Target of 'Housing for All' by 2022

The PMAY was launched in 2015, through which the Government of India had set a target of constructing 50 million new housing units by 2022.

 Target of 'Housing for All' by 2022 - Status update

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• The story: The outbreak of COVID-19 pandemic may impact the implementation of the The Pradhan Mantri Awas Yojna (PMAY) housing for all programme, which has fallen below the scheduled targets. It needs a huge push from the government now. The PMAY was launched in 2015, through which the Government of India had set a target of constructing 50 million new housing units by 2022, of which 30 million units were to be in the rural areas (through PMAY-Rural) and 20 million in the urban areas (through PMAY-Urban).
• Status update: Here it is -

1. Rural - There is a period of 1.5 years to go, against the revised targets, 19.55 million houses have been sanctioned and 14.16 million have been completed through PMAY-Rural till April 2021, so completion of 67% of the revised target and 72% of the sanctioned houses. Further, 9% of the houses have not been sanctioned so far.
2. Urban - While under the PMAY-U, against a revised target of 11.2 million units, almost the entire 11.2 million housing units has been sanctioned and 4.8 million houses have been completed, leading to the completion of only 43% of the near-term target as well as the sanctioned units under the PMAY-U.
3. A huge pick-up in the implementation pace for both, the PMAY-U and the PMAY-R, is required to achieve the Housing for All target by 2022.

• Reality check: The Government had set a scaled down near-term target of 21.4 million under PMAY-R and 11.2 million units under PMAY-U by 2022. In terms of funding -

1. the allocation towards the PMAY-U in the Union Budget was reduced to Rs. 8,000 crore for FY2022, against a revised estimate (RE) of Rs. 21,000 crore for FY2021 and the same remained stagnant when compared to the budget estimate (BE) of Rs. 8,000 for FY2021.
2. The allocation towards the PMAY-R in the Union Budget has remained at Rs. 21,000 crore for FY2022, the same as the revised estimate (RE) and the budget estimate (BE) for FY2021. Though the extra budgetary resources (EBR) for PMAY-R have been increased from Rs. 10,000 crore to Rs. 20,000 crore in BE of FY2022 against Rs. 10,000 crore in FY2021; the EBR for PMAY-U for FY2022 is nil, against Rs. 10,000 crore in BE of FY2021.

• Total spend: The Government has allocated/committed Rs. 2.72 lakh crore and incurred Rs. 2.02 lakh crore (74%) out of the total estimated requirement of Rs. 2.88 lakh crore for the revised targets of PMAY-R, leaving pending commitment/allocation of Rs. 16,000 crore and pending expenditure of Rs. 86,000 crore. It has allocated/committed Rs. 1.81 lakh crore and incurred only Rs. 0.95 lakh crore (53%) out of the total estimated requirement of Rs. 1.81 lakh crore towards the revised targets under the PMAY-U. In aggregate, out of the required Rs. 4.70 lakh crore, Rs. 2.97 lakh crore has been incurred in the last five years but a whopping Rs. 1.71 lakh crore (~37%) of the expenditure would be required to be incurred within the next 1.5 years to complete the construction of the balance units by 2022 to meet the near-term scaled down target.
• Summary: the Cabinet had approved a Rs. 60,000-crore dedicated affordable housing fund – the National Urban Housing Fund - in 2018 to support the PMAY programme implementation. It's mostly used by now, and fresh funding is needed.
  
  

 

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