3 Crore New Houses Approved Under PMAY: Addressing India's Housing Scarcity

What’s in today’s article?

• Why in News?
• Housing scarcity in India
• What is Pradhan Mantri Awas Yojana (PMAY)?
• What is Pradhan Mantri Awas Yojana – Gramin (PMAY-G)?
• What is Pradhan Mantri Awas Yojana - Urban (PMAY)?

Why in News?

Chairing the maiden Cabinet meeting of his third term, PM Modi approved government assistance for the construction of three crore rural and urban houses under Pradhan Mantri Awas Yojana (PMAY).

Of the three crore houses, two crore will be constructed under PMAY-Gramin, while 1 crore under PMAY-Urban.

Housing scarcity in India

• Currently, according to the government’s estimates, there is a shortage of around 20 million houses in rural areas and three million in urban centres.
• According to a study by the ICRIER, urban housing shortage increased by 54%, from 1.88 crore in 2012 to 2.9 crore in 2018.

What is Pradhan Mantri Awas Yojana (PMAY)?

• About
  • PMAY is a flagship housing initiative of the Government of India launched in 2015 with the aim of providing affordable housing to the urban and rural poor. 
  • The mission envisions "Housing for All" by the year 2022, marking the 75th year of India’s independence.
  • It is a centrally sponsored scheme both the Union and the State governments are supposed to financially contribute to it.
• Components:
  • PMAY-Urban (PMAY-U):
    • Targets urban areas to address housing shortages among the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG).
    • Focuses on the development of affordable housing through various approaches like:
      • In-situ Slum Redevelopment
      • Affordable Housing in Partnership (AHP)
      • Beneficiary-Led Individual House Construction/Enhancement
      • Credit-Linked Subsidy Scheme (CLSS)
  • PMAY-G or PMAY-Gramin
    • Focuses on providing affordable housing to the rural poor.
    • Aims to construct durable houses with basic amenities for households in rural areas who do not own a pucca house.
  • Budget allocation
    • Both components (rural and urban) of the PMAY combined received Rs. 80,671 crores in the interim budget released in February 2024.

What is Pradhan Mantri Awas Yojana – Gramin (PMAY-G)?

• About
  • The main aim of the scheme is to provide pucca house with some of the basic amenities. 
  • This scheme is meant for people who do not own a house and people who live in kutcha houses or houses which are severely damaged. 
  • At present, the minimum size of the houses to be built under the PMAY-G scheme is 25 sq. mt., with a hygienic cooking space.
  • Concerned Ministry: Ministry of Rural Development
• Cost Sharing: 
  • The cost of the unit is shared in a 60:40 ratio between the Central and State governments in plain areas, i.e., Rs. 1.20 lakh of assistance for each unit.
  • In the Himalayan states, north-eastern states, and the Union Territory (UT) of Jammu & Kashmir, the ratio is 90:10 with up to Rs. 1.30 lakh of assistance for each unit.
  • Media reports have said the Centre has decided to increase the cost of construction of the PMAY-G house from existing Rs 1.2 lakh to Rs 1.8 lakh in the plains and Rs 1.3 lakh to Rs 2 lakh in the hilly areas.
  • 100% financing from the Centre for Union Territories including the UT of Ladakh.
• Salient Features of the Scheme: 
  • Beneficiaries are identified using parameters from Socio-Economic and Caste Census (SECC) 2011 data and verified by Gram Sabhas.
  • Beneficiaries are entitled to 90/95 person-days of unskilled labour under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
  • Assistance for construction of toilets of up to Rs.12,000 to be provided under Swachh Bharat Mission-Gramin (SBM-G) in collaboration with MGNREGS or other schemes.
  • Payments are made electronically directly to bank accounts or post office accounts that are linked to Aadhaar.
• Performance
  • Out of the overall mandated target of 2.95 crore houses allocated to States/UTs under the PMAY-G, more than 2.94 crore houses have already been sanctioned to the eligible beneficiaries by the States/UTs.
  • 2.61 crore houses have already been completed.

What is Pradhan Mantri Awas Yojana - Urban (PMAY)?

• About:
  • Housing for All is one of the major flagship programmes of Government of India launched on 25th June 2015 and being implemented by the Ministry of Housing and Urban Affairs (MoHUA). 
  • It will ensure all weather pucca houses to all eligible beneficiaries in the urban areas of the country through States or UTs or Central Nodal Agencies by the year 2022, when Nation completes 75 years of its independence.
  • 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 or Development Areas. 
• Funding
  • It is implemented as a Centrally Sponsored Scheme (CSS) except for the component of credit linked subsidy scheme (CLSS) which is implemented as a Central Sector Scheme.
  • While the Government of India provides financial assistance, State governments or UTs implement the scheme including selection of beneficiaries.
• Some initiatives under PMAY-U:
  • Affordable Rental Housing Complexes (ARHCs): A sub-scheme under PMAY-U, it aims to provide ease of living to urban migrants or poor by giving access to dignified affordable rental housing close to their workplace.
  • Global Housing Technology Challenge - India (GHTC-India): It aims to identify and mainstream innovative construction technologies from across the globe for the housing construction sector that are sustainable, eco-friendly and disaster-resilient.
  • CLSS Awas Portal (CLAP): The portal facilitates processing of applications along with tracking of subsidy status by beneficiaries. 
  • ANGIKAAR: It is a campaign for social change management initiated by ‘Housing for All’ Mission in 2019. It has achieved the objective to build capacities of PMAY-U beneficiaries in adapting to change through door-to-door awareness on best practices.
• Extension of timeline
  • In August 2022, the government approved the continuation of the PMAY-U up to December 31, 2024, for the completion of already sanctioned houses till March 31, 2022.

Q.1. What is Centrally Sponsored Scheme (CSS)?

A Centrally Sponsored Scheme (CSS) is a program funded and implemented by the central government of India but executed by state governments. These schemes are designed to address issues of national importance and ensure uniformity in addressing key development goals across the country.

Q.2. What is What is Central Sector Scheme (CSS)?

A Central Sector Scheme is a program or initiative that is entirely funded and executed by the central government of India. These schemes are designed to address issues of national importance and are implemented by central government agencies or departments.

Source: In first decision, Cabinet nod to 3 crore rural, urban houses under Pradhan Mantri Awas Yojana | PIB |PMAY - U