New Scheme to Alleviate Urban Housing Crisis

Context:

In his 77th Independence Day address, the Prime Minister introduced a new scheme to address the housing challenges confronting the urban poor. This initiative works in conjunction with the existing flagship program, Pradhan Mantri Awas Yojana Urban (PMAY-U), launched in 2015.

Relevance:

GS II: Government Policies and Interventions

Dimensions of the Article:

1. Pradhan Mantri Awas Yojana Urban
2. Components of PMAY-U: Enhancing Urban Housing

Pradhan Mantri Awas Yojana Urban

Implemented by the Ministry of Housing and Urban Affairs (MoHUA), the PMAY-U initiative aims to alleviate the pressing issue of inadequate urban housing among economically disadvantaged sections through the following key points:

Objective and Timeline:

• The mission’s primary objective is to provide durable and permanent houses to eligible urban households by 2022.
• To ensure the completion of all sanctioned houses, the scheme’s duration has been extended until December 2024. The funding and implementation approach remain unchanged.

Target Beneficiaries:

• The scheme targets urban housing shortages among various economic segments, including the EWS/LIG and MIG categories.
• Economically Weaker Section (EWS) with a maximum annual family income of Rs. 3,00,000.
• Low Income Group (LIG) with a maximum annual family income of Rs. 6,00,000.
• Middle Income Groups (MIG I & II) with a maximum annual family income of Rs. 18,00,000.
• Beneficiary families include husbands, wives, unmarried sons, and/or unmarried daughters.

Components of PMAY-U: Enhancing Urban Housing

The Pradhan Mantri Awas Yojana Urban (PMAY-U) comprises several key components aimed at improving urban housing conditions:

In-situ Slum Redevelopment (ISSR):

• Offers Rs. 1 lakh per dwelling as Central Assistance to eligible slum residents during redevelopment.
• Focuses on utilizing land as a resource in collaboration with private developers.
• States/Cities can allocate this assistance to other slum redevelopment projects if needed.

Credit Linked Subsidy Scheme (CLSS):

• Supports EWS/LIG and Middle Income Group (MIG) individuals seeking housing loans.
• Provides interest subsidies as follows:
  • 6.5% on loans up to Rs. 6 Lakh
  • 4% on loans up to Rs. 9 Lakh
  • 3% on loans up to Rs. 12 Lakh
• Designated Central Nodal Agencies (HUDCO, NHB, SBI) channel subsidies through lending institutions.

Affordable Housing in Partnership (AHP):

• Offers Rs. 1.5 Lakh Central Assistance for each EWS dwelling by the Government.
• Focuses on affordable housing projects targeting at least 35% of homes for EWS category.
• States/UTs set affordability limits for EWS homes.

Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E):

• Provides up to Rs. 1.5 lakh Central Assistance for constructing/enhancing individual houses.
• Urban Local Bodies verify beneficiary information, land ownership, and eligibility.

-Source: The Hindu