06-December-2024-Special-Article

PRADHAN MANTRI AWAS YOJANA – URBAN 2.0 (PMAY-U 2.0): A PATHWAY TO HOUSING FOR ALL

The Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) aims to ensure affordable housing for economically weaker sections, low-income groups, and middle-class families in urban areas. With its renewed focus, the scheme emphasizes inclusive growth by addressing urban housing shortages while aligning with India’s vision of “Housing for All” by 2047.

Core Themes and Features of PMAY-U 2.0

Objective and Target Beneficiaries

• The scheme aims to provide financial support for affordable housing to 1 crore urban poor and middle-class families over five years, starting from 1st September 2024.
• Priority is given to marginalized groups, including widows, single women, senior citizens, persons with disabilities, transgenders, Scheduled Castes (SCs), Scheduled Tribes (STs), and minorities.
• Special focus groups include sanitation workers, street vendors, artisans, Anganwadi workers, construction workers, and slum/chawl residents.

Key Features

• Four Vertical Approach: Beneficiaries can choose among four verticals based on their eligibility.
• Interest Subsidy Scheme (ISS): Offers interest subsidies on home loans for Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG).
• Government Assistance: Up to ₹2.5 lakh per housing unit is provided as financial aid.
• The scheme encourages participation of banks, housing finance companies (HFCs), and primary lending institutions (PLIs) for efficient implementation.

Vision for Housing by 2047

• PMAY-U 2.0 aligns with India’s ambition of becoming a developed nation by ensuring “Housing for All” by 2047.

Pradhan Mantri Awas Yojana: An Overview

Pradhan Mantri Awas Yojana-Gramin (PMAY-G)

• Launch: Restructured from Indira Awaas Yojana (IAY) in 2016 to address rural housing shortages.
• Objective: Provide a pucca house with basic amenities to rural families living in kutcha or dilapidated houses.
• Beneficiaries: SC/ST families, freed bonded laborers, widows, disabled persons, and other disadvantaged groups.
• Achievements: By March 2023, 2.85 crore houses were sanctioned, and 2.22 crore houses were completed.
• Cost Sharing:

• 60:40 ratio between the central and state governments in plain areas.
• 90:10 ratio for northeastern and Himalayan states.
• 100% central funding for Union Territories (UTs).

Pradhan Mantri Awas Yojana-Urban (PMAY-U)

• Launch: Initiated in June 2015 to address urban housing shortages.
• Objective: Provide a pucca house for all eligible urban poor by 2022.
• Scope: Covers statutory towns, notified planning areas, development authorities, and special urban regions.
• Status: 118.64 lakh houses sanctioned; over 88 lakh houses completed or delivered.

PMAY-U Implementation through Four Verticals

• In-Situ Slum Rehabilitation: Uses land as a resource to improve housing for slum dwellers through private participation.
• Credit Linked Subsidy Scheme (CLSS): Offers interest subsidies of:
  • 5% for EWS on loans up to ₹6 lakh.
  • 4% for LIG on loans up to ₹9 lakh.
  • 3% for MIG on loans up to ₹12 lakh.
• Affordable Housing in Partnership (AHP): Supports public-private partnerships for affordable housing projects.
• Beneficiary-Led Construction (BLC): Provides up to ₹1.5 lakh per unit for eligible EWS households to construct or enhance individual houses.

Socio-Economic Implications of PMAY-U 2.0

• Improved Access to Affordable Housing: Ensures better living conditions for urban poor and middle-class families, improving their quality of life.
• Economic Growth: Stimulates the housing and construction sector, creating jobs and boosting allied industries like cement and steel.
• Social Inclusion: Empowers marginalized groups, including women, through ownership rights and financial inclusion.
• Strengthened Urban Infrastructure: Facilitates integrated urban development by improving access to basic amenities like water, electricity, and sanitation.

Challenges in Implementation

• Limited Awareness: Many potential beneficiaries are unaware of the scheme’s benefits.
• Bureaucratic Delays: Procedural bottlenecks often slow down housing project approvals.
• Financial Constraints: Ensuring adequate funding for large-scale housing projects is a persistent challenge.

Strategies to Enhance Implementation

• Strengthen Monitoring Mechanisms: Establish robust tracking systems for timely completion of housing projects and disbursement of subsidies.
• Public Awareness Campaigns: Conduct campaigns to educate urban residents about PMAY-U 2.0’s benefits and eligibility criteria.
• Capacity Building for Financial Institutions: Train bank and HFC staff to assist applicants effectively and speed up the loan approval process.
• Use of Technology: Develop a user-friendly web portal for applications, tracking progress, and enabling seamless communication among stakeholders.
• Collaboration with State Governments: Foster partnerships between central and state authorities for better alignment in achieving housing targets.

Conclusion

PMAY-U 2.0 represents a significant step toward providing affordable housing to millions in urban areas, aligning with India’s broader development goals. By addressing socio-economic disparities and strengthening urban infrastructure, the scheme promotes inclusive growth. Its success, however, depends on effective implementation, public awareness, and collaboration among various stakeholders. With continued efforts, PMAY-U 2.0 can play a pivotal role in fulfilling the vision of “Housing for All” by 2047.

Mains Question:

2. Discuss the socio-economic impact of Pradhan Mantri Awas Yojana-Urban 2.0 on achieving inclusive urban development and its challenges in implementation. (150 WORDS)