Finance is important for achieving the target of Pradhan Mantri Awas Yojana (PMAY)
According to a recently released Investment Information and Credit Rating Agency of India Limited (ICRA) study, government funding is crucial to achieve the objective of housing for all by the year 2022.
- It may be noted that the Pradhan Mantri Awas Yojana (PMAY) was launched in the year 2015 with the aim of providing housing for all by the year 2022.
- Under PMAY, there is a plan to provide housing to 20 million households in urban India and 30 million in rural India.
- It is to be known that, Pradhan Mantri Awas Yojana (PMAY)-Rural is under the Ministry of Rural Development, and Pradhan Mantri Awas Yojana (PMAY)- is under the Ministry of Urban, Housing and Urban Affairs.
- Subsequently, the government had set a target of 21.4 million units under PMAY-Gramin and 11.2 million units under PMAY-Urban by 2022, while reducing the target.
- Till April 2021, 19.55 million houses have been sanctioned and 14.16 million houses have been completed through PMAY-Gramin. In contrast, out of 11.2 million housing units under PMAY-Urban, only 43 per cent have been constructed so far.
- Financing gap: The wide funding gap of Rs 1.24 lakh crore is to be closed in the next 18 months.
- The COVID-19 pandemic may further affect the execution of this scheme in the financial year 2021-22.
Other issues: Lack of land; Lack of land acquisition and infrastructure; delayed project approvals; Rising cost of raw material and labor; Maintained property records etc.
Source – The Hindu