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Out of ₹2,03,427 crore committed to the Pradhan Mantri Awas Yojana-Urban (PMAY-U), ₹1,18,020 has been released so far to construct houses for eligible families in Indian cities. However, Covid-19-induced lockdowns, disruption in the supply of construction material, and financial constraints slowed down the progress of the government’s ambitious urban housing scheme.
Against the demand of 112.24 lakh houses, the union government has sanctioned 122.69 lakh houses. As per government data, 58.59 lakh houses have been built as of April 25, 2022. The total expenditure on completed and ongoing construction is ₹1,09,206 crore. According to officials, work on 98.02 lakh houses came to a standstill during the lockdowns and their completion will be delayed.
Under PMAY, there is contribution from the Union government, States, urban local body (ULB), and the beneficiary. According to a reply from the Ministry of Housing and Urban Affairs to the Rajya Sabha last month, due to Covid-19 there was a strain on the finances of States and the ability of beneficiaries to contribute their share.
Post-lockdown scene
“On account of successive lockdowns, the construction activities were affected such as disruption in the supply chain of construction materials, State’s ability to mobilise their share, weakening of the financial condition of beneficiaries and non-availability of construction labours due to reverse migration,” the ministry stated.
According to the ministry, construction has resumed after lockdowns were lifted in phases and all efforts have been made to accelerate the pace of construction and ensure completion of the projects.
“There is still uncertainty as Covid-19 cases are still emerging across states. In major cities, not all migrants have returned to work and hence the shortage of construction labourers continues,” a civic official in Maharashtra said. He added that the union government’s schemes were not the top priority of municipal corporations owing to their weak financial positions.
Interest subsidy
Beneficiaries belonging to economically weaker sections (EWS), low-income group (LIG), and middle-income group (MIG) seeking housing loans from banks and housing finance companies are eligible for an interest subsidy of 6.5 per cent, 4 per cent and 3 per cent on loan amounts upto ₹6 lakh, ₹9 lakh and ₹12 lakh, respectively.
The interest subsidy of ₹55,095 crore has been released, which includes ₹35,160 crore for EWS and LIG, and ₹12,935 crore for MIG.
However, experts say that EWS and LIG beneficiaries may not go in for loans now as the fear of more lockdowns looms large.
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