Interviewtimes 
A 15th of August meme went all buzz on social media showing two bureaucrats confronting a “common man.” The junior officer explains the situation to his superior in filing about the ‘HAR GHAR TIRANGA’ campaign stating, “ Sir,he also has a flag but now he want a house to put up a flag.”
The ‘HAR GHAR TIRANGA’ campaign of the government to print and distribute millions of flags inadvertently sparked a debate about the homeless. There has also been a return of focus to his housing for all program by 2022, which was launched by the Prime Minister in 2015 which is slowly receding. In acknowledging his inability to meet the declared targets, his flagship housing program, Pradhan Mantri Awas Yojana-Urban (PMAY-U), has been extended until 31 December 2024.
As the country celebrates its 76th anniversary, an ambitious plan to provide homes for all originally had a goal of building 50 million homes. Of this, 30 million are in rural areas and 20 million are in urban areas. Housing shortages have always been more acute in urban areas due to the high and prohibitive cost of land in urban areas. That’s why the city’s rehabilitation plan, PMAY-U, is getting more and more attention.
According to a global tracker of housing poverty, estimates that India’s housing shortage is currently around 73.6 million, of which 26.3 million are in urban areas. In addition, more than 93 million people live in urban slums with insufficient access to clean water, sanitation and safe property. In the face of this huge housing problem, Housing-For-All remains a distant dream. Even the downgraded targets are down about 50%.
The PMAY-U, an urban program, was scaled back from 20 million units to 11.2 million units in 2017. According to a government statement on August 10, 12.2 million have been approved, of which 6.2 million have actually been completed. The same is true for financial performance. According to a government memo, central aid approved since 2015 was Rs 230 crore for him, of which Rs 118 crore he was released by 31 March 2022. These figures show a marked lack of will to transform the vast swaths of inner-city slum colonies.
The PMAY program has two main sections. The first is the Credit-linked Subsidy Scheme (CLSS), which provides interest rate subsidies of 6.5%, 4% and 3% for loans up to Rs.60 lakh, Rs.9 lakh and Rs.9 lakh respectively for those who want a mortgage. The second is the In-situ Slum Redevelopment Programme (ISSR), which provides a centralized grant of Rs 1 million per house for all units built for eligible slum dwellers.
Local experience shows that incentives for projects in Tier I cities do not work. Applicants are unable to qualify as high land prices and expensive construction costs push prices above the Rs 120,000 subsidy cap.
As a result, PMAY could no longer integrate into private sector housing projects on the metro. The PMAY units we see are always found on the outskirts of satellite cities with poor transport and commuter services and non-existent civic amenities. This ensures that there are no takers, even for completed units.
The answer to this confusion is for central, state, and local governments to create land pools for affordable mass housing at subsidized rates in locations with access to city thoroughfares. Both private sector and government housing companies can compete for these land pools on speed and quality, if prices are affordable and controlled. Buyers must come from economically weak places (EWS). The development of affordable housing policy has also failed to recognize the urgent need to mass develop accessible rental housing. Millions of job seekers flock to cities, some for short periods of time. There is a shortage of rental housing at the bottom of the pyramid. It’s time to give both the private and public sectors more subsidies and incentives to build rental housing. Finally, we must not forget that in the city two-thirds of his workforce belongs to the informal sector. People don’t even have a proper address, let alone mortgage collateral. In this situation, setting up an Affordable Housing Finance Companies (AHFCs) can develop special loan products and create easy conditions for the poorest. We welcome the extension of the PMAY until December 31st next year. But a more holistic approach to mass affordable housing is needed to prevent housing for all from becoming another mirage.
Currently, India’s housing shortage is currently around 73.6 million homes, of which 26.3 million are in urban areas. In addition, more than 93 million people live in urban slums with insufficient access to clean water, sanitation and safe property. In the face of this huge housing problem, Housing-For-All remains a distant dream. About 50% down even with downgraded target.
