Pradhan Mantri Awas Yojana (Urban), introduced in 2015, is a dream of Honorable Prime Minister Narendra Modi of India to provide, exactly as the name of the scheme implies, a house for all by 2022. For starters, the Union has shortlisted 305 places (urban and semi-urban) in 9 states. The plan is to construct homes for the economically backward in these regions; they aim to develop 20 million reasonably priced houses for the urban poor, giving them a funding of INR 1 Lakh to 2.30 Lakh per unit. Quite ambitious, this mammoth housing scheme of the current government.
Housing for All by 2022:
Under the Pradhan Mantri Awas Yojana (PMAY), the main proposal was to constrict 20 million homes for the those people belonging to the Low Income Families and Economically Weaker Sections in the identified urban and semi urban areas by 2022. The central government has already pushed the subsidy of INR 2 lakh crores for this. Housing for all 2022 has mainly four categories, which are:
- Building and/ or enhancing the houses led by legatees
- Reasonable housing via Credit Linked Grant
- In-situ Slum Redevelopment with private sector participation using land as resource
- Affordable housing in association with private and government funding
As per these components, government aid will be an amount between INR 1 lakh and INR 2.30 lakhs based on the beneficiary’s eligibility.
Shortlisted Cities & Towns:
By careful assessment, contemplation and debate, the government has chosen a list of cities and towns from the following states.
- Kerala: 15 urban and semi-urban regions
- Telangana: 34 urban and semi-urban regions
- Gujarat: 30 urban and semi-urban regions
- Maharashtra: urban and semi-urban regions
- Madhya Pradesh: 74 urban and semi-urban regions
- Orissa: 42 urban and semi-urban regions
- Chhattisgarh: 75 urban and semi-urban regions
- Jharkhand: 15 urban and semi-urban regions
- Rajasthan: 40 cities/towns
- Jammu and Kashmir: 19 urban and semi-urban regions
Salient Features of Pradhan Mantri Awas Yojana:
Not only is PMAY the biggest housing scheme to being executed in the world, but it is also endowed with attractive features and benefits, some of which are listed below.
- The center will give a whopping subsidy of 6.5 percent in the interest rate at the time on home loans applied by the recipients. This will be for a tenure of 15 years from the date the loan was disbursed.
- All the buildings constructed under Pradhan Mantri Awas Yojana and the techniques utilized will be eco-friendly.
- Disabled and senior citizens will be given priority and government, to the best of its ability, will see to it that they are allocated ground floors.
- All the houses provided under the PMAY Scheme will be in the name of women or co-owned by the woman in the family.
The Center has sanctioned INR 439.22 billion for building 683,724 homes for the urban poor. Yes, this also entails the central aid commitment of INR 100.50 billion allotted three months ago (April 2016).
Credit Linked Subsidy Scheme (CLSS)
The Home for All Mission, so as to raise official influx of funds to the housing requirements of poor people from urban ad semi-urban regions will put credit linked subsidy too as a demand. This Credit Linked Subsidy Scheme or CLSS will be offered on housing loans availed by deserving applicants (EWS/LIG) for purchase or construct a house in a residential plot. Recipients of Economically Backward Group and Low Income Sector looking for housing loans from any approved financial institute can get house loan at the rate of 6.5 percent for a loan term of up to 15 years. The overall value of the current interest rebate will be around nine percent. There is a slight hitch though. The CLSS shall be availed only for loan sum up to INR 6 lacs and any amount beyond that will have to be availed at the normal interest rate.
Subsidized rate of interest will be given right away along with the home loan account of recipients via financial institute ending up in easily manageable and less loan EMI. Credit linked subsidy can be availed for home loans taken to construct new homes as well as renovate or extend the place (adding room, kitchen etc.) as incremental home loan. The overall area of the house being built as per this constituent of the House for All Mission must be at least up to 30 to 60 square meters for EWS and LIG in that order to get this sponsorship. The recipient, as per his/ her preference, shall construct a home of bigger area but interest grant would be restricted to first INR 6 lacs. National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO) have been recognized as Central Nodal Agencies (CNAs) to direct this funding to banks and financiers for tracking the development of this constituent. Government shall inform other such institutes (like CAN) if they deemed fit. But the recipient can avail the benefit of only one perk as per the rules of this scheme.
Assistances from Private Sector Enterprises:
ICICI Bank, country’s largest private lender, has stepped forward to be a part of this benevolent mission and offered subsidized home loans to those applicants eligible for the scheme. AU Housing Finance Limited is another strong contributor.
More about the Technology Sub-mission Appointed for PMAY Scheme:
The government is leaving no stone unturned to ensure topnotch construction quality as they have selected a highly competitive professionals under the Technology Sub-mission. Their predominant function is to implement up-to-date, ground-breaking and ecofriendly technologies and construction material for quicker completion of the buildings. The Technology Sub-Mission will enable preparing and picking the best layout and plans keeping in mind the geographic and climatic conditions of the city. They will also aid the state government and Municipal Corporations to deploy effective disaster management systems.
The Technology Sub-Mission will coordinate with various regulatory and administrative bodies for mainstreaming and up scaling deployment of modern construction technologies and material in place of conventional construction. The Technology Sub-Mission will also coordinate with other agencies working in green and energy efficient technologies, climate change etc.
Other functions of Technology Sub-Mission:
- Designing & Planning of the Buildings
- Sorting the most innovative technologies
- Picking the most suitable materials
- Planning environment friendly buildings using local resources as much as possible
- Overseeing if the designs and plans can resist disaster