Why is it in the news?

• One of the flagship programmes of the current Union government, the Pradhan Mantri Awas Yojana (PMAY), aimed to achieve Housing for All (HfA) by 2022 in both urban and rural areas.

An Overview of PMAY SchemeTop of Form

• Pradhan Mantri Awas Yojana (PMAY) is a centrally sponsored scheme aimed at providing housing for all by 2022, covering both urban and rural areas.

Objectives:

• Rehabilitation of slum dwellers with private developers’ participation.
• Promotion of affordable housing for weaker sections through Credit Linked Subsidy Schemes (CLSS).
• Affordable housing in partnership with public and private sectors.
• Subsidy for Beneficiary-led Construction (BLC).

Scheme Performance:

• Despite the continuation of PMAY-Urban (PMAY-U) until December 31, 2024, completion remains a challenge. There is a significant shortage of houses in both rural and urban areas.
• Urban housing shortage increased by 54% from 2012 to 2018, indicating a failure in meeting housing demands.
• In-situ slum redevelopment (ISSR) vertical has particularly faltered, with only a fraction of the required houses sanctioned.
• PMAY-U has addressed only about 25.15% of the housing shortage, leaving millions without adequate housing.

Challenges and Issues:

• Private sector participation, while significant, has faced challenges, including inappropriate building designs and high recurring costs for residents.
• Land availability, especially for ISSR, has been a major obstacle, with many areas being unsuitable for redevelopment.
• Lack of community involvement in planning ISSR projects has led to ineffective solutions.
• Discrepancies between city master plans and PMAY-U goals have hindered effective implementation, with master plans favouring capital-intensive solutions over social housing.
• The central government’s contribution to the scheme is relatively low, with the bulk of the investment coming from beneficiary households and state governments.
• The architecture of PMAY lacks focus on addressing the needs of the landless and the poorest segments of society.
• Beneficiary-led construction (BLC) and CLSS verticals dominate, with limited government involvement beyond cost-sharing and interest subsidies.
• Slum rehabilitation under ISSR accounts for a small fraction of total beneficiaries.