About Prime Minister Housing Scheme (PMAY)
The scheme of Pradhan Mantri Awas Yojana (PMAY) was launched by the Government of India with the objective of promoting cheaper homes than the expensive real state sector. The scheme aims to achieve its objective of “Housing for All” by constructing 20 million homes across the country by 31 March 2022 to commemorate the 150th birth anniversary of Mahatma Gandhi.
Based on the requirements of the regions, the scheme is divided into two parts – urban and rural.
1. Prime Minister Housing Scheme Urban (PMAY-U)
Currently, there are about 4,331 towns and cities under this scheme of Pradhan Mantri Awas Yojana Urban (PMAY-U). This includes Urban Development Authority, Special Area Development Authority, Industrial Development Authority, Development Zone, Notified Planning, and Urban Authority and all other authorities responsible for regulations.
This scheme will work in the following three phases:
Phase 1. Covering 100 cities in select states and union territories (UT) between April 2015 and March 2017.
Phase 2. Covering 200 additional cities between April 2017 and March 2019.
Phase 3. Covering the remaining cities between April 2019 and March 2022.
According to data from the Ministry of Housing and Urban Affairs (Ministry of Housing and Urban Affairs), as of 1 July 2019, the progress of PMAY-U in all states and union territories is as follows:
- Approved House – 83.63 Lakh
- Completed Houses – 26.08 Lakh
- Acquired House – 23.97 Lakh
As per the same data, the total amount to be invested is Rs. 4,95,838 crores, out of which Rs. An amount of 51,414.5 crores has already been released. Prime Minister Housing Scheme Rural (PMAY-G)
2.Pradhan Mantri Awas Yojana Gramin (PMAY-G)
Pradhan Mantri Awas Yojana Gramin (PMAY-G) was earlier called Indira Awaas Yojana. However its name was changed in March 2016. Its goal is to promote affordable and accessible housing for the whole of rural India except Delhi and Chandigarh.
Its objective is to provide financial assistance to the homeless and to those living in old houses to build pucca houses. The beneficiary living in the plains is Rs. 1.2 lakh and up to Rs. 100 / – for housing residing in North-Eastern, hilly areas, Integrated Action Plan (IAP), and inaccessible areas. Up to 1.3 lakhs can be availed. At present, according to the data available from the Ministry of Rural Development, 1,03,01,107 houses have been approved in all states and union territories.
In an effort to promote procurement in the real state sector, the government introduced PMAY, this cost of housing development will be shared between Central and State Government in the following ways:
- 64:40 for plain areas.
- 90:10 for the north-eastern and mountainous regions.
The beneficiaries of this PMAY scheme will be identified according to the data available from the Socio-Economic and Caste Census (SECC) and will include –
- Scheduled Castes and Scheduled Tribes.
- Minorities coming to non-SC / ST and BPL.
- Independent bonded labor.
- Families and widows of paramilitary forces and those killed in the action, ex-servicemen, and persons under the retirement scheme are included.
Components of PM Awas Yojana
There are four major features of this scheme:
I. Credit Linked Subsidy Scheme (CLSS)
For those who are eligible for this scheme, CLSS provides subsidy at home loan interest rates. The PMAY subsidy rate, subsidy amount, maximum loan amount, and other details are mentioned below:
|Ews||Lig||MIG I||MIG II|
|Maximum Home Loan Amount||Rs. 3 Up to a Lac||Rs. 3-6 Lac||Rs. 6-12 Lac||Rs. 12-18 Lac|
|Maximum interest subsidy amount||Rs. 2,67,280||Rs. 2,67,280||Rs. 2,35,068||Rs. 2,30,156|
|Maximum carpet area||30 sq. m.||60 sq. m.||160 sq. m.||200 sq. m.|
The maximum period of home loan under CLSS is 20 years. The NPV or net present value is assessed at a discounted rate of 9% of the interest subsidy.
II. Redevelopment of the slum in the same location using the land as a resource
The objective of this scheme is to rehabilitate land with settlements as a resource, in collaboration with private organizations to provide houses to families living in such places.
The central government determines the prices of the houses, and the beneficiary’s contribution (if any) is decided by the respective state or union territory (UT).
III. Affordable Housing in Partnership (AHP)
Affordable Housing in Partnership (AHP) on behalf of the Central Government to purchase houses for EWS families for Rs. Provides financial assistance of 1.5 lakhs. States and Union Territories (UTs) can partner with the private sector or their agencies for such housing projects.
IIV. Construction or improvement of own house done by the beneficiaries
This component of the PM Awas Yojana targets those EWS families who cannot avail the last three components. Such beneficiaries receive Rs. Financial assistance up to Rs 1.5 lakh will be received which they can use to build the house or to improve the existing house.