Higher Budget Allocation For PMAY On Cards In FY19

Higher Budget Allocation For PMAY On Cards In FY19

Higher Budget Allocation For PMAY On Cards In FY19

Last year about this time, the Ministry of Housing and Urban Poverty Alleviation (HUPA) could claim that the number of homes sanctioned under the Pradhan Mantri Awas Yojana (PMAY) had touched 13.43 lakh. A year on, on February 8, the Centre has given a nod for 1.86 lakh homes that has taken the overall count to 39.25 lakh. The newly sanctioned homes will be constructed at an investment of Rs 11,168 crore with central assistance of Rs 2,797 crore.

Of the total number announced, 53,290 homes will be constructed in Haryana, making it the largest beneficiary. These homes will be constructed at an investment of Rs 4,322 crore and central assistance of Rs 799 crore. 

Here is the breakup:

Screen Shot 2018-02-09 at 4.15.57 PM

A total of 1,08,095 new homes are being constructed under the Beneficiary-Led Construction (BLC) component of PMAY (Urban) while the rest are being constructed under the Affordable Housing in Partnership (AHP) component. All the approvals were given in the 30th meeting of the Central Sanctioning and Monitoring Committee.

How it works?

Under the scheme, eligible beneficiaries would be given a Central assistance of Rs 1.50 lakh for the construction of new houses on their land or for improving the condition of their existing homes.

Under the PMAY, the Central government provides aid to urban-local bodies in four ways. It could be either rehabilitation of slum dwellers with private assistance or affordable housing with private partnership or BLC or credit-linked subsidies.

Apart from the credit-linked subsidies, it is the government that will have to take the initiative to bring the PMAY to fruition.

According to Dr Gagan Roy, consultant, planning and implementation, Government of Odisha, the political will of the state governments is key. The new approach for implementation is best in the recent scenario and is fully Direct-Benefit Transfer (DBT). The socio-economic status is the best approach with utilisation of modern technology adding value to it. Strong Information, Education and Communication campaigns (IEC) is required. Often, political will, financial capacity of state and Centre, corruption, adequate land for construction and even burgeoning population act as major roadblocks.

Higher funds is the key

While units are being sanctioned, an increase in the funds allotted is also necessary. "A significant increase in the planned spending under the PMAY, from Rs 29,043 crore in FY18 to Rs 64,500 crore in FY19, is likely to result in a notable pick-up in execution since funding availability was a constraint in the past," a PTI report quoted Shubham Jain, vice president and real estate head at ICRA as saying.

The Centre’s mission of coming up with 30 million units in rural areas and 20 million in urban areas by 2022 looks like it lacks lustre. Reportedly, Jain said, “In terms of physical progress, both the schemes have been slow in meeting the target.” According to numbers released by ICRA, under the urban scheme, which was launched in June 2015, as against around 3.6 million housing units approved since FY16, only around three lakh units have been completed till date. Under the rural scheme, too, the number of homes sanctioned as of January 15 this year was six million, but with around 1.6 million are completed so far. Higher funds may help shape the Housing-For-All dream.

With inputs from Housing News

Last Updated: Thu Mar 22 2018

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