Significant hike in central assistance to Prime Minister’s Awas Yojana (Urban housing scheme); 50% increase in housing sanctions under urban housing scheme

Ministry of Housing and Urban Poverty Alleviation        03-May, 2016 19:04 IST

The central government asserted that there is no discrimination in sanctioning housing projects for the benefit of urban poor under the Prime Minister's Awas Yojana (Urban). Minister of Housing & Urban Poverty Alleviation Shri M.Venkaiah Naidu during his reply to the discussion in the Lok Sabha today on the Demands for Grants for 2016-17 of the Ministry of HUPA, ruling out any discrimination against some states stated that States have been empowered to appraise and approve such projects and the centre only does broad scrutiny.

In support of his assertion in this regard, Shri Venakiah Naidu informed the House of state-wise proposals received under PMAY(Urban) which were approved by his Ministry as it is. He said "If some states do proper home work, prepare and approve projects at the level of Chief Secretary, my Ministry can't put them on hold as there is a huge target for construction of houses for urban poor. Andhra Pradesh and Telangana fell in this category".

Referring to an observation made by a Member of Karnataka, Shri Naidu informed that the State Government sent proposals for 16,522 houses only and they were approved in toto.

Agreeing to the suggestions of Members of the House for more allocation of funds for the Housing Mission, Shri Naidu said depending on the proposals received from States, Finance Ministry would be approached for more funds from time to time.

Speaking for the commitment of the Government to ensure Housing for all the urban poor by the year 2022, Shri Naidu informed the House that as against 13,90,349 houses sanctioned over 10 years under JNNURM and Rajiv Awas Yojana, the Government has already sanctioned 6,83,724 houses in the last few months which is more than 50% of total sanctions in the past. He also informed that the Central Assistance under PMAY (Urban) has been increased from Rs.75,000 per house under Affordable Housing in Partnership component in the past to Rs.1.50 lakh per house now. Interest subsidy on housing loans for the urban poor has also been increased from 5.00% to 6.50% now.

The Minister said based on JNNURM experience, measures like sanctioning projects only if land is available have been taken to ensure proper implementation of housing projects.

Most of the 18 Members who participated in the discussion referred to availability of land as the main challenge for the success of the housing mission besides seeking more allocation for the housing mission.

Shri Naidu informed the House that under Deen Dayal Antyodaya Yojana-NULM, 4,00,514 urban poor were imparted skill training during the last two years besides formation of 1,00,431 self-Help Groups of which 89,752 were assisted with loans, 85,502 were assisted to set up individual and group enterprises for self-employment and 770 shelters were sanctioned for homeless.

The Demands for Grants for 2016-17 of the Ministry of HUPA were passed by Voice Vote.

Referring to the Real Estate (Regulation and Development) Act,2016 coming into force from the first of this month, Shri Naidu said that model Rules under the Act will soon be announced by his Ministry. He warned of strict action against malpractices and cheating of buyers in the context of several complaints coming from different places.