PRADHAN MANTRI AWAS YOJANA-GRAMIN

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Context:

The Union Minister of Rural Development relaxed the Pradhan Mantri Awas Yojana-Gramin (PMAY-G)'s automatic exclusion criteria to provide rural families with affordable and sustainable housing.

What are the Automatic Exclusion Criteria?

• PMAY-G utilises automated exclusion criteria to rank the most deserving households in order of priority to ensure that only individuals without adequate housing receive benefits.
• These criteria include asset ownership and income levels.
• Recently, the government relaxed exclusion criteria for some families:
  • • The scheme now covers families earning up to Rs 15,000 per month and owning two-wheelers, refrigerators, motorised fishing boats, and landlines. 

Families with motorised three- or four-wheelers, mechanised agricultural equipment, or a Kisan Credit Card with a credit limit over Rs 50,000 are still ineligible.

About Pradhan Mantri Awas Yojana (PMAY)

• It was launched in 2015 to ensure affordable housing for all by 2022. 
  • • The Union Cabinet extended it till December 31, 2024.
• It is divided into two key components: 
  • • PMAY-Urban (PMAY-U) for urban areas 
    • PMAY-Gramin (PMAY-G) for rural India.
• The Credit Linked Subsidy Scheme (CLSS) Awas Portal (CLAP) was launched to bring together key stakeholders to ensure accountability and transparency in the scheme's implementation.

PMAY-Urban (PMAY-U)

PMAY-U intends to address housing shortages for the urban poor, including economically disadvantaged individuals, low-income groups, and middle-income groups, by offering affordable housing options.

Key Features

• Economically Weaker Sections (EWS), Low Income Group (LIG), Middle IncomeHouseholds, and slum dwellers are the eligible beneficiaries.
• Under the Credit-Linked Subsidy Scheme (CLSS), eligible beneficiaries receive up to 6.5% interest subsidy on home loans.
• The scheme focuses on promoting women's ownership by the mandatory provision of registering the house in the name of the female head of the household or a joint title with the male head. 
• The scheme provides homes with basic facilities like; electricity, water, and sanitary facilities to improve living conditions.
• It provides special provisions for vulnerable populations, such as senior citizens, SCs, STs, OBCs, single women, and transgender people to promote inclusive urban settings.

As of July 2024, the scheme had approved 118.64 lakh houses, with 84.7 lakh already finished, highlighting the government's commitment to address urban housing shortages.

PMAY-Gramin (PMAY-G)

PMAY-G aims to offer affordable, long-term housing to the rural poor by constructing pucca houses for homeless families and those living in temporary shelters.

Key Features

• Beneficiaries under PMAY-G are identified based on the Socio-Economic and Caste Census (SECC) 2011. 
• The scheme provides financial assistance of Rs 1.2 lakh in plain areas and Rs 1.3 lakh in hilly areas to beneficiaries to help them build homes.
• PMAY-G houses have been constructed to survive in rural areas vulnerable to natural calamities such as floods and earthquakes.
• The scheme integrates with other schemes such as the Ujjwala Yojana and the Jan Dhan Yojana, improving overall development by providing LPG connections and financial inclusion.

2024-25 Budget: PM Awas Yojana Announced to provide three crores more houses in rural and urban areas. Addresses housing needs of 1 crore urban middle-class and poor families. Investment of Rs.10 lakh crore, including central assistance of Rs.2.2 lakh crore over 5 years.

Challenges faced by PM Awas Yojana

• Land acquisition is difficult in urban areas due to high costs and legal complications, while in rural areas, outdated or disputed land records complicate the process.
• The construction project faces budgetary and financial issues and delays in the development process.
• Bureaucratic obstacles and contractor issues may lead to implementation delays by requiring multiple levels of permission and coordination among government departments.
• The construction sector is facing issues in fulfilling quality standards and guaranteeing disaster resilience houses.
• Beneficiary identification is critical for proper recognition and avoiding duplication, but it can be difficult due to insufficient information.

Way Forward for PM Awas Yojana

• Reforming policies and public-private collaborations can help to simplify land acquisition processes and update property records.
• The focus must be on improving financial mechanisms through creative funding options such as municipal bonds and ensuring timely subsidy disbursement through simplified administrative processes.
• Single-window clearance systems for faster clearances and capacity building for contractors and local governments to increase efficiency are needed for implementation improvements.
• Strict monitoring is necessary during the building process to uphold quality standards, and real-time monitoring and reporting should be facilitated by the use of technology such as mobile apps and geo-tagging.
• Awareness campaigns to educate potential beneficiaries about the program and data integration to improve beneficiary identification accuracy.
• The main objectives should be to support the development of comprehensive infrastructure in housing projects and advance renewable energy sources and sustainable building techniques.

Standing Committee on Housing and Urban Affairs Report 2023
Key Observations	The government initially predicted a two-crore housing shortage in urban areas under PMAY-U, but a reconsideration indicated a demand for 1.23 crore units.  The Committee recognised that some persons, particularly the homeless, may be unable to benefit from the initiative due to strict eligibility criteria or a lack of construction land. The PMAY-U scheme approved 123 lakh houses, however, just 61 lakh houses were finished, demonstrating a large gap between construction start and completion.  Due to topographical limitations and economic constraints, less than half of the sanctioned houses in northeastern states have been constructed. The Economically Weaker Sections (EWS) face a high-cost burden for houses, with some states not contributing their share of project costs.  This results in beneficiaries sharing a larger financial burden, posing a challenge to their affordability.
Key Recommendations	The Committee recommends that the Ministry of Homes and Urban Affairs should perform a full impact evaluation of PMAY-U. Advising the government to either extend the scheme with required revisions or construct a new one to continue providing homes for the urban poor. The Committee suggested that Urban Local Bodies (ULBs) take immediate steps to guarantee that all houses built under PMAY-U have access to essential utilities such as water, power, and sanitation. The Ministry should regularly monitor project development and address delays, particularly in places such as the northeastern states, to fulfil the scheme's deadline. The Committee recommends that state governments pay for housing expenditures to minimise the financial burden on beneficiaries and make homes more affordable for people in the Economically Weaker Sections (EWS).  Central government contribution should be distributed only when the states have contributed their fair share. States should support beneficiaries in obtaining housing loans from banks and finance institutions.

Conclusion

PMAY-U seeks to promote inclusivity by expanding eligibility, providing basic infrastructure and services, enforcing stringent project timeframes, facilitating affordable housing financing, and utilising technology and corporate partnerships to achieve "Housing for All" by 2024.

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PRACTICE QUESTION Q. Critically analyse the role of Pradhan Mantri Awas Yojana in addressing urban housing shortages. How effective has the scheme been in improving housing conditions for the urban poor, and what further steps are needed to make urban housing policies more inclusive?