Subsidy under Pradhan Mantri Awas Yojana

NO. 2735. SHRI NARANBHAI KACHHADIYA

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

(a) whether it is a fact that thousands of beneficiaries are forced to live in shanties or half-finished houses in the country due to huge delay in subsidy under Pradhan Mantri Awas Yojana (PMAY);

(b) if so, the reasons therefor; and

(c) the steps taken by the Government to provide subsidy to the beneficiaries under PMAY on quick and easy process?

(a) to (c): Ministry of Housing and Urban Affairs (MoHUA) is implementing Pradhan Mantri Awas Yojana – Urban (PMAY-U) since 25.06.2015 to provide pucca house with basic amenities to all eligible urban beneficiaries across the country. PMAY-U adopts a demand driven approach wherein States/Union Territories (UTs) have been empowered to recommend the projects to MoHUA for the beneficiaries identified by them through a demand survey based on eligibility criteria. The scheme is being implemented through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), In-Situ Slum Redevelopment (ISSR) and Credit Linked Subsidy Scheme (CLSS).

Government of India is sanctioning the proposals based on the Detailed Project Reports (DPRs) along with project  cost prepared by the implementing agencies of States/UTs.

Government of India is providing its fixed share as Central Assistance of ₹1.0 lakh under ISSR, ₹1.5 lakh for AHP and BLC verticals of PMAY-U. Under CLSS vertical of PMAY-U, an interest subsidy at the rate of 6.5% which amounts up to ₹2.67 lakh per house is provided for beneficiaries of Economically Weaker Sections (EWS) and Low-Income Group (LIG) category. The remaining cost of the house as per DPR is shared by States/UTs/Urban Local Bodies/Beneficiaries.

As per the scheme guidelines, Central  Assistance  under different verticals is released to the States/UTs/Central Nodal Agencies (CNAs) based on compliances submitted by them. Further, the disbursement of subsidy (including Central & State components) to the beneficiaries under BLC/AHP/ISSR vertical by States/UTs/Implementing agencies is done depending upon the physical & financial progress of projects/houses. In case of CLSS vertical, upfront interest subsidy is released to Primary Lending Institutions (PLIs) by CNAs after due diligence.

CLSS for EWS/LIG was operational till 31.03.2022 and Primary Lending Institutes (PLIs) were supposed to upload all eligible claims by 31.03.2022. Following request received from CNAs, the deadline for uploading the claims on the CNA portal was extended till 30.06.2022 so that no eligible beneficiary is denied interest subsidy. Accordingly, funds have been released to CNAs as per demand during current financial year to liquidate pending claims uploaded on CNA portal under CLSS for EWS/LIG.

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