PMAY a boost to Indian Economy

Image for the representative purpose only.

 By Rohit Sharma

Pradhan Mantri Awas Yojana (PMAY) Urban or Rural with Public-Private Partnership (PPP) model has boosted Real Estate with help government initiative many developers and builder which use to deliver luxury projects now with this they have jumped to the affordable housing market.

In an exclusive interview with Hardeep Singh Puri, Union Minister of State with Independent Charge in the Ministry of Housing and Urban Affairs several facts and figures has been revealed in it. In an email interaction with Rajeev Kumar Jain Additional Director General (M&C) replied on behalf of Singh.

1. PMAY is one of the successful scheme implemented by the government, the scheme “Housing for All 2022” has left with 4 years. So how many homes are been constructed till now under PMAY(R) and PMAY (U)?

Status as on 25.06.2018:

No. of Cities/Towns included in Mission 4320
Estimated Housing Demand 1 crore approx.
No. of houses sanctioned 51 lakhs
No. of houses grounded 28 lakhs approx.
No. of houses completed (incl. other Housing Schemes)  7.6 lakhs  approx.

2. How many people have been enrolled in the scheme and what is the criteria for Credit-Link Subsidy?

The broad parameter of CLSS is given in the table below:

With effect from 01.01.2017

Particulars EWS LIG MIG I MIG II
Household Income (Rs.) Upto 3,00,000/- 3,00,001/- to 6,00,000/- 6,00,001/- to 12,00,000/- 12,00,001/- to 18,00,000/-
Dwelling Unit Carpet Area (Up to) in sq. m 30 60 160 200
Interest Subsidy (% p.a.) 6.5% 4.0% 3.0%
Maximum Loan Tenure 20 Years
Eligible Housing Loan Amount for Interest Subsidy (Rs)*  






Discounted Rate for Net Present Value (NPV) calculation  


Upfront Amount for Subsidy (Rs.) for a 20 Year Loan term 2,67,280/- 2,35,068/- 2,30,156/-
Savings in Monthly EMI (Rs.) Approx. @ Loan Interest of 10% 2,500/- 2,250/- 2,200/-

*Subsidy is restricted to this loan amount and for additional loan beyond this limit, interest is not subsidized.

CLSS Performance as on 25.06.2018:


No. of Beneficiaries      :      160,082

Subsidy Released        :       Rs. 3514.02 crore


No. of Beneficiaries      :      40,133

Subsidy Released        :      Rs. 841.39 crore

CLSS – Total:

No. of Beneficiaries      :      200,215

Subsidy Released        :      Rs. 4355.41 crore

3. How will increase in Carpet Area affect the Metropolitan Cities?

The increase in Carpet Area will result in improved sales of housing as more beneficiaries would qualify for PMAY (U) – CLSS subsidy that will also contribute towards clearing some unsold stock. The enhancement would also improve the construction activity and will assist in moving the housing sector forward. The increased construction activity in the housing sector has a cascading effect on core sectors like cement, steel, machinery and other allied sectors. More construction activity in the urban areas would result in the creation of more jobs for both skilled and unskilled workers. Overall this will be a big boost to the economy.

This revision also augurs well with the Reserve Bank of India’s recent policy to revise the housing loan limits for Priority Sector lending (PSL) eligibility aimed at giving a fillip to the low-cost housing. It has been decided to revise the housing loan limits for PSL eligibility from existing Rs 28 lakh to Rs 35 lakh in metropolitan centres (with population of ten lakh and above), and from existing Rs 20 lakh to Rs 25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rs 45 lakh and Rs 30 lakh, respectively.

4. How can one identify which are the projects under PMAY?

PMAY (U) implementation is done under 4 verticals. The projects under ISSR and AHP display the fact that they are PMAY projects prominently in the project site itself. The houses built under BLC vertical display the PMAY logo prominently in the house on completion. CLSS beneficiaries qualify based on individual eligibility and not on the project basis and hence such projects as a whole are not associated with PMAY specifically.

5. Can an NRI apply for a house under the scheme?

NRIs are eligible for subsidy under the scheme provided they meet all the criteria defined for beneficiaries under the mission guidelines and are also in compliance with other GoI/RBI rules, if any, applicable to NRIs.

6. How can one avail the benefit of PMAY scheme, where to apply any website or office?

A potential beneficiary from Economically Weaker Section (EWS) may approach the concerned Urban Local Body and submit their demand survey form with the details for inclusion in the beneficiary list. For Credit Linked Subsidy Scheme (CLSS) they may also approach Primary Lending Institutions (PLIs) directly as well. The beneficiaries can also apply online on citizen portal of the mission.

Beneficiaries under Low-Income Group (LIG) and Middle-Income Group (MIG) who are eligible for CLSS may approach the PLIs directly.




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