June 11, 2024: The Union Cabinet on June 10, 2024 approved the construction of three crore houses under the Pradhan Mantri Awas Yojana (PMAY). This decision was taken in the first meeting held under the chairmanship of PM Modi.
Modi on social media platform X tweeted,
A boost for ‘Ease of Living’ and dignity for crores of Indians!
The Cabinet has decided to further expand the Pradhan Mantri Awas Yojana and construct 3 crore additional rural and urban houses. This decision underscores the government’s commitment to addressing the housing needs…
— Narendra Modi (@narendramodi) June 10, 2024
The PMAY was implemented from 2015-16, under which the government provides assistance to eligible rural and urban households for the construction of houses with basic amenities.
Under the PMAY in the last 10 years, over 4.21 crore houses have been completed. All PMAY houses include basic amenities like household toilets, LPG connection, electricity connection and functional household tap connection in collaboration with other state and central government schemes.
Note that in her interim Budget speech for 2024-25, finance minister Nirmala Sitharaman, mentioned that despite Covid-related challenges, the government was nearing completion of construction of three crore PMAY houses. The government was taking up a target of constructing two crore PMAY G houses in the next five years to be in line with the housing needs of growing families in India. Also, the government had allocated Rs 80,671 crore for the flagship PMAY scheme.
Housing industry reactions
Niranjan Hiranandani, Chairman, NAREDCO National
The real estate industry applauds the maiden cabinet’s decision to sanction the construction of three crore additional rural and urban houses under the Pradhan Mantri Awaas Yojana (PMAY) scheme. Affordable housing development is a crucial step towards revitalizing the property market. As the real estate sector is the second largest employer in the country, the extension of the PMAY scheme will have a ripple effect on employment and economic growth indices. The construction of urban-rural houses in the backdrop of last-mile connectivity being established under mega infrastructure projects will allow us to explore a multitude of new untapped real estate markets. In addition, the industry emphasises the importance of upskilling labour to bridge the prevailing skill gap index. The government and private sector should align and reinitiate the extensive skill development program to provide better job opportunities for current unemployed workers. This, in turn, will result in improved socioeconomic conditions for all citizens.
Pradeep Aggarwal, founder & chairman, Signature Global (India)
This decision reinforces the government’s commitment to ‘Housing for All’ and introduces a significant enhancement: a higher eligible carpet area under the PMAY-Urban (PMAY-U) scheme, compared to the earlier Credit Linked Subsidy Scheme (CLSS).
By expanding carpet area eligibility, the government is addressing critical challenges faced by potential homebuyers in the affordable and mid-housing segments. This progressive step is expected to increase home ownership opportunities for urban and rural populations, ensuring broader access to housing and promoting socio-economic stability. The new scheme is poised to make a substantial impact on the housing sector, encouraging developers to prioritize affordable housing projects and ultimately boosting the overall housing supply in the country.
Ravi Shankar Singh, managing director, Residential Transaction Services, Colliers India
Prashant Sharma, president, NAREDCO Maharashtra
We welcome the Cabinet’s decision to provide assistance for the construction of three crore additional rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). This initiative is a significant step towards achieving the vision of ‘Housing for All’ and will undoubtedly bolster the real estate sector, particularly in the affordable housing segment. The increased focus on rural and urban housing will not only improve the living standards of millions but also create substantial employment opportunities, thereby contributing to the overall economic growth. We at NAREDCO Maharashtra are committed to supporting this endeavor and look forward to collaborating with the government to ensure the successful implementation of this ambitious project.
Pritam Chivukula, vice president of CREDAI-MCHI and co-founder & director of Tridhaatu Realty
The Union Cabinet’s first decision to provide assistance for the construction of three crore additional rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY) is a progressive step that aligns with our commitment to addressing the housing needs of our nation and bolstering infrastructure development. The emphasis on both rural and urban housing is particularly commendable, ensuring that the benefits of this initiative are widespread and inclusive. This decision will not only enhance the quality of life for countless families but also stimulate economic growth by fostering related industries. We at CREDAI-MCHI are eager to collaborate with the government to achieve these ambitious targets and contribute to the successful implementation of PMAY.
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