Around Rs 5 lakh crore will be invested to build more than 81 lakh houses under the Pradhan Mantri Awas Yojana (Urban), Housing and Urban Affairs Minister Hardeep Puri said.
He added that the handover of the one crore houses sanctioned under the scheme would be completed by December 2020. The government has set a target of one crore houses in urban areas across the country over a period of seven years from 2015 to 2022.
Puri said, “against a target completion date of 2022, I am more or less confident that we can have all the sanctioning done by the first quarter of 2020 and more or less completed by end of 2020.”
He was speaking at the fourth anniversary of the launch of the three urban schemes – PMAY (U), AMRUT and the Smart Cities Mission, on June 25.
“We have sanctioned 81 lakh houses at an investment of Rs 4.83 lakh crore under PMAY (U). Construction has begun for 48 lakh houses for which a commitment of Rs 1.26 lakh crore has been made. As many as 26 lakh houses have been completed so far under the scheme for which funds worth Rs 52,113 crore have been released,” he stated.
The total investment under PMAY(U), AMRUT and the SCM is about Rs 8 lakh crore, Puri added.
Under the Credit-Linked Subsidy Scheme (CLSS), a subsidy of Rs 14,179 crore was provided for 6.32 lakh beneficiaries. Of this Rs 4038 crore was provided under the Middle Income Group (MIG) category to 1.91 lakh beneficiaries, he said.
“During the 10 years of UPA, a total of Rs 1.57 lakh crore investment was made in the urban sector and under Prime Minister Narendra Modi, this has increased to Rs 10.31 lakh crore,” he said.
Under the scheme, first-time homebuyers with an income of up to 18 lakh per annum are funded. Carpet area for these houses was increased to 200 sq m. There were more than 6.32 lakh beneficiaries between 2005-19.
The Modi government launched The Housing for All by 2022 initiative in 2014, under which affordable housing was accorded infrastructure status to ensure that developers in the segment had access to cheaper loans.
CLSS for MIG was announced on December 31, 2016, and extended twice till March 2019. In December 2018-end, the government extended the interest subsidy scheme till March 2020 for first time urban homebuyers with annual income between Rs 6 lakh and Rs 18 lakh.
The MIG I category is for individuals with an annual income of Rs 6-12 lakh, with an interest subsidy of 4 percent provided on loan of up to Rs 9 lakh. The MIG II category is for individuals with an annual income of Rs 12-18 lakh, with an interest subsidy of 3 percent provided on loan of up to Rs 12 lakh. The benefits are usually up to Rs 2.67 lakh on home loans.
Shortage of land is the biggest challenge the scheme is faced with in cities where development of affordable houses is a dire need. Added to this, the cost of land within the city limits accounts for 30-50 percent of the project cost and RBI regulations do not allow banks to fund the purchase of land.
Securing finance for eligible buyers from banks and housing finance agencies is also an uphill task. As the scheme is targetted at informal sector workers from economically weaker and low-income households, documentation poses a challenge.
Besides, delinquencies on repayment of loans taken for the purchase of affordable houses rose. If the trend persists lenders could be deterred from sanctioning fresh loans. The RBI has also cautioned against loan sanctions for affordable houses.
Housing and urban affairs secretary Durga Shanker Mishra said the Centre has planned a common online platform for the Real Estate Regulatory Authority (RERA) of all states and union territories.
“This will provide an opportunity to homebuyers, builders and authorities to exchange views,” he told reporters.
He also said that as per the norms of PMAY (U), homebuyers will not be able to avail CLSS under the mission if real estate project is not registered under RERA.
As far as the Smart Cities Mission is concerned, as many as 16 Integrated Control and Command Centres were operationalised. So far, 100 Special Purpose Vehicles were formed, 100 City Level Advisory Forums constituted, 100 Project Management Consultants appointed, and 5,151 projects worth Rs.2.05 lakh crore sanctioned.
Mishra told reporters that as many as 50 ICCCs are expected to be ready by 2019-end and 70 are likely to be in place by the next anniversary.