Housing for All

GS Paper II Social Justice

Context:

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

About Pradhan Mantri Awas Yojana (PMAY):

The Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme initiated by the Government of India for the Urban poor.
Launched in June 2015, being implemented by the Ministry of Housing and Urban Affairs (MoHUA).
The scheme aims to provide affordable and quality housing for all by the year 2022.
The primary focus is on addressing the housing needs of economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG).
The annual income cap is up to Rs 3 lakh for EWS, Rs 3-6 lakh for LIG and Rs 6 + -18 lakhs for MIG.

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.