Prop­erty talk

Pmay-u Pines For Pri­vate Sec­tor Push

Realty Plus - - Table Of Content -

The ‘Hous­ing for All by 2022’ ini­tia­tive of the cen­tral gov­ern­ment aims to pro­vide af­ford­able pucca houses with un­in­ter­rupted wa­ter fa­cil­ity, sanitation and elec­tric­ity sup­ply to the eco­nom­i­cally weaker sec­tions (EWS). The Min­istry of Hous­ing and Ur­ban Poverty Al­le­vi­a­tion has es­ti­mated a short­age of nearly 20 mil­lion dwelling units for the ur­ban poor. PMAY-UAIMS to ad­dress this by pro­vid­ing cen­tral as­sis­tance to the im­ple­ment­ing agen­cies through states and union ter­ri­to­ries to all el­i­gi­ble fam­i­lies/ ben­e­fi­cia­ries by 2022.

With the Union Bud­get for 2017 pro­vid­ing in­fra­struc­ture sta­tus to af­ford­able hous­ing, more de­vel­op­ers have started shift­ing fo­cus to the seg­­ford­able hous­ing in part­ner­ship has be­come the most pre­ferred PMAY-U in­ter­ven­tion by states, fol­lowed by Ben­e­fi­ciary-led Con­struc­tion which is the ma­jorly adopted in­ter­ven­tion in union ter­ri­to­ries.

Af­ford­able hous­ing in part­ner­ship is im­ple­mented along with pri­vate or pub­lic sec­tor agen­cies. Cen­tral as­sis­tance of Rs 1.5 lakh per EWS house will be re­ceived by projects with at least 250 houses, where 35% houses are el­i­gi­ble to avail of the EWS cat­e­gory ben­e­fit. In ad­di­tion, state gov­ern­ments and ur­ban lo­cal bod­ies will con­trib­ute de­pend­ing on cri­te­ria. On the other hand, un­der Ben­e­fi­ciary-led Con­struc­tion, EWS cat­e­gory house­holds can use the Rs 1.5 lakh grant from the Gov­ern­ment to con­struct or make im­prove­ments to own house.

cur­rent sta­tus

• The Cen­tral Sanc­tion­ing and Mon­i­tor­ing Com­mit­tee (CSMC) has sanc­tioned close to 1.9 mil­lion units for the EWS so far. • In­vest­ment com­mit­ments of Rs 1 lakh crore have been fro zen un­der PMAY-U. • As of May 2017, Mad­hya Pradesh has sanc­tioned max­i­mum in­vest­ments for af­ford­able hous­ing projects, con­tribut­ing 18% to the to­tal in­vest­ment sanc­tioned un­der PMAY-U in the state. • The top five states in terms of sanc­tioned in­vest­ment for af­ford­able hous­ing (Mad­hya Pradesh, Ma­ha­rash­tra, Andhra Pradesh, Gu­jarat and Tamil Nadu) com­mand a 61% share of the over­all in­vest­ments un­der PMAY-U.

Pmay-u is a lu­cra­tive op­por­tu­nity for de­vel­op­ers, with the gov­ern­ment of­fer­ing in­cen­tives like, ad­di­tional FSI, free sale com­po­nent,tdr, and land un­der a host of in­ter­ven­tions.

the Way ahead

Two years into the PMAY-U’S launch, only 0.1 mil­lion units have been con­structed. As most projects sanc­tioned are likely to take 2-3 years to com­plete, only 1.5 mil­lion units will be ready by 2019,com­pared with 20 mil­lion units re­quired. Clearly the gov­ern­ment needs to en­cour­age pri­vate sec­tor par­tic­i­pa­tion by an or­der of mag­ni­tude to achieve its lofty goal.

De­vel­op­ers have caught on to the po­ten­tial of low-cost hous­ing bu­tavail­abil­ity of land for af­ford­able hous­ing re­mains a ma­jor chal­lenge. There­fore, the role of state gov­ern­ments and ur­ban lo­cal bod­ies be­comes im­por­tant to pro­vide land, es­pe­cially in city lim­its, un­der the Slum Re­de­vel­op­ment or Af­ford­able Hous­ing Pro­ject in part­ner­ship mod­els. In fact, the gov­ern­ment has re­cently asked its var­i­ous de­part­ments to iden­tify unutilised land, es­pe­cially in de­vel­oped gov­ern­ment colonies, so as to build a land bank for af­ford­able hous­ing.


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