New Delhi: The Modi 3.0 government, in a move to bolster the housing sector, has proposed a substantial budgetary allocation of Rs 10 lakh crore under the Pradhan Mantri Awas Yojana (PMAY), with a focus on housing for poor and middle-class families in urban areas. This initiative includes central assistance of Rs 2.2 lakh crore over the next five years.
The revamped PMAY 2.0 is expected to benefit one crore poor and middle-class families in urban areas. Additionally, Finance Minister Nirmala Sitharaman has introduced an interest subsidy to facilitate affordable housing loans. The government also plans to expand the PMAY by including provisions for an additional three crore houses under the scheme.
“Three crore additional houses under the Pradhan Mantri Awas Yojana in rural and urban areas have been announced, with the necessary allocations being made,” Sitharaman said.
The Ministry of Housing and Urban Affairs (MoHUA) has been allocated Rs 82,576.57 crore for 2024-2025, compared to the Rs 76,431.60 crore budget estimate for 2023-2024, marking an increase of 8.03 percent.
“Housing for all continues to remain a pivotal focus with the announcement of PMAY 2.0, covering the housing needs of 1 crore urban poor and middle-class families with an investment of ₹10 lakh crore,” said Neeraj Bansal, partner and head at KPMG India, a professional services network.
“Overall, the budget sends a message of strong, inclusive, and sustainable economic growth, rightly placing skilling, self-reliance, and innovation as the pillars of development,” he added.
Launched in June 2015, the PMAY scheme aims to provide pucca houses with basic amenities to all eligible beneficiaries in urban areas. In the interim budget presented in February, the expenditure estimate under the scheme was pegged at Rs 80,670.75 crore, later revised to Rs 84,670.75 crore in the full budget.
Of the total estimated expenditure under the Centrally Sponsored Scheme (CSS), Rs 30,170.61 crore has been allocated to PMAY-Urban and Rs 54,500.14 crore to PMAY-Rural.
The government has also proposed policies and regulations to ensure efficient and transparent rental housing markets with enhanced availability. To further ease the housing market, Sitharaman urged states to moderate stamp duties, especially in cities with currently high rates. Additional reductions in duties for properties purchased by women will also be promoted.
Boost to rural habitation
In her budget speech, Sitharaman also announced increased connectivity to rural habitations to increase rural settlements in Phase 4 of the Pradhan Mantri Grameen Sadak Yojana (PMGSY). “Phase 4 will be launched to provide all-weather connectivity to 25,000 rural habitations which have become eligible in view of their population increase.”
Currently, PMGSY aims to provide connectivity to eligible unconnected habitations in rural areas with a population of 500 in the plains, and 250 in hilly areas, desert areas, tribal areas, and certain tribal and backward districts.
To boost workforce participation and development, Sitharaman suggested the introduction of rental housing with dormitory-style accommodation for industrial workers, aiding industrial participation and growth.
(Edited by Radifah Kabir)
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