Pradhan Mantri Awas Yojana – The Central Government of India led by the Hon’ble Prime Minister Shri Narendra Modi has taken a decision of creating a National Urban Housing Fund of Rs. 60,000 crore under its ambitious housing scheme named ‘Pradhan Mantri Awas Yojana (Urban)’. The government will utilize this fund for “Housing for All” Programme i.e. PM Awas Yojana to construct 1.2 crore affordable housing units under the Urban Housing Scheme by the Financial Year 2022.
The Central Government will utilize this fund under the Building Materials and Technology Promotion Council (BMTCP). Let me inform you that, the BMTCP is an autonomous body under the Ministry of Housing and Urban Affairs (MoHUA). The main motive behind this decision is to mainstream several new construction technologies.
The Government will take these funds from the non-budgetary sources and tap them into existing government authorities susch as Housing and Urban Development Corp. (HUDCO).
Urban Housing Scheme – Extra Funds Under PMAY
The government has given this proposal for the creation of such funds in the Union Budget 2018-19. Through the utilization of these funds, the central government has to build a total number of 37 lakh (3.7 million) housing units in urban areas and 51 lakh (5.1 million) housing units in rural areas. Besides this, these housing units have been approved by the central government under the PM Awas Yojana (Urban).
Apart from this, the central government will also provide an additional budgetary support in order to finance the housing projects under Pradhan Mantri Awas Yojana (PMAY) in the financial Year 2018. Besides this, the PM Awas Yojana Urban targets about 4,300 cities and towns.
Besides this, the central government has also sanctioned a total amount of Rs. 6,505 crore for the urban housing scheme in its budget which was insufficient for construction of proposed number of housing units. According to the reports, the Urban Affairs Ministry allocates 2-3 lakh housing units per month on the basis of proposals from states and UTs.
Additional Budget Under PM Awas Yojana
These new funds will hike the required funds according to the need for next 4 years. The government will also sanction a total amount of Rs. 1.7 lakh crore. Besides this, out of the total 1.2 crores (12 million) houses, the government has already completed 5 lakh houses and other 17 lakh houses have been approved.
The Central Government is also providing an interest subsidy for housing loans under the Pradhan Mantri Home Loan Schemes.