In the year 2015, the central government introduced PMAY or Pradhan Mantri Awas Yojna to provide comprehensive housing solutions for the economically weaker group and Low-Income sections. According to the plan, the government promised to provide housing solutions to all by 2022, even for the middle-income group.
Being a developing country, such schemes are always welcomed by the common people. Subsidies and discounts offered under this scheme are quite lucrative, and as a result, will inspire many to own properties, especially in the rural areas. Provisions are made to provide pukka houses, sanitation, electricity, water and other basic facilities to the weaker sections.
PMAY plans to provide subsidies that are credit-linked to the MIG (mid-income group) when they are taking loans on renovations or fresh constructions. For the low and medium income groups, the government reduces the cost by 1-2.3 lacs. The scheme aims to provide 18 million homes to the urban population, and 30 million homes to the rural population in India by 2022.
If you think that you can reap the benefit from PMAY if you have small accommodation, you are wrong. You can buy a villa or a bungalow and take loans of 1 crore as well. The construction and selling of big and expensive houses will boost the real estate market & the sale of real estate complexes and will help contribute to the nation’s GDP too.
Hardeep Singh Puri, the current Union Minister of State with Independent Charge in the Ministry of Housing and Urban Affairs says that the scheme will be quite successful in both rural and urban areas and will be able to meet the targets much before 2022. The scheme is on its way to meet the target to deliver 1 crore housing accommodations to the people by the end of next year, that is, by 2019. However, there are a number of hurdles coming on the way of PMAY like the forceful evictions of people under HLRN or Housing and Land Rights Network.
PMAY is welcomed by mixed reactions
Various states have co-operated with the PMAY scheme at various levels. While UP is the state where the highest percentage of PMAY implementation (61%) has been done in the rural areas, Chhattisgarh has achieved only 43% of the target and Madhya Pradesh has achieved 44% of the target.
As per the reports, West Bengal got nearly 60 thousand housing solutions in more than 80 cities till date, with near 2.5 crores investment. More than 50 thousand housing solutions have been sanctioned in Rajasthan’s 48 cities with an investment budget of more than 2.5 crores.
The PMAY-G (Pradhan Mantri Awas Yojna-Gramin) was targeted towards the rural areas of India and it has secured the 1st position in the country. The construction targets of 2016-17 and 2017-18 are completed in a year and for the Uttar Pradesh alone 85% of the work is done.
Much of state government support is required for the effective implementation of PMAY, and this will provide an instant boost to the sales figure of properties and reduction of the property prices instantly. Though the scheme is yet to be implemented in a full-fledged way, it still has 4 years to catch up. Hope that the scheme gets 100% success by the year 2022.