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With the aim of ensuring that every family has a solid house with essential facilities such as a water connection, toilet system, 24-hour electricity, and access roads by 2022, the Government of India launched the Pradhan Mantri Awas Yojana in 2015, with a mission of providing ‘Housing for All.’ Subsequently, the Ministry of Housing and Urban Poverty Alleviation of the Central Government issued guidelines for implementing PMAY under the ‘Housing for All’ campaign, specifically targeting the urban sector.

As of 2024, the Pradhan Mantri Awas Yojana (PMAY) continues to be a cornerstone in transforming the urban housing landscape in India.

Initially, the scheme covered 51 cities in Maharashtra as per the state government’s decision dated December 9, 2015. Since then, it has expanded to 409 cities across the state. The Central Government extended the scheme’s deadline by six months, until September 2022, as per a letter dated April 8, 2022. Following this, the Ministry of Housing and Urban Affairs extended the tenure for all components, except component 2 (CLSS), up to December 31, 2024.

The guidelines for PMAY, based on the ‘Housing for All 2022’ concept, include the following four components:

• Using Land for Redevelopment of Slums (ISSR): Redeveloping existing slum areas.
• Creation of Affordable Housing through Loan Linked Interest Subsidy (CLSS): Providing affordable housing for economically weaker sections and low-income groups.
• Creation of Affordable Housing through Private Partnership (AHP): Partnering with private entities to develop affordable housing.
• Subsidy for Construction of Individual Shelters for Economically Weaker Sections (BLC): Providing subsidies to individuals from economically weaker sections for constructing their own shelters.

For components 1, 3, and 4, the Maharashtra Housing and Area Development Authority (MHADA) and Urban Local SelfGovernment bodies (Nagarpalika Nagar Panchayat) are responsible for implementation, as per the Government Decision dated November 9, 2017. For component 2 (CLSS), the State Level Bankers Committee (HUDCO, NHB) serves as the steering agency.

Features of Pradhan Mantri Awas Yojana

Beneficiary families (husband, wife, and unmarried children) should not already own a house in India.
Central assistance of up to 30 sq. meters is permissible for Economically Weaker Sections (EWS) within specific limits. The scheme applies to 409 selected cities for components 1, 3, and 4 (excluding component 2).
Beneficiaries from Economically Weaker Sections (EWS) with an annual family income of up to Rs. 3 lakhs are eligible. In the Mumbai Metropolitan Region Development Authority area, the annual family income limit ranges from Rs. 3 lakhs to Rs. 6 lakhs.

Component 2 provides a loan-linked interest subsidy scheme available to EWS, Low-Income Group (LIG), and Middle-Income Group (MIG-1 and MIG-2) with incomes as specified. MIG benefits have been available since January 2017.
Central grants for Component 1 (ISSR) are Rs. 1 lakh each, and for BLC and AHP, Rs. 1.5 lakh each. State grants are also Rs. 1 lakh for ISSR, BLC, and AHP, in addition to the central grant. The remaining cost of the house is to be borne by the beneficiaries.

State Government Concessions for Effective Implementation

Government land is provided at a nominal rate of Rs. 1 per sq. meter (Government Decision dated September 19, 2016). 50% discount on calculation charges.Exemption from stamp duty for EWS and LIG beneficiaries on the first installment, with a fixed fee of Rs. 1000/-.As of the end of August 2024, under components 1, 3, and 4, a total of 4,31,665 houses have been sanctioned across 1,584 projects, with 1,66,697 houses completed and 2,64,339 in progress. Additionally, under component 2 (CLSS), 6,25,050 beneficiaries have received benefits.In Maharashtra, the Pradhan Mantri Awas Yojana (Urban) is progressing rapidly, with MHADA working to complete the projects by December 2024.

Insights shared by: Shivkumar Aade, Chief Engineer, Maharashtra Housing and Area Development Authority (MHADA)

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