Pradhan Mantri Awas Yojana (PMAY)

• Context (IE): In the first Cabinet meeting of the third term, the PM approved assistance for constructing three crore houses under the Pradhan Mantri Awas Yojana (PMAY).
• Of the 3 crore houses, two crore will be built under PMAY-Gramin and one crore under PMAY-Urban.

Pradhan Mantri Awas Yojana (PMAY)

• The Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme (centrally sponsored) launched by the Government of India in 2015 to provide affordable housing to the urban and rural poor.

Pradhan Mantri Awas Yojana (PMAY) – Rural or Gramin

• To provide pucca (permanent) houses with basic amenities to all houseless households and those living in kutcha (temporary) and dilapidated houses in rural areas.
• Target Beneficiaries: Households with an annual income of up to Rs. 3 lakh (based on SECC 2011).
• Unit Assistance: Financial assistance of Rs. 1.20 lakh in plain areas and Rs. 1.30 lakh in hilly/difficult areas is provided for the construction of a house.
• The scheme is implemented by the Ministry of Rural Development and is funded by the central and state governments in a 60:40 ratio for most states (90:10 for special category states; 100% for UTs).

Pradhan Mantri Awas Yojana (PMAY) – Urban

• To provide affordable housing to the urban poor, including slum dwellers.
• Target Beneficiaries: Households with an annual income of up to Rs. 3 lakh (Economically Weaker Sections, or EWS) and Rs. 3-6 lakh (Low-Income Groups, or LIG).
• Unit Assistance: Central assistance of Rs. 1.5 lakh for EWS and Rs. 1 lakh for LIG is provided, along with additional benefits like interest subsidies on home loans.
• The scheme is implemented by the Ministry of Housing and Urban Affairs and is funded by the central and state governments in a 60:40 ratio for most states.
• Components of the scheme:
  • In-situ Slum Redevelopment (ISSR);
  • Credit Linked Subsidy Scheme (CLSS) – interest subsidies on home loans.
  • Affordable Housing in Partnership (AHP) – encourages public-private partnerships and
  • Beneficiary-led individual house construction/enhancements (BLC)