It is a flagship Mission launched in 2015 with objective “Housing for all”. The Mission addresses urban housing shortage among the Economically Weaker Section (EWS)/ Lower Income Group (LIG) and Middle Income Group (MIG) categories including the slum dwellers. It adopts a demand driven approach wherein the Housing shortage is decided based on demand assessment by States/Union Territories. This scheme is Implemented by Ministry of Housing and Urban Affairs (MoHUA). This scheme is Covered at Entire urban area consisting of Statutory Towns, Notified Planning Areas, Development Authorities, Special Area Development Authorities, Industrial Development Authorities or any such authority under State legislation which is entrusted with the functions of urban planning and regulations. The duration of the Mission was initially seven years from FY 2015-16 to FY 2021-22. The Mission has now been extended up to 31st December, 2024 with all verticals except Credit Linked Subsidy Scheme (CLSS) vertical to complete houses sanctioned up to 31 March 2022.
PMAY (U) is being implemented through the following four verticals:
Gap in housing demand assessment: Actual demand for housing under the scheme stands at 1.23 crore and not the estimated 2 crore.
Lack of basic amenities: As of December 2022, 5.6 lakh houses were not delivered to beneficiaries due to lack of basic services.
Timeline for grounding and completion: Only 87% sanctioned houses have been grounded till December 2022 and 61 lakh houses have been delivered to beneficiaries. As of October 2022, less than 50% of houses have been completed in north eastern states (except Tripura) due to geographical and economic reasons.
High-cost burden on beneficiary: Some states such as Nagaland, Manipur, Meghalaya, and Rajasthan are not providing their share. As a result, the average beneficiary contribution comes about to 60%.
Emphasis on BLC: Majority of the urban homeless are also landless and purchasing land in an urban area is more challenging than constructing a house on it. Therefore, the over emphasis on BLC vertical dilutes the objective of the scheme.
Low sanctioning of houses under ISSR vertical: The number of houses sanctioned under it is low. Against a demand of 14.35 lakh houses, only 30% were sanctioned.
Suggestions by the Parliamentary Standing committee on Housing and Urban Affairs:
Focus on Outcome Rather Than Output: The committee suggests that the focus should shift from the number of houses completed to the number of houses actually occupied by beneficiaries.
Involvement of Beneficiaries: Beneficiaries should be identified prior to construction, involved as stakeholders from the initiation of the project, and their feedback should be acknowledged and acted upon throughout the project to avoid later issues with unoccupied housing.
Collating Data on De-Notification of Slums-Land: The committee recommends that the Ministry should collate data on the impact of ISSR vertical in terms of de-notification of slums by States and place the same before the Committee.
Impact Assessment and Necessary Changes: The Ministry needs to conduct an impact assessment and accordingly extend the scheme with necessary changes or formulate another scheme to provide housing for the urban poor.
Strict Timelines for Construction: The Ministry should ensure strict timelines for starting and completing the construction of houses.
Varying Central Assistance Based on State Factors: Uniform and fixed central assistance across states may be removed and should vary according to factors such as a state's topography.
Smoothening of Pre-Construction Processes: Availability of land, seeking statutory clearances, and clearing slums must be smoothened before starting the project.