House panel suggests increase in per unit amount for PMAY-G over rising inflation

Context: The detrimental effect of rising inflation on new house construction, a
Parliamentary panel has recommended that the government revise the per unit
assistance to PMAY-Gramin beneficiaries. According to the reports there is an
urgent need to increase the monthly pension under the National Social Assistance
Program (NSAP). The per unit assistance under PMAY-G for plain areas is Rs. 1.2
lakh and for hilly areas is Rs.1.3 lakh. The committee also recommended am
increase in monthly pension under NSAP. The pension is provided to over 3 crore
beneficiaries covered under the Indira Gandhi National Disability Pension
Scheme (IGNDPS), Indira Gandhi National Widow Pension Scheme (IGNWPS) and
Indira Gandhi National Old Age Pension scheme (IGNOAPS).

Key points

·       Overview: The government
announced that additional housing units will be built beyond those planned
under PMAY-G and PMAY-U by December 2024, extending the original target from
March 2022.

·       Pradhan
Mantri Awaas Yojana- Gramin (PMAY-G): Launch - To achieve
the objective of “Housing for All” by 2022, the erstwhile rural housing scheme
Indira Awaas Yojana (IAY) was restructured to Pradhan Mantri Awaas
Yojana-Gramin (PMAY-G) from 1st April 2016, as a centrally sponsored scheme.

Ministry
Involved - Ministry of Rural Development.

Status - States/UTs have
sanctioned 2.85 crore houses to the beneficiaries and 2.22 crore houses have
been completed till March 2023.

Aim - To provide a
pucca house with basic amenities to all rural families, who are homeless or
living in kutcha or dilapidated houses by the end of March 2022.

·       Policy
Related Issues in PMAY: Kitchen - PMAY-G provided kitchens, but many
prefer extra rooms instead, often cooking outside and using kitchen space as
living rooms, which partly explains the limited uptake of PMUY (LPG gas).

Cooking Fuel - Despite
efforts, many PMAY-G households don't use LPG cylinders due to outdoor cooking
habits and the cost of refills, hindering the PMAY and PMUY program
integration.

Toilet Use - 10% of toilets
built with PMAY-G houses are unused. However, it's unclear if this is due to
community habits or poor installation and needs investigation.

Drinking Water - The National
Rural Drinking Water Programme (NRDWP) aims to provide piped water to most
rural homes by 2022, but PMAY-G houses mainly rely on shared water points and
lack proper waste collection, drainage, and street lighting.

Source of
Borrowing - Most PMAY-G beneficiaries take loans from private sources rather than
banks to cover additional house construction costs, despite being aware of bank
loan options, indicating a policy issue with bank loan accessibility.

·       Way
forward: Timely Release of Funds - Some states face delays in receiving
central government funds, with a reported deficit of 200 crores in 2020,
prompting the need for timely release of state contributions and direct benefit
transfers akin to MGNREGA.

More Inclusive - The need of the
hour is to acknowledge the limitations of the existing scheme and to devise an
intervention solely intended to solve the housing problem of the landless rural
population.