Smt. Nirmala Sitharaman, the Hon’ble Minister of Finance, Government of India has announced a scheme for building 2 crore more houses for the rural poor in the next five years under the existing Pradhan Mantri Awas Yojana (Grameen) (PMAY-G). The minister announced this while presenting the Union Budget 2024 on February 1, 2024. In this blog we examine the scheme in detail.
With elections round the corner, the Narendra Modi government which would be seeking a fresh mandate presented the interim budget that will be in force until a new government is formed post the general elections scheduled later this year.
While presenting the budget, Ms. Sitharaman said that the government will launch a scheme to help the deserving sections of the middle class living in rented houses, slums or chawls and unauthorized colonies to buy or build their own houses. She highlighted that the Pradhan Mantri Awas Yojana (Grameen) would continue.
What is the Pradhan Mantri Awas Yojana (Grameen) scheme?
The PMAY-G is a flagship affordable housing program initiated by the Government of India. It aims to provide housing for all in rural areas by constructing pucca houses with basic amenities for households without a proper dwelling. The scheme primarily focuses on economically weaker sections, scheduled castes, scheduled tribes, and other marginalized communities in rural India.
What are the key features of PM Awas Yojana (Grameen)?
The primary features of PMAY-G scheme are:
Objective: The primary goal is to ensure that every family in rural areas has a secure and habitable house with basic amenities.
Beneficiaries: The scheme targets homeless and those living in dilapidated houses. Priority is given to vulnerable groups, including SCs, STs, and BPL (Below Poverty Line) families.
Financial Assistance: Eligible beneficiaries receive financial assistance from the government to build a pucca house. The funds are typically transferred directly to the bank accounts of the beneficiaries.
House Design and Construction: The houses constructed under this scheme are designed to be earthquake-resistant and have basic amenities such as a toilet, electricity, and water supply.
Ownership: The ownership of the house is in the name of the woman or jointly with the man of the household. This is done to promote women’s empowerment and their role in decision-making.
Monitoring and Implementation: The implementation and monitoring of the PMAY-G involve collaboration between the central, state, and local governments.
How many houses are expected to be constructed in the next five years under the Pradhan Mantri Awas Yojana (Grameen) Scheme?
Approximately two crore houses are expected to be constructed in the next five years to meet the requirements arising from the burgeoning public demands. The overall target under the PMAY-G scheme is to construct 2.95 crore pucca houses with basic amenities by March 2024.
How the assistance under Pradhan Mantri Awas Yojana (Grameen) Scheme given?
Central assistance under the PMAY-G scheme is released by the centre directly to the state / union territories. Also the release of these funds to beneficiaries in various districts and blocks are done by the respective state governments or the union territory administrations. During FY 2018-19 to FY 2022-23 an amount of around Rs. 1.6 lakh crores have been released.
Will the PMAY-G scheme benefit home buyers?
The introduction of a housing initiative designed to assist deserving segments of the middle class in acquiring or constructing their own homes is promising and is expected to contribute positively to the expansion of the housing market.
More information on Pradhan Mantri Awas Yojana (Grameen) Scheme can be accessed here.