With the BJP-led NDA government completing three years in office, the Centre has enough public welfare schemes and developmental programmes in the works, not just to give a boost the economy but also to keep the domestic markets insulated from global headwinds.
Among many, the one scheme that stands out is – ‘Housing for All’, one of Modi government’s most ambitious program towards making the nation slum-free and uplifting the standard of living.
With an aim to build 20 million homes, the NDA government launched the Housing for All scheme within five months of assuming office in 2014 and the smart cities initiative within two months.
“We have a dream for 2022. The poorest of poor should have a house of his own. And that house must be equipped with electricity, water and other facilities. There should be hospitals and schools in the neighborhood”, PM Modi had said on the occasion of Ambedkar Jaynati.
In last three years, the government has gone all out in achieving PM Modi’s vision of affordable housing for country’s poor, a majority of whom is homeless and spends days and nights on pavements.
Moreover, the game-changer scheme is gearing up to give much-needed impetus to the economy as it is billed to be India’s next biggest growth driver.
For making its dream of ‘Housing for All’ come true, the Modi govt early this year extended ‘infrastructure status’ to builders who undertake affordable housing projects.
Under the ‘infrastructure status’, a builder is eligible to get state incentives, subsidies, tax benefits and institutional funding for completing their projects.
Housing scheme to be India’s next growth driver
Prime Minister Narendra Modi’s massive push for affordable housing for the billion plus population will unleash a staggering Rs 84 lakh crores in investments over the next seven years, a recent report said.
The report further claims that rising incomes and affordability for the 1.3 billion people of India will trigger a wave of investments in the housing sector, making the current lot of India’s un-housed a potent growth driver of
In its report, CLSA India expects 60 million new homes to be built between 2018 and 2024, creating about 2 million jobs annually and giving a tailwind of as much as 75 basis points to India’s gross domestic product.
The volume of social and affordable housing will rise almost 70 percent to 10.5 million annually by 2024, exceeding the 33 percent increase in the premium market.
Realty and RERA Impact
The much-awaited Real Estate (Regulation and Development) Act, 2016 (RERA) was passed by parliament last year, bringing the real estate sector under its purview.
It is a game-changer in the history of real estate in India as it intends to protect the interests of both home buyers and developers. The Act seeks to bring over 80,000 registered builders in India under its purview to ensure that there is a level-playing field between both stakeholders. It includes stringent clauses to curb the siphoning-off of a particular project’s funds for land acquisition, rampant construction delays and bans the practice of pre-launches, said a news report.
Under RERA, all construction companies will have to use at least 70 percent of sale proceeds to complete residential projects, rather than funnel money to other projects. Developers will also no longer be allowed to start pre-selling apartments before all building approvals are obtained. Those who don’t comply could face as many as three years in jail.
What Cong couldn’t do in 10 years, Modi govt did in 2 years
Recently, the Urban development minister Venkaiah Naidu said that the current regime has done more to provide affordable housing to Indians in two years than what UPA could achieve in 10 years of its rule.
Naidu said that the Modi-led government approved 17.73 lakh affordable houses in 2008 cities and towns in India ever since it came to power, while Manmohan Singh-led government could sanction only 13.82 lakh houses for 1061 cities in the 10 years it was at the centre.
To look at the difference between the two governments, the current ministry has approved investments worth Rs 96,266 crore with an aim to construct more houses for the urban poor, while only Rs 32,713 crore was sanctioned during 2004 to 2014, said to Naidu. Under the PMAY (Urban) scheme, Rs 27,883 crore has been approved to be given to the states and Union Territories as a form of centre’s assistance while only Rs 20,920 crore was provided in UPA’s 10-year rule.
The current government has set 2022 as a target for its ‘Housing for All’ project, while the previous government had a very open-ended approach.
Modi government is close to completing 3 years at the Centre while it is almost 2 years since the announcement of Pradhan Mantri Awas Yojana.
Housing for All 2022 Mission
The Pradhan Mantri Awas Yojana-Housing for All (Urban) mission was started in June 2015 with an aim to provide assistance to the economically weaker sections (EWS) and families of the country from the low income group.
The idea was to given them affordable housing facilities in the urban areas.
Though the scheme is sponsored by the Central government, but is being implemented by all the state governments who have been tasked to identify the beneficiaries of the scheme.