UP registers poor show on PM housing project target

Dev authorities, UPHDB given time till May 15 to submit action plan

LUCKNOW More than a year after its launch, the Pradhan Mantri Awas Yojana (PMAY) has evoked a poor response from private developers in Uttar Pradesh despite government push and incentives attached to the scheme.

Against a target to build one lakh houses under the affordable sector, the UP Housing and Development Board (UPHDB) and development authorities were asked to ensure construction of 30,000 and 70,000 houses respectively with the help of private developers. But while nine development authorities have submitted detailed project report for building 9,958 houses with builders, the UPDB is yet to open its account.

Not surprising, therefore, principal secretary, housing and town planning department, Nitin Ramesh Gokarn has termed the lack of progress as ‘disappointing’ and asked the authorities to gear up to ensure delivery of the target. “A development authority-wise target to build 1 lakh affordable houses was given vide a government order on September 5, 2017. Through a subsequent order dated October 25, 2017, participation of private developers was also sought to build houses for lower income group and economically weaker sections,” Gokarn, who has taken charge only recently, pointed out during a stock-taking of the scheme.

“So far we have received proposals for construction of 24,266 houses from development authorities under PMAY and 8099 dwelling units for weaker sections,” he said.

The offers to build houses for the weaker section were received from private developers after tenders for the scheme were floated thrice, he said.

“Official laxity apart, there seems to be lack of awareness among private developers about the incentives under PMAY, whose ambit has now been extended to include the middle class (with annual income between Rs 6 lakh and Rs 18 lakh),” said an official.

The development authorities and UPHDB have been given time till May 15 to submit an action plan specifying timelines for meeting the targets.

“The government has awarded infrastructure status to the affordable housing segment and also increased the carpet area. Besides it (government) has announced some tax benefits in the form of GST. But given the existing slump in the real estate sector, a market turnaround would not be possible without access to cheaper financial loan options, availability of land and faster permissions for projects,” says Sandeep Saxena, a chartered accountant and real estate consultant.

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Official laxity apart, there seems to be lack of awareness among private developers about the incentives under PMAY, whose ambit has now been extended to include the middle class

AN OFFICIAL