Housing for All by 2022 – It’s Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana

As per the current number estimate, the population of the country living in urban areas, which has already seen a steep increase over the past decade, is set to see an exceptional growth in the coming years. By the year 2050, the country’s urban population is estimated to reach more than 814 million. Nearly 400 million people from current levels. With such large population, providing affordable housing, sanitation and development, and a safe environment to the city dwellers will be the biggest challenges faced by India.

Currently, real estate developers have a lot of control on the areas which shall be developed. Also, the real estate prices have also touched skies over past many years making it almost impossible for common man to own a house. To address this issue, that our Prime Minister Narendra Modi announced the Housing for all scheme by 2022, which is known as the Pradhan Mantri Awas Yojana (PMAY). In the year 2015, this scheme was launched on 25 June in Vigyan Bhawan, New Delhi. Other than this scheme, two more were launched:

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1) For the development of Smart Cities pan India

2) The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) that allows for urban renewal and up gradation of infrastructure in the major urban cities

All these three schemes were launched in the presence of mayors, municipal commissioners, and state-government officials across the country. At the launch he metioned, “The country’s 40% of the population lives in cities and it is government’s responsibility to provide the amenities so that their standard of living can be raised. The housing for all scheme (PMAY) will ensure every urban poor is able to own a house. AMRUT will be responsible for basic infrastructure and sanitation in cities.”

Scheme Details

As per the terms of the Pradhan Mantri Awas Yojana, by 2022 the government of India will undertake the construction of about two crore houses. A central grant of about INR 1 lakh which may go up to INR 2.3 lakhs to each of the house provided under the scheme. 6.5 percent interest rate subsidy scheme (previous schemes had an interest rate subsidy of about 1 percent) will also come as a part of thi scheme. This means that applicant who belong to lower income groups who plan to avail the housing scheme can also apply for a housing loans with subsidized interest rate of 6.5%. The total tenure of the housing loan may go up to 15 years and benefit earned by such loan subsidy will add to INR 1 to 2.3 lakh each. Currently housing loan interest rate if around 10.5%. Thus, the subsidy should act as a major relief to applicants. Also, it was made clear that the ‘The Housing for All (PMAY)’ scheme will replace all the previously existing government schemes related to housing such as the Rajiv Awas Yojana.

According to initial estimates, by 2022 the Housing for All scheme will cost the central government about INR 3 lakh crore for the next seven years. The operational guidelines for the schemes launched have been locked after long sessions of negotiations with states and Union Territories, say news reports.

In addition to PMAY, the government has come up with a other incentives and subsidies for urban housing development. One of these is the grant of INR 1 lakh per beneficiary to state governments for developing the housing projects in slum areas.

Affordable rental housing, an INR 6,000 crore initiative, which was at first part of the ‘Housing For All’ scheme was absent from the NDA government flagship scheme. The measure, meant to prevent the proliferation of slums in urban regions may be released as a separate scheme at a later date.

Coverage and Duration of Pradhan Mantri Awas Yojana (PMAY) :

Phase I (April 2015 – March 2017): This phase will cover 100 cities selected from States/UTs.

Phase II (April 2017 – March 2019): Second phase of PMAY will cover additional 200 cities.

Phase III (April 2019 – March 2022): Third and last phase will cover all other remaining cities.

List of Cities Selected for Pradhan Mantri Awas Yojana

Benefits to Women, SC/ST

While the Pradhan Mantri Awas Yojana aims to provide affordable housing for all by 2022, it is also set to make sure that the benefits of the scheme are enjoyed by women, the Scheduled Castes and Scheduled Tribes and economically backward groups of the society. In an unparalleled move, the government aims to protect the interests of neglected groups in the country. Transgender and widows, members of the lower income groups and urban poor, and the Scheduled Castes and Scheduled Tribes shall be granted preference over other when they apply for the affordable housing scheme. Apart from these group of people, members of society who often find themselves homeless, seniors and differently-abled people will also gain preference in allotment of houses. They can also choose a ground-floor house as per their need and preference. Additionally, it is also compulsory that while registering to avail the benefits of the scheme, the beneficiaries must mention their mother or wife’s name. According to news reports, before the launch of the scheme these details were revealed by a Housing and Urban Poverty Alleviation Ministry official. The scheme is a unique one in India in terms of the protection and benefits that it provides to previously neglected aforementioned groups.

Smart Cities and AMRUT

As per the government’s scheme for Smart Cities, 100 smart cities across the country will be developed in the duration of next five years. This project that would involve major national and international stakeholders is estimated to cost of around INR 48,000 crores. Simultaneously over 500 cities in the country have been selected for urban renewal and upgradation of infrastructure, especially the drainage and sanitation facilities. The selection of Smart Cities will be done by public voting, said the PM. The 500 cities for AMRUT are currently under the process of identification. The government of India has planned to spend about INR 400,000 crore on these three schemes together in the next six years. To finance and successfully run these schemes, the government will be looking at the public private partnership model.

How to Apply for PMAY?

The scheme has just being announced by the Prime Minister. Several other housing schemes will be launched under the main scheme by different state governments. Once the state governments launches the schemes, the application forms will be made available to the desired applicants online and offline.

For further information on Pradhan Mantri Awas Yojana (PMAY), please log onto: http://pmaymis.gov.in/

Pradhan Mantri Awas Yojana Application Form :

You can download PMAY application form from here on this link –

http://mhupa.gov.in/writereaddata/survey_form_mar16_eng%242016Jun28171232.pdf