Why in the News? 

As the current Union government completes two terms, one of its flagship programs was Housing For All (HfA) by 2022, both in urban and rural areas, planned under the PMAY (Pradhan Mantri Awas Yojana) scheme in 2015.

About the PMAY scheme:

The declared objectives of the scheme included rehabilitation of slum dwellers with private developers’ participation; promotion of affordable housing for the weaker sections through Credit Linked Subsidy Schemes (CLSS); affordable housing in partnership with public and private sectors; and subsidy for Beneficiary-led Construction (BLC).

Issues related to the PMAY Scheme:

• PMAY-U faltering Performance: The Pradhan Mantri Awas Yojana – Urban (PMAY-U) initiative has been criticized for its faltering performance. Data from the PMAY dashboard suggests a shortfall of around 40 lakh houses from sanctioned and completed segments.
• ISSR Failure: The in-situ slum redevelopment (ISSR) component, aimed at addressing the largest demand in cities, has been particularly criticized for its failure. Only a small number of houses have been sanctioned under ISSR, falling far short of expectations.
• The large difference between achievement and need: Despite delivering 80 lakh homes, the PMAY-U program has only addressed about 25.15% of the housing shortage. Even if the remaining sanctioned houses are constructed by the end of 2024, it would only address about 37% of the real need, leaving almost 2.4 crore households without adequate housing.
• Not fulfilling the promise as per Spending: The housing program, which received significant budgetary allocation (over $29 billion in the last five years), has not been able to fulfill its promise of “Housing for All.” Despite the focus and financial support, the goal remains unfulfilled.

The reason behind the failure of the PMAY Scheme

• Challenges in Slum Rehabilitation: Despite efforts, some projects aimed at slum rehabilitation have faced issues, such as vertical growth leading to increased utility costs and unsuitable living spaces, as well as difficulties in acquiring land.
• Neglecting social housing needs: City development plans, including PMAY, are often influenced by consultants favoring capital-intensive solutions, potentially neglecting social housing needs and community involvement.
• Less central government’s share: The funding structure of PMAY involves significant contributions from beneficiary households and state governments, with the central government’s share being relatively small.
• Limited Government Role: The architecture of PMAY places limited responsibility on the government, particularly in providing interest subsidies and cost-sharing with beneficiaries, leading to concerns about addressing the needs of the landless and the poor.

Way Forward:

• Reevaluation of Funding Allocation: The central government should consider increasing its share of funding to ensure adequate resources for housing projects. 
• Enhanced Focus on Slum Rehabilitation: The government should review and enhance the implementation of the in-situ slum redevelopment (ISSR) component. This may involve better planning, community engagement, and addressing challenges such as land acquisition and vertical growth.
• Community Participation and Needs Assessment: Incorporating community participation in the planning and implementation of housing projects is crucial 

Mains PYQ 

Q Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional fiancé fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion (UPSC IAS/2016)

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