Indian Economy News

Cabinet approves continuation of Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) beyond March 2021 till March 2024

The Union Cabinet, chaired by Mr. Narendra Modi, Prime Minister of India, approved the Department of Rural Development’s proposal for continuing Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) beyond March 2021. Accordingly, financial assistance will be provided for constructing the remaining 155.75 lakh houses as on 31 March, 2021 under the scheme within total target of 2.95 crore houses. Details of the approval include –

• Continuation of PMAY-G from March 2021 to March 2024 to complete remaining houses within 2.95 crore houses (cumulative target) according to the existing norms.
• Total financial implication for construction of the remaining houses as described above is Rs. 2,17,257 crore [US$ 28.81 billion] (Central Share Rs. 1,25,106 crore [US$ 16.59 billion] and State Share Rs. 73,475 crore [US$ 9.75 billion]) and an additional requirement of Rs. 18,676 crore (US$ 2.48 billion) towards the interest repayment to NABARD.
• In consultation with the Ministry of Finance, decision will be taken regarding the phasing out of EBR and provision of entire scheme funding through Gross Budgetary Support (GBS).
• The Central share of Administrative funds (0.3% out of total Administrative fund of 2%) to each smaller State - Himachal Pradesh, Haryana, Goa, Punjab, Uttarakhand, the NE States except for Assam and Tripura and all UTs except J&K over and above 1.70 % administrative funds released to said States/UTs to release of additional Rs. 45,00,000 (US$ 59,690) administrative funds annually.
• Continue Program Management Unit (PMU) and National Technical Support Agency (NTSA) till FY 2023-24

 Benefits:

• The remaining households within the overall target of 2.95 crore houses under PMAY-G would be provided assistance for construction of Pucca houses with basic amenities to achieve the objective of ‘Housing for All’ in rural areas.

As on 29^th November, 2021, construction of 1.65 crore PMAY-G houses have been completed out of 2.95 crore total target. About 2.02 crore houses almost equal to SECC 2011 database based Permanent Wait List is estimated to be completed by 15^th August, 2022. Thus, the scheme needs to continue till March 2024 to achieve the total target of 2.95 crore houses.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.