Govt’s Rs 48,000 crore allocation for PMAY to boost affordable housing

2/3/2022 1:06:00 PM

                The government’s Union Budget proposal of Rs 48,000 crore outlay for helping build low-cost houses in both rural and urban regions across the country is expected to boost the 
affordable housing segment and ancillary industries including cement and steel.

Given the backward and forward linkages with ancillary industries, the plan to support the construction of over 80 lakh such houses will help in pushing demand for construction 
materials. The Budget proposal is expected to help the government move towards the achievement of its stated objective of Housing for All.

“The Prime Minister housing scheme is expected to achieve the ‘Housing for all’ objective with 80 lakh beneficiaries. This will lead to higher growth of affordable housing. The spending 
on various housing projects is expected to create demand for real estate-linked industries,” said Radha Dhir, CEO & Country Head, India, JLL.

The announcement by the government about working closely with the state governments for a reduction of time for land and construction-related approvals is also expected to 
promote affordable housing for the middle class and economically weaker sections in urban areas.

“The government’s decision to allocate Rs 48,000 crores towards Pradhan Mantri Awas Yojna (PMAY), which will be key accelerating the pace of ‘Housing for All’ agenda that the 
government had set out to achieve. This allocation is significantly higher than the allocations in the last two budgets

which demonstrates the government’s commitment towards housing for all,” said Shishir Baijal, CMD, Knight Frank India. The government has allocated Rs 48,000 crore for the 
completion of 80 lakh houses under the PMAY scheme in the financial year 2022-23. This is significantly higher compared to Rs 27,500 crore that was allocated for the ongoing 
financial year for both urban and rural regions.

The central government has also stated that it will work with the state governments for reduction of time required for all land and construction related approvals, for promoting 
affordable housing for the middle class and Economically Weaker Sections (EWS) in urban areas.

“The government plan to work with the state government for a reduction of time for land and construction-related approvals promoting affordable housing for the middle class and 
economically weaker sections in urban areas is laudable. Easing land and construction-related approvals will help the development firms in meeting the delivery timelines,” said Rajan 
Bandelkar, president, NAREDCO.

The government has also proposed to work with the financial sector regulators to expand access to capital along with a reduction in the cost of intermediation for affordable housing.

Pradhan Mantri Awas Yojana (Urban) mission was launched in June 2015 with an objective to provide housing for all in urban areas by year 2022.

Under this scheme, the government has already sanctioned support to 1.14 crore houses, of which the construction of 54.45 lakh houses has been completed.

The mission provides central assistance to the implementing agencies through states and Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all 
eligible families and beneficiaries.

As per PMAY(U) guidelines, the size of a house for Economically Weaker Section (EWS) could be up to 30 sq meter carpet area, however, states and UTs have the flexibility to 
enhance the size of houses in consultation and approval of the ministry.

Source: The Economic Times

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