Discourses on Affordable Housing in India and Best Practices under PMAY-U

 

discourses-of-affordable-housing-in-india-pdffrom RAGHU RAM

Initiatives to Enhance Urban Housing and Development

 ‘Land’ and ‘Colonisation’ are State subjects. Therefore, schemes related to housing and development for their citizens are implemented by States/Union Territories (UTs). However, Ministry of Housing and Urban Affairs (MoHUA) supplements the efforts of States/UTs by providing Central Assistance to provide pucca house to eligible beneficiaries across the country through Pradhan Mantri Awas Yojana – Urban (PMAY-U). The PMAY-U scheme is implemented through four verticals. The scheme period of PMAY-U has been extended upto 31.12.2025 to complete sanctioned houses without changing the funding pattern and implementation methodology.

Based on the learning from the experiences of implementation of PMAY-U, MoHUA has revamped the scheme and launched PMAY-U 2.0 ‘Housing for All’ Mission with effect from 01.09.2024 for implementation in urban areas across the country to support 1 crore additional eligible beneficiaries in next five years. PMAY-U 2.0 is implemented through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Interest Subsidy Scheme (ISS) and Affordable Rental Housing (ARH). The scheme guidelines of PMAY-U 2.0 are available at https://pmay-urban.gov.in/uploads/guidelines/Operational-Guidelines-of-PMAY-U-2.pdf.

Based on project proposals submitted by the States/UTs, a total of 122.06 lakh houses including 10.43 lakh under PMAY-U 2.0, have been sanctioned by the Ministry since inception of the scheme by the Ministry. Out of which 113.85 lakh houses have been grounded and 96.02 lakh are completed/delivered to the beneficiaries across the country, as on 24.11.2025.

As per the scheme guidelines of PMAY-U 2.0, Public/Private sector agencies are encouraged to construct houses for Economically Weaker Section (EWS) beneficiaries under AHP vertical. States/UTs have to formulate “Affordable Housing Policy” to provide various reforms and incentives to Public/Private agencies including reduction of stamp duty on time bound basis to develop affordable housing ecosystem. PMAY-U 2.0 supports States/UTs to formulate ‘Affordable Housing Policy’.

Further, in order to protect the interest of homebuyers and to ensure transparency and accountability in the Real Estate Sector, Parliament has enacted the Real Estate (Regulation and Development) Act, 2016 [RERA].                       

To ensure a transparent rental market, the Central Government formulated the Model Tenancy Act (MTA) to balance the rights of tenants and landlords and provide a speedy dispute resolution mechanism. Additionally, ARH vertical under PMAY-U 2.0 specifically addresses the need for adequate rental stock for urban dwellers. Under PMAY-U 2.0, States/UTs have been mandated to formulate Affordable Housing Policy (AHP) incorporating various reforms. One of the reforms is Nominal (less than 1%) Stamp Duty/Registration Charges for houses (up to 60 sqm.) registered under PMAY-U 2.0.                       

The larger role of Transit Oriented Development (TOD) is to integrate landuse and transport planning to develop compact growth centres within the influence zone on either side of the transit stations i.e., areas within walking distance. The TOD approach seeks to promote the use of public transport by developing high density zones in the influence area, which would increase the share of transit and walk trips made by the residents/workers to meet the daily needs and also result in reduction in pollution and congestion in the influence area. It also promotes all the basic needs of work/job, shopping, public amenities, entertainment in the influence zone with mixed land-use development which would reduce the need for travel in larger cities. Further, it also integrates the EWS and affordable housing in the influence zone by allocating a prescribed proportion of built-up area for them in the total housing supply.

WATER CRISIS MANAGEMENT IN TOWNS

Water and Sanitation is a State/ULB Subject. Ministry of Housing and Urban Affairs (MoHUA) plays supportive role through schematic interventions and advisories. It provides technical & financial support to State/ULBs.

As per the information received from States/UTs Govts., 35 States/UTs have adopted the provision of rainwater harvesting in their respective building bye laws as suggested by MBBL 2016. CPHEEO, MoHUA has also published Guidance Document on Creation of Rain Water Harvesting Parks. MoHUA through its National Missions i.e., Atal Mission for Rejuvenation and Urban Transformation (AMRUT) & AMRUT 2.0 is supporting the efforts of State Government for management of water crisis.

Under AMRUT, Urban Local Bodies/States may take up projects of rainwater harvesting under water supply sector as per their assessment/need. MoHUA approves State Annual Action Plans submitted by the States. Under Storm Water Drainage Sector in AMRUT, State/UTs have grounded 813 projects worth ₹2,999 crore of which, 739 projects worth ₹1,864 crore have been completed. This has resulted in elimination of 3,416 water logging points and another 372 water logging points are in progress of elimination. In addition to that, 1,222 km of length of drains are laid & 401 km length of drains are under progress.

ISSR Project

‘Land’ and ‘Colonization’ are State subjects. Schemes related to housing in their respective areas are implemented by States/Union Territories (UTs). However, Government of India is supplementing the efforts of States/ UTs by providing Central assistance under Pradhan Mantri Awas Yojana-Urban (PMAY-U) since June, 2015 to provide pucca house with basic civic amenities to all eligible urban beneficiaries through four verticals namely (i) Beneficiary-led individual house construction or enhancement (BLC) (ii) Affordable Housing in Partnership (AHP) (iii) Credit-Linked Subsidy Scheme (CLSS) and (iv) “In-Situ” Slum Redevelopment (ISSR).

Identification of eligible beneficiaries and implementation of projects under PMAY-U is the responsibility of State/ UT Governments concerned. All State/ UT Governments prepare project proposals as per demand in consonance with scheme guidelines of PMAY-U. 

Based on the project proposals submitted by States/ UTs, a total of 2,10,552 houses have been sanctioned for eligible beneficiaries under ISSR vertical of PMAY-U as on 20.03.2023.

Under PMAY-U, more than 1.20 crore houses have been sanctioned as on 20.03.2023. Of the sanctioned houses, 109.40 lakh have been grounded for construction; of which 72.72 lakh are completed/ delivered to beneficiaries. Of the 72.72 lakh completed houses as on 20.03.2023, 52.78 lakh houses have been sanctioned to Economically Weaker Section (EWS) beneficiaries.