Started in June 2015, Pradhan Mantri Awas Yojana (PMAY) aims to ignite the idea of ‘housing for all’. Carried to action by the Narendra Modi government, this scheme proposes to build 2 crore houses by 2022 for the urban and rural population of India. The policy is meant to indorse reasonably priced housing for those belonging to economically weaker sections of society and low-income groups.
Pradhanmantri Awas Yojna as an initiative aims at developing India’s housing sector in many ways, such that the entire population can value from subsidized home loan interest rates. This scheme also upholds the use of eco-friendly building material usage for the construction of homes.
PMAY scheme has two major sections: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and Pradhan Mantri Awas Yojana (Gramin) (PMAY-G and PMAY-R). PMAY-U is pertinent to the urban population while PMAY-G and PMAY-Rare applicable for the rural population.
PMAY-U consists of three schemes, namely: EWS (Economically Weaker Sections)/LIG (Low Income Group), CLSS (MIG-I) and CLSS (MIG-II).
PMAY scheme comprises of four key aspects. One, it aims to transform slum areas by building homes for slum dwellers in collaboration with private developers. Two, it plans to give a credit-linked subsidy to weaker and mid income sections on loans taken for new construction or renovation of existing homes. Three, the Government will chip in with financial assistance for affordable housing projects done in partnership with States/ Union Territories for the EWS. Four, it will extend direct financial assistance of ₹1.5 lakh to EWS.
The PMAY will expectantly incentivize India’s construction and realty sector to shrink its traditional fascination with affluent home buyers in the cities.