New Scheme to Complement PMAY-U | 18 Aug 2023

Source: TH

Why in News?

Recently, Prime Minister in his address on 77th Independence Day, unveiled a new scheme aimed at alleviating the housing crisis faced by the urban poor.

• The new scheme complements the Pradhan Mantri Awas Yojana Urban (PMAY-U), a flagship government initiative launched in 2015.

What is Pradhan Mantri Awas Yojana Urban?

• About:
  • The PMAY-U, executed under the aegis of the Ministry of Housing and Urban Affairs (MoHUA), aims to tackle the acute shortage of urban housing among economically disadvantaged segments.
  • The mission's overarching goal is to provide "pucca" (durable and permanent) houses to all eligible urban households by 2022.
    • To achieve this, the scheme has been extended until December 2024 to ensure the completion of all sanctioned houses without altering the funding pattern and implementation methodology.
• Beneficiaries:The Mission addresses urban housing shortage among the EWS/LIG and MIG categories including the slum dwellers.
  • Economically Weaker Section (EWS) - with a maximum annual family income of Rs. 3,00,00
  • Low Income Group (LIG) - with maximum annual family income of Rs. 6,00,000 and
  • Middle Income Groups (MIG I & II) - with a maximum annual family income of Rs. 18,00,000
    • A beneficiary family will comprise husband, wife, unmarried sons and/or unmarried daughters
• Components of PMAY-U:
  • In-situ Slum Redevelopment (ISSR): The ISSR program offers Central Assistance of Rs. 1 lakh per dwelling for qualified slum residents during redevelopment, utilizing land as a resource in collaboration with private developers.
    • States/Cities have the flexibility to allocate this Central Assistance to other slum redevelopment projects.
  • Credit Linked Subsidy Scheme (CLSS): The CLSS aids beneficiaries from EWS/LIG, Middle Income Group (MIG)-I, and MIG-II seeking housing loans for buying, constructing, or enhancing homes.
    • These individuals can avail interest subsidies of:
      • 6.5% on loan amount up to Rs. 6 Lakh
      • 4% on loan amount up to Rs. 9 Lakh
      • 3% on loan amount up to Rs. 12 Lakh
    • Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB), and State Bank of India (SBI) are the designated Central Nodal Agencies (CNAs) responsible for channeling the subsidy through lending institutions and monitoring progress.
  • Affordable Housing in Partnership (AHP):
    • AHP provides Central Assistance of Rs. 1.5 Lakh for each Economically Weaker Section (EWS) dwelling by the Government of India.
    • Affordable housing projects can include various categories, but they qualify for Central Assistance if at least 35% of the homes target the EWS category.
    • States/UTs set an upper ceiling on the sale price of EWS homes to ensure affordability.
  • Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E):
    • Qualified Economically Weaker Section (EWS) families receive up to Rs. 1.5 lakh as Central Assistance for constructing or enhancing individual houses.
    • Urban Local Bodies verify the beneficiary's submitted information and building plan to confirm land ownership, economic status, and eligibility.

• Progress:
  • As of the most recent update, a total of 118.9 lakh houses have been completed under the PMAY-U initiative, out of which 76.25 lakh are occupied.
• Related Initiatives:
  • Affordable Rental Housing Complexes (ARHCs): MoHUA has initiated ARHCs, a sub-scheme under PMAY-U.
    • This will provide ease of living to urban migrants/ poor in the Industrial Sector as well as in the non-formal urban economy to get access to dignified affordable rental housing close to their workplace.
  • ANGIKAAR Campaign: It focuses on adopting best practices such as water & energy conservation, waste management, health, sanitation and hygiene for PMAY(U) beneficiaries through community mobilization and IEC activities.
    • The campaign was formally launched on 2nd October, 2019, commemorating 150th Gandhi Jayanti.
  • GHTC India: MoHUA has initiated the Global Housing Technology Challenge - India (GHTC India) which aims to identify and mainstream a basket of innovative construction technologies from across the globe for the housing construction sector that are sustainable, eco-friendly and disaster-resilient.