Housing for all – PMAY, etc.
Beyond shelter, dweller needs within the four walls
From UPSC perspective, the following things are important :
Mains level: government's efforts in addressing housing challenges
Central Idea:
The article discusses the commendable steps taken by the government in the interim Budget 2024 towards achieving the ‘Housing for All’ initiative, particularly focusing on the construction of affordable houses and addressing environmental concerns. It emphasizes the need for integrating modern technologies and passive design strategies to ensure both affordability and sustainability in housing projects.
Key Highlights:
- Finance Minister Nirmala Sitharaman announced the construction of two crore additional houses over the next five years under the Pradhan Mantri Awas Yojana Gramin (PMAY-G) and introduced a new housing scheme for the middle class.
- The success of the PMAY scheme is acknowledged, with nearly three crore rural and 80 lakh urban affordable houses constructed since 2015.
- The adoption of modern technologies, such as Light House Projects (LHPs) and alternative construction methods like Mivan, is emphasized to reduce construction time, costs, and environmental impact.
- However, there’s a need to address the trade-offs between mass production and quality of life, particularly regarding thermal comfort and environmental sustainability.
- Passive design strategies are suggested as a solution to ensure thermal comfort and reduce greenhouse gas emissions during the operational stage of buildings.
- Initiatives like Eco Niwas Samhita and Smart Ghar III project in Rajkot are cited as examples of integrating passive design elements into affordable housing projects.
- Challenges include multi-stakeholder involvement, lack of awareness among end-users about the benefits of passive designs, and the need for systemic changes to incentivize sustainable practices across the building value chain.
Key Challenges:
- Balancing mass production with quality and sustainability.
- Addressing thermal comfort and environmental concerns in affordable housing projects.
- Overcoming multi-stakeholder involvement and lack of awareness about passive design benefits.
- Incentivizing developers to prioritize sustainability in housing projects.
Main Terms:
- Pradhan Mantri Awas Yojana (PMAY)
- Affordable housing
- Thermal comfort
- Greenhouse gas emissions
- Passive design strategies
- Light House Projects (LHPs)
- Global Housing Technology Challenge (GHTC)
- Eco Niwas Samhita
Important Phrases:
- “Housing for All” initiative
- “Low-carbon infrastructure”
- “Modern technologies in affordable housing”
- “Trade-offs with quality of life”
- “Passive design implementation”
- “Embodied and operational emissions”
- “Environmental consciousness”
- “Sustainable and inclusive future”
Useful quotes:
- “The announcement also prompts us to critically think about the potential trade-offs with quality of life and environmental concerns as a result of the rapid expansion of the housing sector.”
- “This underscores a critical paradox, wherein a technology deemed to offer a low-carbon alternative inadvertently contributes to elevated emissions during the operational stage.”
- “The escalating heat stress worldwide is anticipated to affect various population segments, leading to a substantial increase in the demand for cooling.”
- “However, the challenge lies in their implementation because of the multi-stakeholder nature of the building value chain.”
- “By weaving environmental consciousness into the fabric of housing initiatives, we can ensure that the homes we build not only shelter individuals but are also robust structures that make residents resilient to a warming climate.”
Anecdotes/Useful Statements:
- Example: The Smart Ghar III project in Rajkot demonstrates the integration of passive design strategies into affordable housing, ensuring indoor thermal comfort.
- Fact: Nearly three crore rural and 80 lakh urban affordable houses have been constructed under the PMAY scheme since 2015.
- Data: Construction technologies like Mivan offer higher efficiency and reduce the overall duration and cost of projects.
- Example: The Global Housing Technology Challenge (GHTC) includes Light House Projects (LHPs) across six sites in six states, leveraging modern technology for affordable housing.
- Fact: The lack of tangible benefits perceived by end-users hinders the adoption of passive designs in housing projects.
Critical Analysis:
The article effectively highlights the government’s efforts in addressing housing challenges while also acknowledging the environmental concerns associated with rapid construction. It emphasizes the need for a balanced approach that integrates modern technologies with passive design strategies to ensure both affordability and sustainability in housing projects. However, it also identifies key challenges such as multi-stakeholder involvement and lack of awareness among end-users, indicating the complexity of implementing sustainable practices across the building value chain.
Way Forward:
- Implementing passive design strategies in affordable housing projects.
- Raising awareness among stakeholders about the benefits of sustainable practices.
- Incentivizing developers to prioritize sustainability through policy interventions.
- Strengthening building codes to incorporate environmental considerations.
- Fostering collaboration among stakeholders to drive systemic changes in the building sector.
Overall, the article calls for a holistic approach towards housing development that not only meets the immediate needs of the population but also ensures long-term environmental sustainability.
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Housing for all – PMAY, etc.
SWAMIH investment fund and its affordable housing push
From UPSC perspective, the following things are important :
Prelims level: SWAMIH Fund
Mains level: Not Much
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I has raised Rs 15,530 crore so far.
What is the SWAMIH investment fund?
- The SWAMIH Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.
- The Fund is sponsored by the Ministry of Finance and is managed by SBICAP Ventures Ltd., a State Bank Group company.
- The Fund is considered as the lender of last resort for distressed projects.
Who are eligible for this fund?
It considers-
- First-time developers,
- Established developers with troubled projects,
- Developers with a poor track record of stalled projects,
- Customer complaints and NPA accounts, and even
- Projects where there are litigation issues.
Significance of the funds
- The Fund’s presence in a project often acts as a catalyst for better collections and sales primarily in projects that were delayed for years.
- According to the Finance Ministry, SWAMIH Fund has one of the largest domestic real estate private equity teams focused only on funding and monitoring the completion of stressed housing projects.
How many projects so far have been financed by the Fund?
- SWAMIH has so far provided final approval to about 130 projects with sanctions worth over Rs 12,000 crore.
- The Fund has completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities.
- The Fund has been able to complete construction in 26 projects and generate returns for its investors.
- It has also played a critical role in the growth of many ancillary industries in real estate and infrastructure sector having successfully unlocked liquidity of more than Rs. 35,000 crore.
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Housing for all – PMAY, etc.
In news: Affordable Rental Housing Complexes
From UPSC perspective, the following things are important :
Prelims level: AHRC
Mains level: Housing for All
A Parliamentary panel has asked the government to clarify how many of the 66 proposals received under the Affordable Rental Housing Scheme launched for the urban poor, especially migrant workers, during the COVID-19 pandemic have been approved by their respective local urban bodies.
Affordable Rental Housing Scheme
- AHRC is a sub-scheme under PM Awas Yojana – Urban.
- Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
- The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
- States/UTs will select concessionaire through transparent bidding.
- Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
Beneficiaries of the scheme
- A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
Benefits of AHRCs
- Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
- They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
- ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work.
- Investment under ARHCs is expected to create new job opportunities.
- ARHCs will cut down unnecessary travel, congestion and pollution.
Back2Basics: Pradhan Mantri Awas Yojana (PMAY)
PMAY-Urban
The PMAY- Urban Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:
- Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
- Promotion of Affordable Housing for weaker section through credit linked subsidy
- Affordable Housing in Partnership with Public & Private sectors
- Subsidy for beneficiary-led individual house construction /enhancement.
PMAY-Rural
- In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana – Gramin and approved during March 2016.
- Under the scheme, financial assistance is provided for construction of a pucca house to all houseless and households living in dilapidated houses.
- It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19.
- The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. The cost of houses would be shared between the Centre and States.
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Housing for all – PMAY, etc.
Taking care of Vulnerable Homeless People
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: Addressing the issue of homelessness in India
Context
- In India, the northern states face extreme weather in peak winter and summer. Hundreds of homeless people die in winter due to harsh cold conditions and, in summer, due to intolerable heat.
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Why homelessness needs attention?
- Lack of record: There is an absence of official records enumerating deaths due to homelessness. It undermines the scale of the crisis in the era of statistics and showcases states apathy.
- Extreme poverty: Homelessness is one of the worst forms of marginalisation as most homeless individuals suffer from malnutrition and extreme poverty.
- Poor health condition: Access to healthcare facilities and their affordability is also a hurdle. Exorbitant conditions affect mental health in many cases.
- Vulnerability to violence: Moreover, these conditions also give rise to drug and alcohol consumption. It creates a conducive situation for substance abuse. Such circumstances increase an individual’s vulnerability to violence, especially in the case of women and children.
- Social castigation: Stigmatisation and social marginalisation compound their precarious situation. In a nutshell, homelessness strips a person from all human rights.
Reasons for homelessness
- Extreme poverty,
- Inadequate affordable housing,
- High levels of inequality,
- Discrimination,
- Low wages,
- High rents,
- The soaring cost of living
What are the estimates of homelessness in India?
- The 2011 census estimate: Nearly 17.7 lakhs people as houseless, however, the census fails to capture the entire homeless population.
- Commissioners of Supreme courts: since census are conducted in every 10 years, this data is decadal old. As per the Commissioners of the Supreme Court, 1 percent of the urban population is homeless, making it a population of ~37 lakhs.
- The Ministry of Housing and Urban Affairs: Ministry conducted a third-party survey in 2019 to identify the urban homeless. It estimates that approximately 23.93 lakh people are homeless. Population increase and the COVID-19 pandemic have fueled the rise in the homeless population.
What is the “Shelter for Urban Homeless (SUH)” Scheme about?
- The scheme seeks to provide shelter to the urban poor. SUH is a sub-scheme under Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM). The scheme guidelines mention the following provisions:
- All weather permanent shelters will be open for 24 hours.
- Permanent community centre for at least 100 people for every 1 lakh population.
- Each one should cater to 50-100 persons depending on local conditions.
What are the problems in shelter homes?
- Entry level barrier: Homeless people face entry-level barriers in accessing public shelters due to local issues such as shelter location, entry fees, and identification proof for verification.
- Non-availability of IDs: Most of the homeless are in the informal economy, lacking necessary documentation like voter ids, Aadhar card, etc. It makes them ‘invisible’ in the eyes of the city administration, and their voice remains unheard.
Addressing the issue of homelessness
- Responsibility of ULBs: The responsibility of accessing the homeless population rests with the urban local bodies. Local authorities need to conduct surveys to assess the homeless population.
- Decentralisation of funds: State governments must implement the 74th Constitutional Amendment in its true spirit. Its implementation will empower ULBs, which can then bring all the shelter homes under the ambit of SMCs and train them to manage local issues.
- Ensuring the benefits through ULBs: It can help them to secure benefits and guarantee the convergence of various government schemes, thus also addressing deep-rooted issues like violence and exclusion.
Conclusion
- The aim of providing housing for all will remain a distant dream if the homeless are not covered. Sheltering the homeless is a crucial link in the overall housing continuum. The state governments need to empower municipal bodies to ensure the decentralisation of governance.
Mains Question
Q. Discuss the problem of Homelessness in India? What are the challenges in addressing the homelessness problems and suggest the solution for it.
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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.
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Housing for all – PMAY, etc.
Govt. extends PMAY-Urban scheme
From UPSC perspective, the following things are important :
Prelims level: PMAY-U
Mains level: Urban housing
The Union Cabinet approved an extension to the Pradhan Mantri Awas Yojana-Urban up to December 31, 2024 so that the houses sanctioned under the scheme can be completed.
PMAY-Urban scheme
- The PMAY-U, a flagship Mission of GoI being implemented by Ministry of Housing and Urban Affairs (MoHUA), was launched on 25th June 2015.
- The Mission addresses urban housing shortage among the EWS/LIG and MIG categories including the slum dwellers by ensuring a pucca house to all eligible urban households by the year 2022.
- It adopts a demand-driven approach wherein the Housing shortage is decided based on demand assessment by States/Union Territories.
- State Level Nodal Agencies (SLNAs), Urban Local Bodies (ULBs)/ Implementing Agencies (IAs), Central Nodal Agencies (CNAs) and Primary Lending Institutions (PLIs) are main stakeholders.
Coverage area
The Mission covers the entire urban area consisting of:
- Statutory Towns
- Notified Planning Areas
- Development Authorities
- Special Area Development Authorities
- Industrial Development Authorities or
- Any such authority under State legislation which is entrusted with the functions of urban planning & regulations
Key features of PMAY (U)
- All houses under PMAY (U) have basic amenities like toilet, water supply, electricity and kitchen.
- The Mission promotes women empowerment by providing the ownership in name of female member or in joint name.
- Here, preference is given to differently abled persons, senior citizens, SCs, STs, OBCs, Minority, single women, transgender and other weaker & vulnerable sections of the society.
Categorization within the scheme
- PMAY (U) adopts a cafeteria approach to suit the needs of individuals based on the geographical conditions, topography, economic conditions, availability of land, infrastructure etc.
- The scheme has hence been divided into four verticals as given:
- In-situ Slum Redevelopment (ISSR): Central Assistance of Rs. 1 lakh per house is admissible for all houses built for eligible slum dwellers under the component of ISSR using land as Resource with participation of private developers.
- Credit Linked Subsidy Scheme (CLSS): Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring, new construction or enhancement* of houses are eligible for an interest subsidy of 6.5%, 4% and 3% on loan amount upto Rs. 6 Lakh, Rs. 9 Lakh and Rs. 12 Lakh respectively.
- Affordable Housing in Partnership (AHP): Under AHP, Central Assistance of Rs. 1.5 Lakh per EWS house is provided by the Government of India. An affordable housing project can be a mix of houses for different categories but it will be eligible for Central Assistance, if at least 35% of the houses in the project are for EWS category.
- Beneficiary-led Individual House Construction/ Enhancement (BLC-N/ BLC-E): Central Assistance upto Rs. 1.5 lakh per EWS house is provided to eligible families belonging to EWS categories for individual house construction/ enhancement. The Urban Local Bodies validate the information and building plan submitted by the beneficiary.
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Housing for all – PMAY, etc.
[pib] Swamih Investment Fund
From UPSC perspective, the following things are important :
Prelims level: SWAMIH Investment Fund
Mains level: Not Much
In order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects.
Try this MCQ:
Q.The SWAMIH Fund recently seen in news is related to:
(a) Higher Education (b) MSMEs (c) Housing (d) Highways
SWAMIH Investment Fund
- SWAMIH investment fund is an alternative investment fund which aims to provide last-mile funding to the stressed affordable and middle-income housing projects in the country.
- It is expected to fund the projects which are net-worth positive, including those projects that have been declared as NPAs or are pending proceedings before the National Company Law Tribunal under the IBC.
Why need such funds?
- Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
- On one hand, incremental launches and slow sales have increased unsold inventory in each project.
- While the effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under-construction projects.
- This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.
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Housing for all – PMAY, etc.
[pib] Special Window for Affordable and Mid Income Housing (SWAMIH)
From UPSC perspective, the following things are important :
Prelims level: SWAMIH Fund
Mains level: Housing for all
Union Minister for Finance has informed that so far Rs 8767 crore has been approved for 81 projects under Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I.
Try this MCQ:
Q.The SWAMIH Fund recently seen in news is related to:
(a) Higher Education (b) MSMEs (c) Housing (d) Highways
SWAMIH Fund
- In November 2019, the Finance Minister had cleared a proposal to set up a ‘Special Window’ called SWAMIH in to provide priority debt financing for the completion of stalled housing projects.
- SWAMIH Investment Fund has been formed to complete the construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing / mid-income category.
- The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, and Government of India on behalf of the Government of India.
- The fund is set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run.
Why need such funds?
- Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
- On one hand, incremental launches and slow sales have increased unsold inventory in each project.
- While the effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under-construction projects.
- This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.
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Housing for all – PMAY, etc.
[pib] Affordable Rental Housing Complexes (AHRCs) for Urban Migrants / Poor
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Awas Yojana (PMAY), AHRC
Mains level: Housing for all
The Union Cabinet has given its approval for developing of Affordable Rental Housing Complexes (AHRCs). for urban migrants / poor.
Try this question from CSP 2015:
“Pradhan Mantri Jan-Dhan Yojna’ has been launched for
(a) Providing housing loan to poor people at cheaper interest rates
(b) Promoting women’s Self-Help Groups in backward areas
(c) Promoting financial inclusion in the country
(d) Providing financial help to the marginalized communities
AHRC
- It is a sub-scheme under PM Awas Yojana – Urban.
- Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
- The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
- States/UTs will select concessionaire through transparent bidding.
- Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
Beneficiaries of the scheme
- A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
Benefits of AHRCs
- Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
- They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
- ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work.
- Investment under ARHCs is expected to create new job opportunities.
- ARHCs will cut down unnecessary travel, congestion and pollution.
Back2Basics: Pradhan Mantri Awas Yojana (PMAY)
PMAY-Urban
The PMAY- Urban Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:
- Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
- Promotion of Affordable Housing for weaker section through credit linked subsidy
- Affordable Housing in Partnership with Public & Private sectors
- Subsidy for beneficiary-led individual house construction /enhancement.
PMAY-Rural
- In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana – Gramin and approved during March 2016.
- Under the scheme, financial assistance is provided for construction of a pucca house to all houseless and households living in dilapidated houses.
- It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19.
- The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. The cost of houses would be shared between the Centre and States.
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