CABINET APPROVES 3 CRORE ADDITIONAL HOMES UNDER PMAY

Why in the news?

The Cabinet’s approval for 3 crore new homes under PMAY boosts rural and urban housing, advancing India’s housing goals and supporting economic development through significant financial outlay.

CABINET APPROVES 3 CRORE ADDITIONAL HOMES UNDER PMAY - UPSCsource:pib

About the Cabinet’s Decision :

  • The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the construction of 3 crore additional houses under the Pradhan Mantri Awas Yojana (PMAY).
  • This includes 2 crore houses under PMAY-Gramin (PMAY-G) and 1 crore under PMAY-Urban (PMAY-U).
  • The implementation period is from April 2024 to March 2029, with a total outlay of Rs 3,06,137 crore. The central government’s share is Rs 2,05,856 crore, and the states’ share is Rs 1,00,281 crore.
  • Financial Assistance:
    • PMAY-G: Rs 1.20 lakh for plain areas and Rs 1.30 lakh for the North Eastern Region/Hill States per house.
    • PMAY-U: Includes schemes for beneficiary-led construction, affordable housing, and rental housing for workers and women.
    • Interest subsidy scheme for loans up to Rs 25 lakh for EWS and MIG families.
  • Program Continuation and Goals:
    • The new phase extends the PMAY-G scheme beyond March 2026, with ongoing evaluation by NITI Aayog and re-appraisal by EFC.
    • Completion of 35 lakh incomplete rental units by March 2024 to meet previous targets.
    • The program aims to address rising housing needs, with 2 crore more houses to be constructed in the next five years.
About Pradhan Mantri Awas Yojana (PMAY):

Overview:

  • Launched in 2015 by the Government of India.
  • Aims to provide affordable housing to urban and rural poor.
  • Vision: “Housing for All” by 2022, marking India’s 75th independence anniversary.
  • Centrally sponsored scheme with financial contributions from both Union and State governments.

Components:

PMAY-Urban (PMAY-U):

  • Target: Urban areas; addresses housing shortages for EWS (Economically Weaker Sections), LIG (Low-Income Groups), and MIG (Middle-Income Groups).

Approaches:

  • 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:

  • Target: Rural areas; provides affordable housing for the rural poor.
  • Goal: Construct durable houses with basic amenities for households without pucca (permanent) houses.

Budget Allocation:

  • Combined allocation for both rural and urban components: Rs. 80,671 crores in the interim budget of February 2024.

Associated Article:

https://universalinstitutions.com/an-overview-of-the-pmay-u-scheme/#:~:text=The%20PMAY%2DU%2C%20overseen%20by,to%20all%20eligible%20urban%20households