Central Scheme to help Govt to Boost Affordable Housing under PM Awas Yojana

Pradhan Mantri Awas Yojana is an ambitious scheme launched by Indian Government. Many states are promoting the Public Private Partnership (PPP) model to boost affordable housing under the Pradhan Mantri Awas Yojana (PMAY). Maharashtra may also soon join the list of states. This model will involve private builders entering into a partnership with the government to construct affordable housing.

Following the guidelines of the Union Government, the state may be set to boost the affordable housing segment through the model.

States such as Rajasthan, Madhya Pradesh, Gujarat, Orissa and others already have the model in place. Senior officials from the housing department informed that this will definitely give the necessary impetus to the sector which will see many private players making their entry into this segment.

Officials from the housing department said that the guidelines were to establish clarity of roles of the government and private players. A senior official from the state housing department said that if it is a PPP model, there should be specific guidelines under the PMAY project. If it is spelled out clearly then private builders will come forward to participate in the projects. They would be clear on the benefits and the government would be clear about the title post completion of the project.

Read More: Latest Updates of PM Awas Yojana

The ‘housing for all’ initiative, formulated under the PMAY is to be implemented in 51 cities in the state. As part of the initiative, the government has charted out four approaches for providing low-cost housing – slum redevelopment on the existing plot, an interest subsidy scheme, creation of housing stock on a public-private participation model and beneficiary-led individual houses.

Recently, minister for housing and urban poverty alleviation Venkaiah Naidu had stated that there was a poor response from private builders for the affordable housing schemes in almost all states. The government had granted infrastructure status to the segment in the Union budget 2017.

Builder Sachin Kulkarni said that the model is not yet applicable in the state. He said that since the state is yet to declare a dedicated affordable housing policy, the statement does not hold in the state. On the other hand, the state has now started allocating land and funds for affordable housing in cities. These projects will be executed through MHADA or local governing bodies.

He said that they have been observing the PPP models of other states and as members of CREDAI they have been participating in some projects and have made presentations. Besides this, he shared that I have also been a part of the drafting of the state policy for affordable housing where we stressed on the PPP model. It’s in the ambit of the state and local government to implement the policy as well as the PPP model.

Officials from the housing department said that the project was delayed due to the election code of conduct. Officials stated that tThe rules should come through next week and it would spell out the guidelines.

Another industry expert said that the market is down and if some announcements are made it can help the consumer as well as the developer. He said that the private builders will get into such projects if they are suitably compensated. In cases where the land is provided by the government, the model will be more successful.

News Source: http://timesofindia.indiatimes.com/city/pune/central-scheme-to-help-govt-boost-affordable-housing/articleshow/57484308.cms?from=mdr

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