Let There Be Home For All By 2022

Despite criticism from all quarters, Narendra Modi-led BJP government has to be lauded for some of its initiatives. One among them is Pradhan Mantri Awas Yojana (PMAY). For the sake of understanding, this can also be called Pradhan Mantri Housing Scheme for better understanding. Under the initiative, the BJP government intends to build houses for everyone by 2022. The scheme was launched in June 2015. Pradhan Mantri Housing Scheme is aimed specifically for those in the category of economically weaker section (EWS) and Lower/Middle Income Group (LIG/MIG) in India. The Scheme aims to build over two crore houses around the country by 2022.

Unique aspects in PMAY:

· Not just for new constructions, scope of the scheme extends to renovating the existing house as well

· The scheme clarifies beneficiary as a family including husband, wife and unmarried children

· Under the scheme, houses acquired should be in the title of female head of the household or in the joint name of male head of household and his wife

· AADHAAR card, Bank A/C No. and PAN number are must to utilize the scheme

· Benefits under the scheme can be availed only once and under just one vertical

· Necessary infrastructure, such as power, water and drainage/sanitation, should be there for homes to qualify as completed projects

Who all are eligible under the scheme?

A) Age of the person should not exceed 70 to benefit under the scheme

B) Economic Weaker Section with an annual income lesser than Rupees 3 Lakh

C) Lower Income Group with annual revenue between Rupees 3,00,001 to 6,00,000 Lakh

D) Mid Income group (Included only in 2017)

E)  A person, who does not have a house in the name of any family member, or in his name in any part of India

Four Important Elements in the Scheme

1. Build homes for slum dwellers by joining hands with private developers.

2. It intends to offer a credit-linked subsidy to weaker and mid income sections for loans taken to construct new houses or renovate existing houses. As for the ones in EWS and LIG category who plan to take a loan of up to ₹6 lakh, an interest subsidy (concession) of 6.5 per cent for duration of 15 years is available.

3. The Government will offer financial help for affordable housing projects executed along with States/ Union Territories for the EWS.

4. Will extend direct financial assistance of ₹1.5 lakh to EWS.

The Bottomline:

This is a noble gesture on the part of the BJP government. Let us hope that the Pradhan Mantri Housing Scheme encourages the real estate and construction sector to focus on affordable housing segment as well. The Modi regime has shown the way; let us hope realty majors also start looking at those languishing at the bottom of the social hierarchy.