Housing for all
Prime Minister Narendra Modi's recent announcement of a new scheme to assist urban poor in building houses signals a change in government policy. However, despite this effort, the goal of "housing for all" remains distant, with only about two-thirds of the sanctioned houses completed or handed over in the eight years since PMAY-U's launch.
Highlights of PMAY-U:
- Nodal agency: Pradhan Mantri Awas Yojana (PMAY) falls under the Government’s mission – ‘Housing for all by 2022’ for urban housing being implemented by the Ministry of Housing and Urban Affairs (MoHUA).
- Significance: It makes home loans affordable for the urban poor by providing a subsidy on the Interest Rate of a home loan during repayment by way of EMI (Equated Monthly Installments).
- Beneficiaries: The Mission addresses urban housing shortage among the EWS/LIG and MIG categories including the slum dwellers, and a beneficiary family will comprise husband, wife, unmarried sons and/or unmarried daughters.
Points of proposed scheme
- Objective: A proposed scheme aims to lower the beneficiary share to around 40%, recognizing their limited income capacity.
- Aim: The scheme shift in stance comes after the extension of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) until December 2024.
- Fund allocation: The project amounts to Rs.1.49 lakh crore, with the government's share at 4%, states and urban bodies at 16%, and the remaining 60% expected from beneficiaries.
Parliamentary Committees’ recommendations
- Flexible assistance: The committee's key proposal is to replace the current uniform and fixed assistance approach with a flexible one that considers regional variations and factors like topography.
- To address issues of poor housing quality and unoccupancy: It suggests delving into reasons behind these problem such as high land costs, restrictions on floor space index, and complexities arising from multiple certifications by various agencies play pivotal roles in determining the success of urban housing initiatives.
- Involvement of stakeholders’: The government should facilitate discussions involving relevant stakeholders like state governments, local bodies, urban planning organizations, professionals, financial institutions, and activists.