Context: 

Recently, the Prime Minister’s announcement introduces a scheme to aid urban poor in constructing houses within cities.

Government’s Altered Approach:

• Recent standpoint contrasts with previous position of no new housing scheme.
• Pradhan Mantri Awas Yojana-Urban (PMAY-U) extension till December 2024 prioritized swift completion of approved housing projects.
• An assessment of PMAY-U’s progress could be the catalyst for this shift in stance.

Concerns with the Previous Urban Housing Scheme:

• Incomplete Housing Projects: Despite the extension of Pradhan Mantri Awas Yojana-Urban (PMAY-U), a substantial number of sanctioned houses remained incomplete.
  • Only 76.25 lakh houses out of 1.19 crore sanctioned were completed over an 8-year span.
• Financial Burden on Beneficiaries: The funding structure required beneficiaries to contribute a significant portion of the investment, nearly 60%.
  • Central assistance accounted for 24.4% while States and urban local bodies contributed 16%.
  • Low-income beneficiaries found it challenging to afford their share, impacting the scheme’s effectiveness.
• Lack of Proof for Financial Institutions: Efforts by some State governments to assist beneficiaries in obtaining bank loans were hindered.
  • Financial institutions hesitated due to inadequate proof of sustained income, impeding access to loans.

The parliamentary committee’s recommendations:

• Implementation Flexibility: Propose the abandonment of the uniform and rigid model of assistance employed in the PMAY-U initiative.
  • Advocate for the adoption of an adaptable framework for providing assistance, contingent upon factors such as geographical topography and localized conditions.
• Quality Assurance and Unoccupancy Investigation: Advocate for a comprehensive inquiry into the underlying causes behind the subpar quality of constructed dwellings.
  • Urge an extensive examination into the reasons contributing to the prevalence of unoccupied houses.
• Addressing Diverse Factors: Acknowledges the significance of factors such as high land costs, floor space index limitations, and multi-agency certifications.
  • Recognizes their impact on the viability of urban housing initiatives.
• Centralized Collaborative Discussions: Calls for organized discussions led by the central government involving pertinent stakeholders.
  • Involvement of State governments, local bodies, urban planning entities, professionals, financial institutions, and activists is essential.
• Drafting a Comprehensive Scheme: Emphasizes the importance of formulating a robust and fool-proof housing scheme.
  • Aims to transcend the realm of rhetoric and transform “housing for all” into a tangible reality for the future.

News Source: The Hindu