Extra Benefits Announced Under Pradhan Mantri Awas Yojana

Why in NEWS?

Recently, the Narendra Modi-led government has taken a few steps in the direction of making 'Housing for all' a reality in the next 5 years(by 2022). These steps has expanded the scope of the Pradhan Mantri Awas Yojana (PMAY) and will cater the housing needs of the mid-income group, the Economically Weaker Sections (EWS) and low-income group.

What is Pradhan Mantri Awas Yojana (PMAY)?

Last year, the Central Government had approved to replace the existing Indira Awas Yojana with Pradhan Mantri Awas Yojana – Gramin as a part of ‘Housing for All’ by 2022 mission.
According to government estimates, India has a shortage of around 2 crore houses needed by the rural and urban poor, at a lower price. The Pradhan Mantri Awas Yojana(PMAY) aims to tackle this shortfall of housing units.

According to Ministry of Housing and Urban Poverty Alleviation, the Mission is being implemented during 2015-2022 and provides central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for:

• In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation
• Credit Linked Subsidy
• Affordable Housing in Partnership
• Subsidy for beneficiary-led individual house construction/enhancement. 

Nodal Agencies Appointed for implementing PMAY

National Housing Bank(NHB) and Housing and Urban Development Corporation (HUDCO)have been identified as Central Nodal Agencies(CNAs) by Ministry of Housing and Urban Poverty Alleviation(MoHUPA) for the purpose of implementation of this scheme. As a part of the implementation process, every Primary Lending Institution (PLI) needs to Tie up with one of these CNAs. Accordingly, IDBI Bank has tied up NHB for implementation of the scheme.

What are the New Announcements?

With new announcements by the government:

• The mid-income group, the economically weaker sections(EWS) and low-income group in cities will get 4% exemption on interest for home loans upto Rs. 9 lakh and 3% exemption upto Rs. 12 lakh.
• Under PMAY-Gramin, government will build 33% more houses than earlier planned by the government. 
• Government will provide loans in villages with 3% exemptions for building a new house. Also, this loan is available for renovation of houses in the villages. 
• Under the new scheme of housing for all 2022, the central assistance per house for EWS has been planned to increase to 1.5 lakh rupees from 70,000 rupees.

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