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New Scheme to Alleviate Urban Housing Crisis


In his 77th Independence Day address, the Prime Minister introduced a new scheme to address the housing challenges confronting the urban poor. This initiative works in conjunction with the existing flagship program, Pradhan Mantri Awas Yojana Urban (PMAY-U), launched in 2015.


GS II: Government Policies and Interventions

Dimensions of the Article:

  1. Pradhan Mantri Awas Yojana Urban
  2. Components of PMAY-U: Enhancing Urban Housing

Pradhan Mantri Awas Yojana Urban

Implemented by the Ministry of Housing and Urban Affairs (MoHUA), the PMAY-U initiative aims to alleviate the pressing issue of inadequate urban housing among economically disadvantaged sections through the following key points:

Objective and Timeline:
  • The mission’s primary objective is to provide durable and permanent houses to eligible urban households by 2022.
  • To ensure the completion of all sanctioned houses, the scheme’s duration has been extended until December 2024. The funding and implementation approach remain unchanged.
Target Beneficiaries:
  • The scheme targets urban housing shortages among various economic segments, including the EWS/LIG and MIG categories.
  • Economically Weaker Section (EWS) with a maximum annual family income of Rs. 3,00,000.
  • Low Income Group (LIG) with a maximum annual family income of Rs. 6,00,000.
  • Middle Income Groups (MIG I & II) with a maximum annual family income of Rs. 18,00,000.
  • Beneficiary families include husbands, wives, unmarried sons, and/or unmarried daughters.

Components of PMAY-U: Enhancing Urban Housing

The Pradhan Mantri Awas Yojana Urban (PMAY-U) comprises several key components aimed at improving urban housing conditions:

In-situ Slum Redevelopment (ISSR):

  • Offers Rs. 1 lakh per dwelling as Central Assistance to eligible slum residents during redevelopment.
  • Focuses on utilizing land as a resource in collaboration with private developers.
  • States/Cities can allocate this assistance to other slum redevelopment projects if needed.

Credit Linked Subsidy Scheme (CLSS):

  • Supports EWS/LIG and Middle Income Group (MIG) individuals seeking housing loans.
  • Provides interest subsidies as follows:
    • 6.5% on loans up to Rs. 6 Lakh
    • 4% on loans up to Rs. 9 Lakh
    • 3% on loans up to Rs. 12 Lakh
  • Designated Central Nodal Agencies (HUDCO, NHB, SBI) channel subsidies through lending institutions.

Affordable Housing in Partnership (AHP):

  • Offers Rs. 1.5 Lakh Central Assistance for each EWS dwelling by the Government.
  • Focuses on affordable housing projects targeting at least 35% of homes for EWS category.
  • States/UTs set affordability limits for EWS homes.

Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E):

  • Provides up to Rs. 1.5 lakh Central Assistance for constructing/enhancing individual houses.
  • Urban Local Bodies verify beneficiary information, land ownership, and eligibility.

-Source: The Hindu

February 2024