Pradhan Mantri Awas Yojana (Urban)
Pradhan Mantri Awas Yojana (PMAY) was launched in June 2015 with an objective to provide affordable housing to urban and rural poor. This scheme has two components viz. Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G or PMAY-R) for the rural poor.
Pradhan Mantri Awas Yojana (Urban)
This scheme was launched by Ministry of Housing and Urban Poverty Alleviation (MoHUPA) to address the housing requirement of urban poor including slum dwellers. The key components of this programme are as follows:
- In-situ as well as ex-situ slum rehabilitation with participation of private developers.
- Credit linked subsidy for affordable housing to poor
- Affordable housing in partnership with private sector
- Subsidy for individuals for construction of house
Kindly note that the scheme is a Centrally Sponsored Scheme except the “credit linked subsidy” component which is a central sector component.
The beneficiaries of this scheme include Economically Weaker Section (EWS), low-income groups (LIGs) and Middle Income Groups (MIGs).
- 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.
- EWS category of beneficiaries is eligible for assistance in all four verticals of the Missions whereas LIG and MIG categories are eligible under only Credit linked subsidy scheme (CLSS) component of the Mission.
The identification is done on the basis of self-certificate or affidavit submitted by individual at the time of loan application. Further, the beneficiary family should not own a pucca house either in his name or in the name of any member of his family.
Coverage and Phases
The PMAY-U covers all 4041 statutory towns as per Census 2011 with focus on 500 class-I cities. It has three phases as follows:
- Phase I (April 2015 – March 2017) to cover 100 Cities selected from States/UTs as per their willingness.
- Phase II (April 2017 – March 2019) to cover additional 200 Cities
- Phase III (April 2019 – March 2022) to cover all other remaining Cities
Size of house
The mission supports construction of the houses up to 30m² carpet area with basic amenities. However, the states and union territories have freedom to determine the sizes of houses and other facilities.
In Situ Slum Redevelopment
One of the components of this scheme is the in-situ slum redeveloped based on Land as a resource with participation of private sector for providing houses to eligible slum dwellers. Under this component, the slums are developed in-situ and provided pucca houses in same land. Such land, whether that of central government or state government or local body must be denotified.
Credit Linked Subsidy
Under this component, the loan up to Rs. 6 Lakh with a interest rate of 6.5% for 20 years or more is provided to beneficiaries. The total interest subsidy under this scheme is Rs. 2.30 Lakh.
- The houses for availaling this subsidy should be less than 30sqm in carpet area.
- Preference is given to women, SC, ST, Manual scavengers, PwD and so on.
From January, 2017, the credit linked subsidy scheme is also available to tax paying middle class population who don’t have a pucca house. The people who have income between 6 and 18 Lakhs per annum are also thus eligible to get low interest loans for MIG houses. The carpet area of houses in such condition is fixed maximum @120 sqm for income up to 12 Lakh and @150 sqm for income up to 18 Lakh per annum.
Affordable Housing Through Partnership
Under this component, government provides financial assistance @Rs. 1.5 Lakh per EWS house being built up to builders in States/UTs/Cities.
Subsidy for Beneficiary-led individual house construction
Under this component, the individual eligible families belonging to EWS categories are provided central assistance of Rs. 1.5 lakh.