The Pradhan Mantri Awas Yojana (PMAY) envisions the provision of ‘Housing for All’ by 2022, when the Nation completes 75 years of its Independence. Data indicates that less than 50% of the Houses sanctioned under PMAY (Urban) were constructed by the end of 2020-21. In the case of PMAY (Gramin), the completion rate is more than 80%.
The Pradhan Mantri Awas Yojana, abbreviated as PMAY, is an initiative of the Union Government under which affordable housing is to be provided to all the eligible beneficiaries in the country by providing subsidies and financial assistance, under the ‘Housing for All’ Mission. The original target was to construct 2 Crore houses with basic amenities. The scheme has two components.
- PMAY Urban (PMAY-U) is being implemented in urban areas by the Ministry of Housing & Urban Affairs. It seeks to address the housing requirement of urban poor including slum dwellers through programs for Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource, Promotion of affordable housing for weaker sections through credit linked subsidy, affordable housing in partnership with Public & Private sectors, and Subsidy for beneficiary-led individual house construction or enhancement.
- PMAY Gramin (PMAY-G) is being implemented by the Ministry of Rural Development in rural areas. It is a restructured program of the erstwhile Indira Awas Yojana (IAY) which began in the mid-1990s as an independent program. The scheme aims at providing a pucca house with basic amenities to all houseless householders living in kutcha and dilapidated houses by 2022 when India completes 75 years of its Independence.
In this story, we look at the progress in both these flagship schemes as the targets have been set to be achieved by next year (2022). We look at the overall and state-wise progress in the completion of construction of households and the allocation and release of central assistance for both these schemes.
40% of sanctioned houses were completed under PMAY-Urban by 2020-21
According to a parliament response in Lok Sabha from July 2021, the construction of a total of 45.7 lakh houses was complete under PMAY-U in the five-year period from 2016-17 to 2020-21 while over 1.12 crore houses were sanctioned for construction. Overall, about 40% of the sanctioned houses were completed under PMAY-U.
On the other hand, during the same period, construction of a total of 1.38 crore houses was complete under PMAY-G while over 1.99 crore houses were sanctioned. Over 69% of the sanctioned houses were complete under PMAY-G by the end of 2020-21.
11 states accounted for 86% of houses complete under PMAY-U
Of the 45.7 lakh houses constructed under PMAY-U, 7.84 lakh houses were completed in Uttar Pradesh and 5.53 lakh houses in Gujarat. Along with Maharashtra (4.36 lakh), Madhya Pradesh (4.29 lakh), and Andhra Pradesh (4.21 lakh), where more than 4 lakh houses each were constructed, the five states together accounted for more than 57% of the houses constructed under PMAY-U by the end of 2020-21. In all, 11 states where more than 1 lakh houses each were constructed, together accounted for 86% of the houses constructed under PMAY-U by the end of 2020-21.
Six states alone accounted for nearly 75% of the houses constructed under PMAY-G
Under PMAY-G, 22.9 lakh houses were constructed in West Bengal alone by the end of 2020-21. This accounts for 16.6% of the national total of 138 lakh houses constructed under PMAY-G by the end of 2020-21. More than 10 lakh houses each were constructed under the scheme in the states of Bihar (19.2 lakh), Madhya Pradesh (18.4 lakh), Odisha (15.9 lakh), Uttar Pradesh (14.5 lakh), and Rajasthan (11.3 lakh) which together, along with West Bengal, accounted for 74% of the houses constructed under PMAY-G till 2020-21. No house has been sanctioned in Telangana under PMAY-G since the state government is implementing a 2BHK housing scheme on its own.
The percentage of completed houses in urban areas was the highest in Telangana among large states
Delhi had completed construction of over 36,462 houses in the five years between 2016-17 and 2020-21 while sanction was given to more than 25,000 houses. Thus, the completion rate is more than 100%. Among other states, Goa had completed construction of 97.7% of the houses sanctioned during the period while Telangana reported the highest completion among the larger states with more than 85% of the sanctioned houses completed, followed by Kerala with 73.6%, and Gujarat with 67.1%. On the other hand, the completion was the lowest in Manipur with less than 9% of the sanctioned houses completed. Andhra Pradesh had the least completion rate of 20.7% among large states.
Completion under PMAY-G was lowest in Karnataka among larger states
Under PMAY-G, the completion rate was close to 99% in Sikkim, followed by Haryana (97%), and Tripura with 94%. However, the completion was relatively lower in the remaining northeastern states. Among large states, the completion was lowest in Karnataka with 50%.
Only 56% of funds sanctioned under PMAY-U and 84% under PMAY-G were released in five years
Under PMAY-U, the Centre had sanctioned almost Rs. 1.65 lakh crores for the implementation of the scheme to the states/UTs in the five years between 2016-17 and 2020-21. However, of this, only about Rs. 92,574 crores were released during this period, amounting to 56% of the total amount sanctioned by 2020-21. Further, only 45% of the total sanctioned central assistance was utilized for PMAY-U by the end of 2020-21.
Likewise, the central assistance sanctioned under PMAY-G was also close to Rs.1.65 lakh crores of which only Rs. 1.37 lakh crores were released. This amounted to 84% of the amount sanctioned by the end of 2020-21, for implementation of PMAY-G. The data on PMAY-G was sourced from the PMAY-G dashboard.
The greatest amount under PMAY-U sanctioned to Uttar Pradesh
Out of the total sanctioned funds under PMAY-U, Uttar Pradesh received the greatest amount of over Rs. 26,595 crores. The sanctioned amount was over Rs. 20,000 crores each for the states of Andhra Pradesh, and Maharashtra. The allocation was over Rs. 10,000 crores each for the states of Gujarat, Madhya Pradesh, and Tamil Nadu. These six states together accounted for 67% of the total sanctioned amount under PMAY-U by the end of 2020-21. The amount released to these states is also 67% of the total amount released by the union government by the end of 2020-21.
7 states accounted for 74% of funds released under PMAY-G
Under PMAY-G, the greatest amount was sanctioned to West Bengal with Rs. 25,000 crores followed by Bihar with over Rs. 24,000 crores. Madhya Pradesh, Uttar Pradesh, Odisha, Rajasthan, and Assam were sanctioned more than Rs. 10,000 crores each of central assistance. These seven states accounted for 74% of the total sanctioned amount and 76% of the amount released under PMAY-G by the end of 2020-21.
The percentage of funds released was low for Karnataka and AP under PMAY-U
Under PMAY-U, the percentage of funds released (compared to the sanctioned amount) was highest for Goa with 99.4%. Among large states, close to 80% of funds were released for Gujarat. Only 24% of the funds were released for Haryana, the lowest in the case of states. Karnataka had less than 47% of funds released and Andhra Pradesh, 37.1%- lowest among large states.
Under PMAY-G, more than the sanctioned funds were released for Andhra Pradesh, Uttarakhand, and Jharkhand. Close to 100% of the sanctioned funds were released for West Bengal. However, only 9.7% of the sanctioned amount was released for Kerala. Not a single rupee has been sanctioned or released for Kerala in the last three years under PMAY-G.
Need to ramp up Construction of houses under PMAY-U
Data shows that while the sanctioned number is high both in the case of PMAY-U & PMAY-G, the completion rate is not on par, especially in the case of PMAY-U. With only about a year left to achieve the targets set under the ‘Housing for all’ mission, the government must ramp the construction efforts in both schemes.
Featured Image: Construction of Houses under PMAY