of title or ownership records for land one cannot avail interest subsidy

to construct the house

Duplication – Single person getting multiple housing benefits. People with

allotted homes are selling or renting their houses and moving back to the slums

Way forward and recommendations

States need to digitize and simplify the process of updating property records.

This will allow all citizens to obtain legal documents to their land and property.

single window clearance

Create awareness on multiple verticals of the Pradhan Mantri Awaas Yojana

(PMAY) across all states through various channels like Nukad Natak (street

plays), digital media campaigns etc.

Monitor milestones and time lines of implementation of projects under PMAY

Create a master central database of all beneficiaries under various housing

schemes across states, to prevent the same person from availing multiple

benefits

Bringing reforms in rental market in India

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Conclusion

A house is the most basic necessity for mankind to live a life of dignity. But, to

own a house is still a dream for majority of people in India due to financial

constraints. In this regard, Pradhan Mantri Awaas Yojana, with both of its Urban

and Rural components, is a huge step forward to ensure affordable housing for

poor in India. However, there are many lacunas in its implementation as

mentioned above, which will have to be addressed at the earliest to make this

mission successful.

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