New Scheme to Tackle Urban Housing Shortages for Poor

Prime Minister Narendra Modi has unveiled a novel scheme aimed at
addressing the critical issue of housing shortages for the urban poor. This
announcement reflects the government’s renewed commitment to combat the
problem of inadequate urban housing.

It’s worth noting that until recently, the government had maintained that no new
housing schemes would be introduced after extending the Pradhan Mantri Awas
Yojana-Urban (PMAY-U) until December 2024.

Since the launch of the PMAY-U programme eight years ago, only two-thirds
of the approved houses have been completed or handed over, amounting to
approximately 76.25 lakh houses out of a total of 1.19 crore sanctioned units,
The Central government provided assistance totalling INR 1.49 lakh crore.
Under the proposed scheme, there is a growing consensus to reduce the
financial burden on beneficiaries to a minimum of 40 percent.

To ensure the success of urban housing initiatives, various factors such as high
land costs, floor space index constraints, and complex certification processes
must be addressed. This calls for comprehensive consultations led by the central
government, involving state governments, local authorities, urban planning
bodies, urban sector professionals, financial institutions, and activists.