Pradhan Mantri Awas Yojana- Houses for all (An account of initiatives)

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TOPIC: 

General Studies 1

• Social Issues, Urbanization, their problems & remedies

General Studies 2

• Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
• Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.

In line with the government’s vision of “Housing for All” by 2022, the Ministry of Housing and Urban Affairs is implementing PMAY-U since June 2015 for providing assistance to States/Union Territories (UTs) in addressing the housing requirement of the people belonging to the Economically Weaker Sections (EWS), Lower Income Group (LIG) and Middle Income Group (MIG) categories in urban areas. The government aims to build 1 crore houses under the scheme.

According to the data presented by the Ministry to the Lok Sabha, as on January 31, 2019, a total 15,263 projects have been approved for construction of 72,65,763 houses under the PMAY-U, of which 37,54,871 houses have been grounded for construction, 14,42,796 houses have been completed. States/UTs have also been requested to adopt modern, innovative and green technologies and building material for faster and quality construction of houses.

The Scheme

The Pradhan Mantri Awas Yojana (Urban) Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022, when the Nation completes 75 years of its Independence. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

• Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
• Promotion of Affordable Housing for weaker section through credit linked subsidy
• Affordable Housing in Partnership with Public & Private sectors
• Subsidy for beneficiary-led individual house construction /enhancement.

What are the challenges?

• Low participation from private real estate development
• Increasing construction cost on account of lack of bulk sourcing of materials
• Unavailability of land in prime areas
• The faulty bidding mechanism
• The government will need another ₹1 lakh crore in three years to build one crore houses, as disbursements under PMAY-U show a huge lag. A ramp-up in fund-raising and utilisation is crucial.
• The success of the housing schemes depends largely on how active the states and urban local bodies are. The Union government provides the funds and they are spent by the states and urban local bodies. Some states are active and some may not be very enthusiastic about it because of political reasons
• Right now, the challenge before the government is to double the speed of construction in order to complete the remaining 6.6 million houses before March 2019. To achieve this target, the Centre has to nudge states such as Assam and Bihar, which have been lagging behind in implementing the scheme.

What are the solutions?

Roping in the private sector under the Public-Private Partnership (PPP) model: Among other initiatives, the government needs to

• Grant infrastructure status to the entire real estate industry making long-term financing easy for the industry
• Fix GST rate for all types of housing at 6%
• Revise carpet area to 60 sq. mt including in metro cities (to qualify for subsidy)
• Make land available at subsidized rates in metros and tier 1 cities so that the projects can be viable;
• Reduce premium on additional FSI (floor space index) to encourage affordable housing within metro cities
• Reduce time taken and cost of permissions and clearances
• Work on the mass housing model, bringing economies of scale into the picture

Reward developers for last mile connect

• Availability of land in cities at affordable pricing is one of the major challenges. The government could facilitate the development of affordable housing by making surplus land held by PSUs (Public Sector Undertakings) available for affordable housing projects. Also, local government’s property that is no longer useful can be monetised by selling to developers.
• The central government should guide the states on programmes to allocate and incentivise the usage of land for affordable housing, while also incentivising state governments to facilitate engagement and implementation.
• It is also recommended to incentivise developers for infrastructure and last mile connectivity development in semi-urban centres. It can be in the form of an increase in FSI or reduction in stamp duty or tax, and others. Infrastructure upgrading precedes the FSI increase to ensure that existing households are not adversely impacted due to the new development

Must Refer:

Housing and Urban Affairs

Social Challenges in Housing Schemes

Note:

Land: State subject

Carpet (floor) Area has been increased by 33% to qualify for Pradhan Mantri Awas Yojana (Urban) Subsidies

Global Housing Technology Challenge (GHTC): To fast-track the construction of affordable housing and meet the target of constructing 1.2 crore houses by 2022.

MahaHousing Initiative: Maharashtra Housing Development Corporation, a dedicated housing corporation to implement the PMAY in the state.

Connecting the Dots:

1. A house is a security that allows every individual to flourish under a sense of dignity. Elucidate. Also examine the significance of the Pradhan Mantri Awas Yojana in ensuring the social dignity of an individual.
2. Providing affordable housing to all in India seems to be an ambitious target to achieved by 2022. Discuss the challenges and the way out.