PMAY - GOVERNANCE

News: In first meet, Cabinet okays 3 cr new houses under PMAY

 

What's in the news?

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

 

Key takeaways:

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

       After the Cabinet meeting an official source said, “It has been decided in the Cabinet meeting today to provide assistance to three crore additional rural and urban households for the construction of houses, to meet the housing requirements arising out of the increase in the number of eligible families.”

 

Pradhan Mantri Awas Yojana:

       Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme initiated to provide affordable housing to low and moderate-income residents across the country.

       The newly formed government has approved the proposal to provide 3 crore additional rural and urban houses under PMAY.

 

Components of PMAY:

The scheme has two components - PMAY-U for the urban poor and PMAY-G and PMAY-R for the rural poor.

1. PMAY-U (Urban):

Objective:

       To provide pucca houses for all in urban areas.

 

Beneficiaries:

       Economically Weaker Section (EWS)

       Low-Income Group (LIG)

       Middle-Income Group (MIG)

 

Subsidy Schemes:

       Credit Linked Subsidy Scheme - Offers interest subsidy on home loans for EWS, LIG, and MIG categories.

       In-Situ Slum Redevelopment - Utilizes land as a resource to provide houses to eligible slum dwellers.

       Affordable Housing in Partnership - Promotes partnerships with public and private sectors to provide affordable housing.

       Beneficiary-Led Construction - Provides financial assistance to individuals to construct or enhance their own houses.

 

2. PMAY-G (Gramin):

Objective:

       To provide a pucca house with basic amenities to all rural families who are homeless or living in kutcha or dilapidated houses.

 

Beneficiaries:

       Identified using the Socio-Economic and Caste Census (SECC) 2011.

 

Features:

       Financial Assistance - Rs. 1.2 lakh in plain areas and Rs. 1.3 lakh in hilly, difficult, and Integrated Action Plan (IAP) areas.

       Construction - Houses are to be constructed by beneficiaries with technical assistance from the government.

       Convergence with Other Schemes - Encourages convergence with other schemes like Swachh Bharat Mission (SBM) for toilet construction, and MGNREGA for wage employment.

 

Important Takeaways:

PMAY-G:

Under the PMAY-G, each beneficiary gets funds up to Rs 1.2 lakh in the plains and Rs 1.3 lakh in hilly states, difficult areas, and tribal and backward districts under the Integrated Action Plan (IAP).

       The Centre has decided to increase the assistance provided to the beneficiaries under the PMAY-G by about 50 percent.

       The Centre has also 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.

       These additional 2 crore PMAY-G houses will be over and above the 2.95 crore houses sanctioned under the rural scheme since its inception in 2016.

       Of these 2.95 crore, 2.61 crore have been built under the PMAY-G till date.

       The Centre and states share expenses in 60:40 ratio in case of plain areas, and in 90:10 ratio for northeastern states, two Himalayan states and the UT of Jammu and Kashmir.

       The Centre bears 100 percent cost in case of other Union Territories, including the UT of Ladakh.