The Union Budget 2024 announced that Rs 10 lakh crore will be invested in the flagship Pradhan Mantri Awas Yojana (PMAY) scheme including a central assistance of Rs 2.2 lakh crore over next five years, giving a further boost to the government’s programme to provide affordable housing.
Presenting the her seventh budget, Union Finance Minister Nirmala Sitharaman said that the government will assist 1 core more houses under its PMAY (Urban) scheme.
"Hosuing needs of one crore urban poor and middle class families to be addressed with an investment of Rs 10 lakh crore including central assistance of Rs 2.2 lakh crore over the next five yeras," Sitharaman said in her budget speech for 2024-25.
She also said mentioned about the first Cabinet decision of Modi 3.0 term and said that construction of 3 crore additonal houses will be facilitated under PMAY scheme. Out which 2 crore will come in rural areas under PMAY (Grameen).
In the interim Budget tabled in February, she had allocated Rs 80,671 crore for the PMAY. In 2023-24, the government had parked Rs 79,590 crore in the scheme but it was revised to Rs 54,103 crore in the revised estimates.
The third Union Cabinet led by Narendra Modi, in its first meeting held on June 10 under the chairmanship of the prime minister, had approved government assistance for the construction of three crore houses under the PMAY to meet the requirements arising out of the increase in the number of eligible families.
The PMAY scheme was launched in June 2015, it aims to provide pucca houses with basic amenities to all eligible urban beneficiaries.
According to experts, the PMAY has been a crucial initiative in addressing housing shortage across both urban and rural areas. The scheme offers essential credit-linked subsidies, helping eligible families achieve homeownership and access basic amenities significantly improving their living conditions. In the last 10 years, the scheme has facilitated the completion of 4.21 crore houses.
Sunil Sisodiya, founder of Geetanjali Homestate, a real estate consultancy, said that expansion of the PMAY scheme is a crucial step towards rejuvenating the affordable housing sector, pivotal for sustainable urban development in India.
“This move will empower developers to innovate and meet the burgeoning demand for affordable homes, thereby fostering socio-economic stability and equitable housing solutions nationwide. This extension is timely, aligning with post-pandemic recovery efforts and evolving housing preferences. It also underscores the government's proactive stance towards supporting the real estate sector's resurgence,” he said.
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