What is PMAY scheme about?
PMAY which stands for PRADHAN MANTRI AWAS YOJNA ( Housing for all) is a housing project of government which was launched in the month of June 2015 . The aim of project is to provide Pucca house for all by 2022.
According to the current estimate , the country urban population is in sharp increase, which is about to 814 million by 2050 so the need for affordable housing is also increasing every year.
To solve this problem government of India launched Pradhan Mantri Awas Yojna is a flagship scheme of government in the month of june 20015 which aim is to provide 20 million affordable houses for all by 2022 .
The scheme has two part, the one part is called Pradhan Mantri Awas Yojna (Urban PMAY-U) which aim is to provide affordable housing for urban people and second part is Pradhan Mantri Awas Yojna ( Gramin PMAY-G) and PMAY-R for rural poor people for affordable housing in Rural area.
The beneficiary are women, economically backward groups of Indian society and the Scheduled Castes and Scheduled Tribes. .
In an unprecedented move, the government has decided to protect the interests of neglected groups in the country. Providing affordable housing, sanitation,development and safe environment is a big challenge for the government.
Transgender and widows, members of the lower income groups and urban poor, seniors and differently-abled people and the Scheduled Castes and Scheduled Tribes shall be granted preference when they try to avail the affordable housing scheme benefits.
The above mentioned category people also get preference if they try to avail the affordable housing scheme.
The scheme will cover entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities in three phases.
Credit linked subsidy component of the scheme would be implemented across the country in all statutory towns right from the beginning.
The PMAY has 4 component which are –
- 1-In-situ Slum Redevelopment with private sector participation using land as resource,
- 2-Affordable Housing through Credit Linked Subsidy,
- 3-Affordable Housing in Partnership with private and public sector and
- 4-Beneficiary led house construction/enhancement
Key Definition Of The Scheme:-
(All the guidelines are based on the Government documents)
Affordable Housing Project:- Housing projects where 35% of the houses are constructed for EWS ( Economically Weaker Section ) category.
Beneficiary– A beneficiary family will include husband, wife and unmarried children. The beneficiary family should not own a pucca house (an all weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India.
Carpet Area -Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls Central Nodal Agencies-Nodal Agencies identified by Ministry for the purposes implementation of Credit linked subsidy component of the mission
Economically Weaker Section (EWS):-EWS households are defined as households having an annual income up to Rs.3,00,000 (Rupees Three Lakhs). States/UTs shall have the flexibility to redefine the annual income criteria as per local conditions in consultation with the Centre.
EWS House– An all weather single unit or a unit in a multi-storeyed super structure having carpet area of upto 30 sq. m. with adequate basic civic services and infrastructure services like toilet, water, electricity etc. States can determine the area of EWS as per their local needs with information to Ministry
Floor Area Ratio (FAR)/FSI- The quotient obtained by dividing the total covered area (plinth area) on all the floors by the area of the plot: Total covered area on all the floors x 100 FAR = Plot area , If States/Cities have some variations in this definition, State/City definitions will be accepted under the mission
Implementing Agencies- Implementing agencies are the agencies such as Urban Local Bodies, Development Authorities, Housing Boards etc. which are selected by State Government/SLSMC for implementing Housing for All Mission.
Low Income Group (LIG)– LIG households are defined as households having an annual income between Rs.3,00,001 (Rupees Three Lakhs One) up to Rs.6,00,000 (Rupees Six Lakhs). States/UTs shall have the flexibility to redefine the annual income criteria as per local conditions in consultation with the Centre.
Primary Lending Institutions (PLI)- Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks or any other institutions as may be identified by the Ministry
Slum- A compact area of at least 300 population or about 60-70 households of poorly built congested tenements, in unhygienic environment usually with inadequate infrastructure and lacking in proper sanitary and drinking water facilities.
State Land Nodal Agencies (SLNAs)– Nodal Agency designated by the State Governments for implementing the Mission
Transfer of Development Rights (TDR)– TDR means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can use extra built up area himself in some other land.
Objective Of PMAY Scheme-
- The Scheme is for Urban and Rural areas which cover states and union territory of our country.
- 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 and Subsidy for beneficiary-led individual house construction or enhancement
Features of the PMAY scheme-
- Interest subsidy of 6.5 percent on housing loan will be provided for 15 years to the beneficiaries under the credit link subsidy scheme. ( Now changed to 20 Years )
- Older and Differently abled persons will be given preference in the allotment of ground floors under the Pradhan Mantri Awas Yojana scheme.
- Eco-friendly and sustainable technologies will be used during the construction process.
Structure Of the Ministry-
The Ministry of Housing and Urban Poverty Alleviation is the highest authority of Government of India at the national level to formulate policies, sponsor and support programme, coordinate the activities of various Central Ministries, State Government.
It also covers other nodal authorities and monitor the programmes concerning all the issues of urban employment, poverty and housing in the country.
Eligibility For Pradhan Mantri Awas Yojna –
The eligibility criteria to avail benefits under Pradhan Mantri Awas Yojna for lower income group, economically weaker section and middle income group is mentioned below.
Lower Income Group & Economically Weaker Section.
|2||Household Income (P.A)||Upto 6 lac only|
|3||Tenor for calculating subsidy amount||20 years( latest)|
|4||Documentation requirement||Aadhar of an applicant, co-applicant, adult household members is must.|
- Beneficiary maximum age should be under 70 years.
- An applicant/family/household should not own a pucca house in any parts of the country either in his name or any of his family member’s name
- An applicant must not have availed any central/state assistance under any housing scheme from Government of India ever
- One adult female membership is mandatory in the property ownership.
- EWS (Economic Weaker Section) annual income Less than Rupees 3 Lac
- Property should be co-owned by a female member of the family
Location of the property should fall under all statutory towns as per 2011 census and their adjacent planning area (updated by the government from time to time)
- LIG (Lower Income Group) & Middle income group Annual Income 4,lac to 6 Lac .
Middle Income Group-
|S.L No||Particular||CLAA MIG-01||CLSS MIG-2|
|1||Household Income (P.A)||6-12 Lakhs||12-18 Lakhs|
|2||Requirement of NOC from State govt||Not required||Not required|
|3||Dwelling Unit Carpet Area||Upto 160 Sq mt||Upto 200 Sq mt|
|4||Tenor for calculating subsidy amount||20 Years||20 Years|
|5||Documentation requirement||Aadhar of an applicant, co-applicant, adult household members is must||Aadhar of an applicant, co-applicant, adult household members is must|
|6||House Upgradation||Not Covered||Not Covered|
- Applicant must not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India
- Applicant must not have availed any central/state assistance under any housing scheme from Government of India ever
- Adult female membership ownership in property is desirable
Location of the property should fall under all statutory towns as per 2011 census and or adjacent planning area (updated by government time to time)
How To Implement The PMAY Scheme:-
The PMAY has four step implementation in which the complete project have to completed in time. The Four steps of implementation are-
1- “In situ” Slum Redevelopment –
- In situ slum redevelopment process will use land resource for eligible slum dwellers and provide them Pukka house.
- Government will also look for the private partners though open bidding process, if required, provide additional Floor Area Ratio (FAR)/Floor Space Index (FSI)/Transferable Development Rights (TDR) for making slum redevelopment projects financially viable
- The rehabilitation grant is 1 lakh per house on an average for eligible slum dwellers in these projects. But States and union territories has the flexibility to deploy the central grant for the eligible slum dweller with private participation except private land.
- “In-situ” redevelopment of slums on private owned lands for providing houses to eligible slum dwellers can be incentivised by State Governments/UTs or ULBs by giving additional FSI/FAR or TDR to land owner as per its policy. Central assistance cannot be used in such cases
- Beneficiary contribution in slum redevelopment project , Eligibility of the slum dwellers like cut off date etc will be decided by states /UTs.
- A viable slum rehabilitation project would have two components:- 1- “slum rehabilitation component ” it will provide house with basic civic facilities and other “free sale component ” This will be available for developers to sale in the market to cross subsidizes the projects.
2- Affordable Housing through Credit Linked Subsidy –
- In order to provide financial subsidy to the EWS and LIG , financial institution will provide subsidy to these house owner when they take home loans above mentioned criteria.
- Housing loan will be provided to the interested owners for building or purchasing of new house by the banks and financial institutions at the interest rate of 6.5% for the tenure of 15 years or needed by house owner (whichever is lower).
- The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at non-subsidized rate.
- Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing.
- Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) are the nodal agencies to channelize the subsidy to the eligible owners.
3- Affordable Housing in Partnership –
- To provide affordable house to EWS section,state government UTs can do partnership with private agencies and Rs 1.5 lakh rupee per hpuse grant will be available by the central government .
- The States/UTs would decide the upper limit of sale price of these houses to make them affordable and accessible to the intended people.
4- Subsidy for beneficiary-led individual house construction-
- In this part, a central assistance will be given to the eligible ESW families who want build their individual house or enhance the existing house. The central assistance of Rs 1.5 lakh per house will be given to these eligible ESW category people.
- These ESW beneficiaries should not include in the previous component of this scheme.
- To avail this benefits , beneficiaries have to submit required documents to the ULB ( Urban Local Bodies) , and authorities will check the eligibility of the family under this scheme before approving.
Challenges Faced In Implementation Of The PMAY (Urban) Scheme-
PMAY is one of the biggest housing plan in the country which aim to provide Pakka house for all by 2022. Building housing in such a large number specially in urban area is big task for the government where clear land title and land acquisition is big challenges