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Pradhan Mantri Awas Yojana – Things to know

Pradhan Mantri Awas Yojana – Things to know

What is Pradhan Mantri Awas Yojana

 Pradhan Mantri Awas Yojana (PMAY) is a ‘Housing for all’ mission for the urban poor that has been implemented on 1 st June 2015 by Prime Minister Narendra Modi. The mission aims to provide housing for all before the end of the year 2022. This is when our nation completes 75 years of Independence. 

Under PMAY, affordable houses will be built in certain specific towns and cities with the help of eco-friendly construction methods. This is likely to be hugely beneficial for the urban poor.  

  • Slum redevelopment
  • Credit-linked subsidy
  • Affordable housing in partnership
  • Beneficiary-led construction or enhancements of individual houses

 Under the credit-linked subsidy scheme, the beneficiaries of PMAY are eligible for a subsidy in the interest payable if they avail of a loan to purchase a house or construct one. 

The assistance is provided through states and union territories (UTs) and other central nodal agencies (CNAs). 

 The PMAY (U) scheme caters to the housing requirements of the poor in the urban areas as well as those slum dwellers residing in confined areas of the slums that have poor sanitation and drinking water facilities.  

Objectives of the PMAY Scheme

 In tune with the alarming rise of the population in Indian cities, it is estimated that by the year 2050, close to 814 million people will be residing in the urban areas of the country. This is almost twice the number of people that already reside in the cities and towns of the country.

 The Pradhan Mantri Awas Yojana scheme aims to provide housing options that are affordable to the urban poor, and also ensure that these options make for a safe and sustainable environment for those living in them. 

What PAMY (U) Offers

 The scheme is open to households having an annual income of up to 3 lakhs (EWS), 3-6 lakh (LIG), 6-12 lakh (MIG I), and 12-18 lakh (MIG II). The interest rate subsidies for these different categories are 6.5% for EWS and LIG categories, 4% for MIG I and 3% for MIG II categories. The home loan tenure for all these categories is the same, i.e., 20 years. 

 The maximum loan amount to qualify for subsidy is 6 lakh for EWS and LIG, 9 lakh for MIG I and 12 lakh for MIG II. This subsidy is limited to a maximum interest amount of 2.67 lakh for EWS and LIG, 2.35 lakh for MIG I and 2.3 lakh for MIG II categories. The maximum carpet areas built for these categories are 30, 60, 160 and 200 sq. meters for the categories EWS, LIG, MIG I and MIG II, respectively. The discount rate for NPV calculation of the interest subsidy is the same in all the cases and is 9 percent.  

Other Features of PMAY (U)

Senior citizens and differently-abled citizens will be given preference to select residences on the ground floor. The scheme covers 4041 statutory towns across the country and the priority is given to 500 Class I cities within these towns. The construction will take place in three phases. The credit-linked subsidy scheme of the PMAY will get initiated in all of the proposed statutory towns right from the first stage of PMAY implementation. 

Who all can apply for PMAY (U)

Any beneficiary who is awarded a home under the PMAY (U) scheme will be a family that is made up of husband, wife, and unmarried sons or unmarried daughters. The beneficiary should not own any other pucca house in his/her name or the name of any other member of the family in any part of India.

Other Eligibility Criteria

To select eligible candidates for the Pradhan Mantri Awas Yojana scheme, the government will use the Socio and Economic and Caste census of the year 2011. The village Panchayats together with tehsils will be considered for this. This is being done to ensure complete transparency in the beneficiary selection process. 

Any household with an annual income between 6 and 18 lakh can apply. The applicant can add the income of the spouse while applying to become a beneficiary. The beneficiary must buy a new house under the Pradhan Mantri Awas Yojana scheme. PMAY benefits are not available for those who own a pucca house already.

 Women citizens of India are eligible to apply. No other demographic will be considered for Indian women. Members of Low Income Group (LIG), Economically Weaker Sections (EWS), Scheduled Casts and Tribes are also eligible to apply. Specially abled and senior citizens will be given certain preferences under the scheme.  

PMAY – Current Progress

 The central government has recently approved the construction of 1.4 lakh houses under the Pradhan Mantri Awas Yojana scheme. With this, the total number of houses built under PMAy has risen to over 85 lakh.

The states that were approved for the houses were Uttar Pradesh (54,277), West Bengal (26,585) Gujarat (26,183), Maharashtra (8,499), Assam (9,328), Rajasthan (4,947), Chhattisgarh (6,507) and Haryana (3,808).  

The total of the 492 projects that were announced would cost the 6642 crores. Out of this amount, the central government promised financial assistance to the tune of 2102 crore.  

Top officials have also said that the beneficiaries would be able to occupy the houses under the PMAY scheme by the year 2021 when the construction is complete. 

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