The main objective of Pradhan Mantri Awas Yojana (Urban) is to meet the housing needs of urban poor including the slum dwellers. The other key components of this housing programme are listed below in addition to the Easy Understanding Of Pradhan Mantri Awaas Yojana – Urban.
- In-situ and ex-situ slum rehabilitation with the participation of private developers.
- Credit-linked subsidy for affordable housing to the poor.
- Affordable housing in partnership with the private sector
- Subsidy for individuals for the construction of the house.
The beneficiaries of the centrally sponsored scheme include Economically Weaker Section (EWS), low-income groups (LIGs) and Middle Income Groups (MIGs). The annual income limit is up to Rs 3 lakh for EWS, Rs 3-6 lakh for LIG and Rs 6-18 lakhs for MIG. EWS category of beneficiaries stands eligible for assistance in all verticals of the Mission. LIG and MIG categories are eligible under only Credit linked subsidy scheme (CLSS) component of the Mission. The identification is done on the basis of self-certification or affidavit submitted by the individual at the time of applying for a loan. Besides, the beneficiary family should not own a pucca house either in his name or in the name of any member of his family.
Coverage and Phases
The Pradhan Mantri Awaas Yojana – Urban (PMAY-U) covers 4041 statutory towns as per Census 2011. The focus is on 500 class-I cities.
It has three phases of execution:
- 1st Phase (April 2015 – March 2017) to cover 100 Cities selected from States/ UTs as per their willingness.
- 2nd Phase (April 2017 – March 2019) to cover additional 200 Cities
- 3rd Phase (April 2019 – March 2022) to cover all other remaining Cities
Size Of The House
The mission of Pradhan Mantri Awaas Yojana – Urban supports the construction of the houses up to 30m² carpet area along with all basic amenities. The states and union territories have the freedom to determine the sizes of houses and other facilities.
In Situ Slum Redevelopment
One of the main components of this scheme is the in-situ slum redeveloped based on Land as a resource with the participation of the private sector for providing houses to eligible slum dwellers. Under this component, the slums are developed in-situ and provided pucca (brick and mortar) houses in the same land. Such land, whether that of the central government or state government or local body, must be denotified.
Credit Linked Subsidy
Under this component, the loan value up to Rs. 6 Lakh with an interest rate of 6.5 percent for 20 years or more is provided to beneficiaries. The total interest subsidy under this scheme is Rs. 2.30 Lakh. The houses for availing this subsidy should be less than 30 sq meters in the carpet area. Besides, women, SC, ST, manual scavengers & PwD are more preferred.
From 2017, the credit linked subsidy scheme is also available to the tax paying middle-class population who do not own a pucca house. The people with income between 6 and 18 Lakhs per annum are now eligible to get low-interest loans for MIG houses. The carpet area of houses in such cases is fixed at maximum 120 sq mt for income up to 12 Lakh and 150 sq mt for income up to 18 Lakh per annum. This is expected to give a big push to the real estate sector to enter into affordable housing projects under Pradhan Mantri Awaas Yojana – Urban.
Affordable Housing Through Partnership
Under this component, the government provides financial assistance up to Rs. 1.5 Lakh per EWS to builders constructing houses in the States, UTs, and Cities.
Subsidy For Beneficiary-Led Individual House Construction
Under this component, the individual eligible families belonging to the EWS category are provided central financial aid of Rs. 1.5 lakh in conclusion to Pradhan Mantri Awaas Yojana – Urban.
The Government has built roughly 8 percent or 3 lakh of the 40.6 lakh houses targeted so far in three years, in the urban areas, since the PMAY-Urban scheme was flagged off to provide housing for all by 2022. This latest data emerges from the websites of the urban affairs ministries. As per the statistics available, work is in progress on 18 lakh homes to cover 44 percent of the target. Keeping in view the fact that housing projects take 18-24 months to complete, the Pradhan Mantri Awaas Yojana – Urban scheme will record improved pace in the completion of under-construction houses in the financial year 2018-19.
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