“Urbanization is not a crisis but an opportunity and not just villagers we want everyone to get opportunities wherever they are staying”, lines aforesaid by Narendra Modi. It is not about simply increasing the number of urban residents or expanding the areas of cities. More importantly, its about a complete change from rural to urban style in terms of industry structure, employment, living environment and social security. In India fast urbanization and numerous folk migrating towards city has caused drastic housing cottages in urban areas mainly for poor section of society. To tackle such scenario Government and RBI have initiated number of measures to boost affordable housing. According to technical group (TG12) report on (Estimation of Urban Housing shortage 2012) economically weaker sections and low income group solely estimated for 96% of total housing shortage in India. Many initiatives have been undertaken by Government of India endorsed by RBI to provide low cost housing like (National Housing Policy 1994, Rajiv Awas Yojana 2013) but the Pradhan Mantri Awas Yojana started in 2015 grants a fresh impetus. The PMAY Urban (PMAY-U) includes all the previous urban housing schemes with the objective “housing for all” to be achieved by 2022. The total housing shortage predicted to be addressed through the PMAYU is 20 million. The mission is divided into four parts:
1 :- In-Situ Slum Redevelopment (ISSR) –Aims at making the best use of land resource. The main objective of scheme is to provide houses to eligible slum inhabitants by rehabilitation. The subsidy of Rs. 1 Lakh per house is given by Central Government to planning and executing authorities of states.
2 :- Credit Linked Subsidy Scheme (CLSS) –Under this program, economically weaker section will be provided grants on home loans taken up by EWS, LIG and MIG households. The interest subsidy will be 3% for loan amount upto 12 lakhs. The subsidy will be made available on loans which will be used for new constructions or renovations of existing houses.
3 :- Affordable Housing in Partnership (AHP) – This strategy targets to support financial aid to private developers for their active participation in affordable housing projects. The Central Government assistance is provided to those private projects where 35% of construction of houses is for economically weaker sections and the subsidy is given at the rate of Rs. 1.5 lakh per EWS house.
4 :- Beneficiary Led Construction or Enhancement (BLC) – This component provides central assistance of Rs. 1.5 lakh per family for new construction or redesigning of existing houses of EWS/LIG by their own.
Due to Central Government initiative there was three fold increase in availability of housing which can be witnessed since April 2017 under PMAY-U.
Features of Scheme-
1 . The program will be executed under three-tier structure.
2 . PMAY scheme enables all beneficiaries to avail the subsidy interest rate at 6.5% on housing loan for term of 15 years.
3 . Physically challenged and elderly citizens will be given leverage in allotment of ground floors.
4 . For building affordable houses sustainable and environment friendly high-technology will be used.
5 . The credit linked subsidy component of PMAY will be carried out in all statutory towns from the very first phase itself
6 . Under PMAY scheme entire urban areas will be covered which comprises of 4041 statutory towns with the preference given to 500 Class One cities as smart cities mission. This whole process will be carried out in three stages- First stage to cover 100 cities, second stage to cover 200 cities and the last stage to cover remaining cities.
7 . Main beneficiaries under PMAY- Pradhan Mantri Awas Yojana aims to provide sustainable and affordable housing to most denied demographics which involve women specially widows, economically weaker sections of society, SC/ST, Transgenders and low income group members. To avail the benefits of this scheme registration is compulsory where major beneficiary names has to be mother or wife.
Affordable homes for all with water connection and toilet facilities, 24*7 power supply to achieve these goals Government is offering significantly lower interest rates under credit linked subsidy scheme as compared to market rates to those seeking to buy an affordable houses. Though Government has made initial success in this process. Further home finance companies are delineating support loans under Pradhan Mantri Awas Yojana in addition real estate builders welcomes this great step of Central Government with smile and are launching projects across cities under affordable housing schemes. To sum up Pradhan Mantri Awas Yojana contributes a significant role for millions dream to owe a house thus transforming urban landscape.