The Pradhan Mantri Awas Yojana (PMAY) has replaced the Rajiv Gandhi Awas Yojana after the NDA came to power. Under PMAY(Urban), government has targeted assisting construction of 2 crore houses for urban poor in 4041 urban local bodies in the country. This is part of the ‘Housing for All by 2022’ mission.

The PMAY Scheme

The PMAY seeks to address the housing requirement of urban through the following 4 different verticals

Slum Redevelopment using land as Resource: Housing would be provided to eligible slum dwellers using land as a resource with private participation. This is aimed at leveraging the locked potential of land under slums to provide houses to the eligible slum dwellers bringing them into the formal urban settlement.

Credit Linked Subsidy Scheme:  Credit linked subsidy will be provided on home loans taken by eligible urban poor for acquisition and construction of house. Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for tenure of 15 years.

Affordable Housing in Partnership with Public & Private sectors: The Mission will provide financial assistance to EWS houses being built with different partnerships by States/UTs/Cities. To increase availability of houses for EWS category at an affordable rate, States/UTs, either through its agencies or in partnership with private sector can plan affordable housing projects. Central Assistance at the rate of Rs. 1.5 Lakh per EWS house would be available for all EWS houses in such projects.

Subsidy for beneficiary-led individual house construction: Assistance would be provided to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own, to cover the beneficiaries who are not able to take advantage of other components of the scheme. Such families can avail the central assistance of Rs. 1.5 lakh for construction of new houses.

Andhra Pradesh, Telangana & West Bengal get 69% of the Sanctioned Houses so far

Till date, a total of 5.07 lakh houses have been sanctioned under the various components of the scheme. A total of 13 states got houses sanctioned under the PMAY so far. Out of these, the three states of Andhra Pradesh, Telangana & West Bengal got 69% of all the sanctioned houses.

Andhra Pradesh got the lion’s share of 38% (193,147) of all the sanctioned houses, followed by Telangana with 80481 houses and West Bengal with 74880 houses. Tamil Nadu with 34013 houses and Gujarat with 32311 houses are other states in the top five.

Madhya Pradesh, Jharkhand, Bihar, Chhattisgarh, Rajasthan, Mizoram, Odisha & Uttarakhand are the remaining eight states to have been sanctioned houses.  The least number of houses were sanctioned in Uttarakhand (484).

For the 5.07 lakh houses sanctioned so far, the central assistance will be at the rate of Rs 1.5 lakh per house, making it a total of 7519 crore rupees.

Houses for the urban poor are yet to be sanctioned in 23 other States/UTs.

Most Central Assistance released to Andhra Pradesh

Out of the sanctioned assistance, the most amount of central assistance is released to Andhra Pradesh (335 crores) followed by Madhya Pradesh (115 crore). Till date, a total of 899.46 crore rupees has been released out of the sanctioned central assistance of 7519 crore rupees.