May 30, 2024

Generals Studies Paper-2

Context: Recent estimates of the government show that there is a shortage of three million houses in urban centres.

About the Pradhan Mantri Awas Yojana (PMAY) Scheme

  • It is a flagship and Centrally Sponsored Scheme by the Union Ministry of Housing and Urban Affairs (MoHUA), launched in 2015, to provide affordable housing to the urban poor.


  • The PMAY scheme aims to address the urban housing shortage among the Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG) categories, including slum dwellers.
  • It includes the rehabilitation of slum dwellers with the participation of private developers, promotion of affordable housing for the weaker sections through Credit Linked Subsidy Schemes (CLSS), affordable housing in partnership with public and private sectors, and subsidy for Beneficiary-led Construction (BLC).
  • It ensures a pucca house to all eligible urban households (housing for all) by the year 2022, coinciding with the 75th year of India’s Independence.


  • It covers the 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 & regulations.

Components (Four Verticals)

  • In-situ Slum Redevelopment (ISSR): It involves the rehabilitation of slum dwellers with the participation of private developers.
  • Affordable Housing in Partnership (AHP): This involves the promotion of affordable housing for the weaker sections through partnerships with the public and private sectors.
  • Credit Linked Subsidy Scheme (CLSS): This scheme provides interest subsidy on housing loans to eligible beneficiaries.
  • Beneficiary-led Construction (BLC): This involves providing central assistance to eligible families for the construction or enhancement of houses.

Additional Initiatives of MoHUA under PMAY

  • Affordable Rental Housing Complexes (ARHCs): It is a sub-scheme under PMAY-U that aims to provide ease of living to urban migrants/poor in the Industrial Sector as well as in the non-formal urban economy by providing access to dignified affordable rental housing close to their workplace.
  • Global Housing Technology Challenge – India (GHTC-India): It aims to identify and mainstream a basket of innovative construction technologies from across the globe for the housing construction sector that are sustainable, eco-friendly, and disaster-resilient.

Progress of the PMAY Scheme

  • As of now, the PMAY (Urban) scheme has sanctioned 118.64 lakh houses, grounded 114.15 lakh houses, and completed 82.16 lakh houses.
  • The Central Assistance Committed is ₹2 Lakh Cr., and the Central Assistance Released is ₹163926 Cr. The total investment is ₹8.07 Lakh Cr.

Challenges ahead of the scheme:

  • Housing Shortage: The urban housing shortage has increased by 54%, from 1.88 crore in 2012 to 2.9 crore in 2018.
    • As of April 2024, there is a shortfall of around 40 lakh houses from the sanctioned and completed segments.
  • Implementation Issues: There is a shortfall of around 40 lakh houses from the sanctioned and completed segments.
  • In-situ Slum Redevelopment: The ISSR vertical has failed, with only 2,10,552 houses sanctioned for eligible beneficiaries.
    • Under the ISSR, only 2,10,552 houses have been sanctioned for eligible beneficiaries.
    • Even if the remaining houses are constructed by the end of 2024, it would have addressed just about 37% of the real need.
    • Almost 2.4 crore households will still be without a roof.
  • Unmet Targets: The PMAY-U has only addressed about 25.15% of the housing shortage by delivering 80 lakh homes.

Future of the PMAY Scheme

  • In August 2022, the government approved the continuation of the PMAY-U up to December 31, 2024, for the completion of already sanctioned houses till March 31, 2022.
  • However, the current housing programme, which was a kind of merger of the Rajiv Awas Yojana into the PMAY, has spent over $29 billion in the last five years providing support for both rural and urban low-cost housing.
  • Despite this focus and budgetary infusion, ‘Housing for All’ remains an unfulfilled promise.


  • PMAY is a significant step towards achieving the goal of ‘Housing for All’ by 2022. It has made some progress in addressing India’s urban housing shortage, but fallen short of its ambitious goals.

The challenges faced by the scheme highlight the complexities of urban development and the need for comprehensive and sustainable solutions.

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