The parliamentary standing committee on housing and urban affairs has cited several gaps in the government’s flagship urban housing scheme - Pradhan Mantri Awas Yojana (Urban) - and has suggested that the share of central government’s financial support should not be fixed across the country and must vary as per local factors.
In its report presented in the Lok Sabha, the committee chaired by member of Parliament Rajiv Ranjan Singh alias Lalan Singh, noted that the cost of a house for the economically weaker section (EWS) constructed under the scheme stands around Rs 6.5 lakh on an average, which is shared by central government, state government, urban local bodies (ULBs) and beneficiaries. The estimated average cost of an EWS house under PMAY-U in metropolitan city, non-metropolitan city, hilly terrain and North-Eastern states comes to Rs 13.34 lakh, Rs 10.34 lakh, Rs 8.98 lakh and Rs 8.55 lakh, respectively.
While, states share may vary and several states contribute neglible amount, Centre’s share is fixed. For In-situ slum redevelopment (ISSR), Beneficiary Led Construction (BLC), Affordable Housing Project (AHP) and Credit Linked Subsidy Scheme (CLSS), central assistance is fixed at Rs 1 lakh, Rs 1.5 lakh, Rs 1.5 lakh and 2.31 lakh respectively.
The committee have observed that due to less/nil state assistance and fixed central assistance, beneficiary contribution rises and thereby making EWS houses non-affordable among the targeted group it said. If, after completion, a second phase of the PMAY(U) Mission is contemplated then the Ministry may do away with uniform and fixed central assistance across country. Central assistance should vary depending upon the cost of construction which in turns depends upon the topography and other factors.
The report further noted that the ministry had not conducted any independent urban housing need assessment study. “The committee feels that being a demand-driven scheme, there are chances that some homeless people who did not fulfil the eligibility conditions for the scheme or due to other impediments like maximum contribution from individuals, requirement of land etc, could not avail the benefit,” it said. The panel was of the view that the central assistance should vary as several states have resource crunch to fill the gap.
The committee has recommend that the ministry could conduct an impact assessment study of the scheme to find out the ground realities, its benefits, gaps and shortcomings. The ministry, may thereafter, explore the feasibility of either extending the existing scheme with modifications based on impact assessment study or to formulate another such scheme to benefit the urban poor at large so as to achieve the Government of India’s objective of ‘Housing for All’.
