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Pradhan Mantri Awas Yojana – Urban

Topics Covered:

  1. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.


Pradhan Mantri Awas Yojana – Urban


What to study?

For Prelims: PMAY- Urban- key features.

For Mains: Significance of the scheme, challenges ahead and measures needed to achieve the target.


Context: Cumulative no. of Houses Sanctioned Under PMAY(U) now more than 90 Lakhs.


What you need to know?

About PMAY- Urban:

  • Launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) in Mission mode.
  • It envisions provision of Housing for All by 2022, when the Nation completes 75 years of its Independence.


The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

  1. Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource.
  2. Promotion of Affordable Housing for weaker section through credit linked subsidy.
  3. Affordable Housing in Partnership with Public & Private sectors.
  4. Subsidy for beneficiary-led individual house construction /enhancement.


Beneficiaries and benefits:

The beneficiaries are poor and people living under EWS and LIG categories in the country.

  1. The government is providing an interest subsidy of 6.5% on housing loans which can be availed by beneficiaries for 15 years from start of loan date.
  2. The government will grant Rs 1 lakh to all the beneficiaries of the scheme. In addition, Rs 1.5 lakh will be given to all eligible urban poor who want to construct their houses in urban areas or plan to go for renovation in their existing houses.
  3. One can also avail loans under this scheme to build toilets in existing houses.


Ownership of houses:

House is to be allotted in the name of adult female member or in joint name and all houses to have toilet facility, drinking water and power supply. Preference is given to persons with disabilities, ST/ SC/ OBCs, minorities and transgender.


Challenges ahead:

  1. Government has to mobilise Rs 1 lakh crore in the next three years for achieving its target of building 1 crore houses.
  2. Other headwinds include: unavailability of land in prime areas, low participation of private developers on account of brand dilution and bidding mechanism.
  3. Also there are issues of stringent cost and time schedules resulting in low yields, increasing construction costs due to absence of bulk sourcing of materials, and lack of new technology that impacts productivity, cost efficiency and quality.


Sources: pib.