CNBCTV18 - An increased PM Awas Yojana (PMAY) allocation towards low-cost housing and a credit- guarantee scheme for MSMEs in Budget 2023 signals good news for development of low-cost homes. Read more
The Pradhan Mantri Awas Yojna (PMAY) is an initiative of the Government of India which aimed at providing affordable housing to the urban poor by the year 2022. The scheme was first launched on 25th June 2015. The implementation period of the PMAY-Urban scheme has been extended until 31st December 2024.
Features: Under this scheme, a subsidy interest rate is provided at 6.50% on housing loan for the term of 20 years to all the beneficiaries.
The scheme covers entire urban areas in the country, which includes 4041 statutory towns, with the first priority given to 500 Class I cities. This will be done in 3 phases.
Beneficiaries - This scheme caters mainly to the housing requirements of the urban poor. The scheme also caters to the housing requirement of slum dwellers residing in confined areas of slums with inadequate infrastructure, poor sanitation and drinking facilities.
Beneficiaries of this scheme mainly include Middle Income Groups (MIGs), Low Income Groups (LIGs) and Economically Weaker Section (EWS).
While the beneficiaries from the EWS category are eligible for complete assistance under the scheme, beneficiaries from LIG and MIG categories are only eligible for credit link subsidy scheme under PMAY.
Differently abled and senior citizens will be given preference in allocation of ground floors. Sustainable and eco friendly technologies would be used for construction.
Types: There are two sub-sections of the PMAY scheme which are divided on the basis of the area on which they focus:
Pradhan Mantri Awas Yojana Gramin: It was previously known as the Indira Awas Yojna and was christened as PMAY-G in 2016. The scheme is aimed at the provision of affordable and accessible housing units eligible beneficiaries in rural regions of India (excluding Chandigarh and Delhi). Under the scheme, the Government of India and the respective state governments share the cost of development of housing units in the ratio of 60:40 for plain regions and 90:10 for North-Eastern and hilly regions.
Pradhan Mantri Awas Yojana Urban: It is, as the name suggests, focussed towards the urban areas in India. At present, there are 4,331 towns and cities which are enlisted under the scheme. The scheme is set to function under three different phases:
Phase 1: Under Phase 1, the government targeted to cover 100 cities in different states and UTs across the country from April 2015 to March 2017.
Phase 2: Under Phase 2, the government targeted to cover 200 more cities in different states and UTs across the country from April 2017 to March 2019.
Phase 3: Under Phase 3, the government is targeting to cover the cities which have been left out in Phase 1 and Phase 2 and attain the target by the end of December 2024.
In Union Budget 2023, on Wednesday, Finance Minister Nirmala Sitharaman announced a whopping 66% enhancement in budgetary allocation towards PMAY or the 'Housing for All' scheme. The outlay for PM Awas Yojana is being enhanced by 66% to over Rs.79,000 crore.
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