TAG: GS 2: GOVERNANCE AND SOCIAL JUSTICE
THE CONTEXT: As the current Union government completes two terms, one of its flagship programmes was Housing For All (HfA) by 2022, both in urban and rural areas, planned under the PMAY (Pradhan Mantri Awas Yojana) scheme in 2015.
EXPLANATION:
Pradhan Mantri Awas Yojana (PMAY):
- The Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 as a flagship program aimed at providing “Housing for All” by 2022.
- The two basic components of the scheme are Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G or PMAY-R ) for the rural poor.
- It encompasses both urban and rural areas, with a focus on addressing the housing needs of economically weaker sections and low-income groups.
- Under PMAY, various verticals are designed to cater to different segments of the population, including in-situ slum redevelopment, affordable housing partnerships, and beneficiary-led construction.
- Objectives of the PMAY Scheme are:
- Rehabilitation of Slum Dwellers: One of the primary objectives of PMAY is to rehabilitate slum dwellers by involving private developers in the process.
- Promotion of Affordable Housing: PMAY aims to promote affordable housing for weaker sections through Credit Linked Subsidy Schemes (CLSS) and partnerships with public and private sectors.
- In-Situ Slum Redevelopment (ISSR): The scheme targets the redevelopment of slums in their existing locations to provide better housing conditions for residents.
- Subsidy for Beneficiary-led Construction (BLC): PMAY provides subsidies to beneficiaries for constructing their own houses.
Performance of the PMAY Scheme
- Despite the initial target of achieving “Housing for All” by 2022, the scheme has faced challenges in implementation and has been extended until December 31, 2024.
- However, the progress has been inadequate, with significant shortfalls in the number of houses constructed compared to the actual demand.
- The scheme has fallen short of its objectives, with an estimated shortage of around 20 million houses in rural areas and three million in urban centers.
- The in-situ slum redevelopment (ISSR) vertical, which addresses a critical need in cities, has particularly underperformed, with only a fraction of the sanctioned houses completed.
- Several factors contribute to the challenges faced by PMAY, including land acquisition issues, inadequate community involvement in planning, and discrepancies between city master plans and PMAY objectives.
- Additionally, reliance on large capital-intensive solutions and limited government contribution to investment expenditure pose significant hurdles.
Private Sector Participation in Social Housing
- Role of the Private Sector:
- The PMAY scheme relies on private sector participation to bridge the gap in social housing.
- However, the success of private sector involvement has been mixed, with some projects failing to address the needs of slum dwellers effectively.
- Challenges in Private Sector Participation:
- Issues such as vertical growth leading to increased utility costs, inadequate housing design, and land ownership complexities have hampered the effectiveness of private sector participation.
- Moreover, the dichotomy between city master plans and PMAY objectives further complicates private sector engagement in social housing initiatives.
- Financial Contribution:
- While the private sector plays a role in PMAY, the bulk of the financial burden falls on beneficiary households, highlighting the need for greater government investment and support.
