PM Modi’s New Scheme to Help Urban Poor Build Houses

  • August 16, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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PM Modi’s New Scheme to Help Urban Poor Build Houses

Subject :Schemes

Context:

Prime Minister Narendra Modi on August 15 announced a new scheme to help urban poor build houses in cities. Under this program, they would receive relief in interest rates and loans taken from banks to construct their houses.

Scheme Details

  • Aimed at assisting the urban poor in building houses in cities.
  • Relief in interest rates and loans from banks for house construction.
  • Targeting those living in rented houses, slums, chawls, and unauthorized colonies.
  • Middle-class families also benefit from the scheme.
  • Government’s support to help save lakhs of rupees for the beneficiaries.

Existing Scheme – Pradhan Mantri Awas Yojana Urban (PMAY-U)

  • Launched in 2015 by the Ministry of Housing and Urban Affairs (MoHUA).
  • Mission to address urban housing shortage for economically backward sections.
  • Constitutes a key component of the ‘Housing for All’ initiative.
  • Ensuring ‘pucca’ houses for eligible urban households by 2022.
  • The scheme extended till December 2024 to complete all sanctioned houses.
  • Divisions: beneficiary-led construction, affordable housing in partnership, in-situ slum redevelopment.
  • Seeks to transform slums into viable urban neighborhoods.
  • Credit-linked subsidy scheme (CLSS) not extended beyond March 31, 2022.

Beneficiaries

  • Female members of beneficiary families are preferred as the head of the household.
  • Widows, transgenders, and differently-abled individuals receive special attention.
  • Focuses on empowering women through property ownership.
  • Beneficiary selection involves thorough surveys and verification.

Verticals of PMAY-U

  1. In Situ Slum Redevelopment (ISSR)
    • Encourages the use of underutilized slum land for housing development.
    • Incorporates private sector participation to leverage investment and expertise.
    • Aims to improve the quality of life in slums by providing better amenities.
  2. Affordable Housing through Credit Linked Subsidy (CLSS)
    • Aims to make housing loans affordable for EWS, LIG, and MIG
    • Interest subsidy benefits are linked to the loan amount and income category.
    • Reduces the financial burden on beneficiaries and promotes homeownership.
  3. Affordable Housing Through Partnership (AHP)
    • Promotes collaboration between public and private sectors for housing projects.
    • Supports the creation of a diverse mix of housing options within projects.
  4. Beneficiary-led Individual House Construction (BLC)
    • Emphasizes beneficiary-driven construction or improvement of houses.
    • Beneficiaries can use the assistance for constructing new houses or adding rooms.

Features of PMAY-U

  • Demand-driven Approach
    • Conducts surveys to assess housing demand at the city and state levels.
    • Beneficiary demand shapes the scale and scope of housing projects.
    • Helps avoid underutilization of resources and mismatched housing supply.
  • Geotagging
    • Geotagging involves adding geographical coordinates to identify the location.
    • Houses are geotagged using the Bhuvan platform developed by ISRO.
    • Enhances transparency by enabling beneficiaries to verify house locations.
  • Women Empowerment
    • Provides recognition and ownership rights to women in property matters.
    • Helps in bridging the gender gap in property ownership.
    • Promotes women’s financial security and decision-making power.

Various Initiatives under PMAY-U

  • Affordable Rental Housing Complexes (ARHCs)
    • Aims to provide rental housing for urban migrants and informal sector workers.
    • Aims to curb the growth of slums and improve living conditions.
    • Private and public agencies are encouraged to participate in creating ARHCs.
  • Global Housing Technology Challenge (GHTC) – India
    • Aims to identify innovative, sustainable, and affordable construction technologies.
    • Focuses on reducing construction time and costs while maintaining quality.
    • Seeks to promote the adoption of advanced construction methods.
  • CLSS Awas Portal (CLAP)
    • A web-based platform to monitor the progress of housing projects.
    • Ensures timely subsidy disbursement and efficient project tracking.
    • Increases transparency and accountability throughout the implementation process.

Progress of PMAY-U

  • A total of 75.51 lakh completed houses, 71.39 lakh occupied.
  • Uttar Pradesh leads with 12,87,307 houses completed.
  • Gujarat, Andhra Pradesh, and Tamil Nadu also show significant progress.

Challenges

  • Land Acquisition and Availability: Scarcity of available land for housing projects in densely populated urban areas.
  • Quality Assurance: Ensuring the durability and quality of constructed homes to prevent future maintenance issues.
  • Private Sector Participation: Encouraging private developers to participate by addressing concerns related to profitability and project viability.
  • Technology Adoption: Overcoming resistance to adopting new construction technologies and materials.

Financial Sustainability: Balancing the need for affordable housing with the financial sustainability of the scheme.

PM Modi's New Scheme to Help Urban Poor Build Houses Schemes