The Union Cabinet in June 2024 announced an assistance of 3 crore additional houses by 2029 under the government’s PMAY-U and PMAY-G schemes. The government’s ‘Housing for All’ mission has made significant progress since its launch. Over 4.21 crore houses have been successfully sanctioned so far.

The government of India launched the PMAY (Urban) – ‘Housing for All’ mission in 2015 and the PMAY Gramin scheme in 2016. The schemes are aimed at providing affordable housing to homeless citizens of urban and rural areas, respectively, by offering central monetary assistance and providing loans at low interest rates.

Although there is still much more to achieve, both schemes have come a long way in realizing the government’s vision of ‘Housing for All’ by ensuring that every family has access to a safe and permanent dwelling. These initiatives contribute to social welfare, economic growth, and sustainable urban and rural development.

Achievements of PMAY-Housing for All Mission So Far

The PMAY scheme has already made some significant achievements while it continues making efforts to ensure housing for all:

1. Achievements of PMAY-G

• Out of the mandated target of 2.95 crore house allocations under PMAY-G, 2.94 crore houses have already been sanctioned, and 2.63 crore houses are completed.
• For the financial year 2024-25, a budget of Rs. 54,487 crores have been allocated for PMAY-Gramin.
• The scheme is empowering women as female members are getting preference as joint household owners or beneficiaries.
• Under PMAY-G, over 26% of houses have been allocated to female members and over 46% of houses to joint household owners (Husband and Wife).

2. Achievements of PMAY-U

• Under PMAY-U, 1.18 crore houses have been sanctioned and 83.67 lakh houses completed so far.
• The mission involves a total central assistance of Rs. 2 lakh crores. Out of this, around Rs. 1.63 lakh crores central assistance has been released so far.
• For the financial year 2024-25, a budget of Rs. 26,171 crores have been allocated for PMAY Urban.
• With a total interest subsidy of Rs. 58.8 crores under CLSS, over 25 lakh beneficiaries received the benefits of the scheme.
• Around 16 lakh houses are under construction and are being built using new technologies under PMAY-U.

How is PMAY Urban and PMAY-Gramin Helping Achieve ‘Housing for All’?

A: PMAY-U

The PMAY (Urban) mission is being implemented based on four key verticals, which include:

1. ISSR (In Situ Slum Development)

With this concept of ‘Land as a Resource,’ the government is focusing on providing houses to eligible slum dwellers. The central government is offering assistance of Rs. 1 lakh per house for all slum residents eligible under ISSR. Around 2.96 lakh houses have been sanctioned under ISSR so far.

2. CLSS* (Credit Linked Subsidy Scheme)

Under the PMAY scheme, the government is also offering loans of up to Rs. 12 lakhs at low interest rates for building, rebuilding, or improving homes.  The beneficiaries under this scheme include EWS (Economically Weaker Sections), LIG (Low-Income Groups), and MIG (Middle-Income Groups) I and II.

Here, MIG I refer to people having an annual income between Rs. 6 lakhs to Rs. 12 lakhs, and MIG II refers to people having an annual income between Rs. 12 lakhs to Rs. 18 lakhs. These beneficiaries are eligible for:

• 5% interest on loans of up to Rs. 6 lakhs
• 4% interest on loans of up to Rs. 8 lakhs
• 3% interest on loans of up to Rs. 12 lakhs

*CLSS operations were discontinued on 31^st March 2021 for MIG I and II and on 31st March 2022 for EWS and LIGs. Although CLSS was discontinued, it left a lasting impact with over 23.9 lakh houses sanctioned under its provisions. It is now being replaced by the new home loan interest subsidy scheme.

3. AHP (Affordable Housing Through Partnership)

Under AHP, the Indian government is offering assistance of Rs. 1.5 lakhs for every EWS housing. The aim is to provide financial assistance to EWS houses that are being constructed under partnership models by states, UTs, or cities. Around 15.7 lakh houses have been sanctioned under AHP so far. However, this comes with specific eligibility criteria as follows:

• The project should have at least 250 houses.
• The project may include a mix of houses, but at least 35% of these houses should be from the EWS category.
• SC, ST, OBC, physically handicapped people, senior citizens, minorities, transgenders, single women, and other weaker sections are given priority under AHP.

4. BLC (Beneficiary Led Individual House Construction)

Under BLC, houses from the EWS category are eligible for central assistance of Rs. 1.5 lakhs for the construction and enhancement of homes. The urban local bodies determine the land ownership and eligibility information. Around 74.9 lakh houses have been sanctioned under the BLC so far.

B: PMAY-G

The PMAY (Gramin) scheme is being implemented using the Socio-Economic and Caste Census (SECC) and verified by Gram Sabhas. The Government introduced this scheme for homeless people and those living in severely damaged or temporary houses (kutcha makan) with the aim of:

• providing pucca houses (solid, permanent structures) along with basic amenities to these individuals by 2024.
• addressing the housing crisis faced by vulnerable populations.

Summing Up

More than 7.8 crore people live in slums throughout India, and this has become a major housing issue for the country. The government’s Housing for All mission has already come a long way in providing housing solutions to the underprivileged. More than 2.94 crore and 1.19 crore houses have been sanctioned so far under PMAY-U and PMAY-G respectively. Out of this, over 94 lakh houses are registered in the name of women.

The increased budget allocation, subsidies, and construction of more houses for rural and urban poor populations, shows that the extension of the new PMAY scheme is a step in the right direction by the government to ensure the fulfillment of the ‘Housing for All’ mission.

Author: Aditya Mangesh Raikar, Business Development Leader, IMGC

*Sources:

https://pmayg.nic.in/netiayHome/home.aspx

https://pmay-urban.gov.in/