Housing for all – PMAY, etc.

Delay in govt.’s flagship PMAY-G scheme to invite penalty


From UPSC perspective, the following things are important :

Prelims level: PMAY- Urban and Rural

Mains level: Housing for All

Pulling up the States for the delay in completion of the government’s flagship rural household scheme — Pradhan Mantri Awas Yojana –Gramin (PMAY-G) — the Union Ministry of Rural Development has come up with a set of penalties that the State governments will have to bear for any further delay.

About PMAY-G Scheme

  • In pursuance of the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana was revamped to PMAY-G and approved during March 2016.
  • The main aim of the PMAY-G scheme is to provide pucca house with some of the basic amenities.
  • This scheme is meant for people who do not own a house and people who live in kutcha houses or houses which are severely damaged.
  • At present, the minimum size of the houses to be built under the PMAY-G scheme has been increased to 25 sq. mt. from 20 sq. mt.
  • Under PMAY, the cost of unit assistance is to be shared between Central and State Governments in the ratio 60:40 in plain areas and 90:10 for North Eastern and hilly states.

Subsidies under PMAY – G scheme

There are various subsidies offered under PMAY G. These include:

  • Loans up to Rs. 70,000 from financial institution
  • Interest subsidy of 3%
  • Subsidy for the maximum principal amount is Rs. 2 lakh

Why in news?

  • Opposition-ruled states such as West Bengal, Chhattisgarh and Odisha are the leading four States who are far behind their targets.
  • The initial deadline for the scheme was March 2022, which owing to the COVID-19 pandemic was extended by another two years till March 2024.

What are the penalty provisions?

  • If the sanction of the house is delayed for more than one month from the date of issue of the target, the State government will be penalised.
  • The penal fees are per week ₹10 per house for the first month of delay and ₹20 per house for each subsequent month of delay.
  • Similarly, if the first instalment due to the beneficiary is delayed for more than seven days from the date of sanction, then the State governments will have to pay ₹10 per house per week of delay.


Also read:

Govt. extends PMAY-Urban scheme


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