Understanding PM Awas Yojana

Housing For All Scheme

Introduction

● Pradhan Mantri Awaas Yojana was launched in June 2015 with an aim to provide affordable housing to urban
poor

● “By the time the Nation completes 75 years of its Independence, every family will have a pucca house with
water connection, toilet facilities, 24*7 electricity supply and access”

● Also known as “Housing for All Scheme”

● Proposed to build 2 crore houses for urban poor in urban areas by the year 2022

● Financial assistance of ₹2 trillion (US$30 billion) from Central Government

● Technology Sub-Mission
○ Design & Planning
○ Innovative Technologies & Materials
○ Green Buildings Using Natural Resources and
○ Earthquake and Other Disaster Resistant Technologies and Designs.
Implementation Plan

All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities would
be covered in three phases as follows

Phase I

(April 2015 - March 2017)

To Cover 100 Cities

Phase II

(April 2017 - March 2019)

To Cover Additional 200

Cities Phase III

(April 2019 - March 2022)

To Cover All Other

Remaining Cities
Affordable Housing

● “Affordability” as a concept is very generic and could have different meanings for different people based on
differences in income levels

● Affordable housing refers to any housing that meets some form of affordability criterion

● House Price to Annual Income Ratio - Less than 5.1 (Deepak Parekh Task Force)

Income Level Size of Unit Affordability

EMI to Monthly Income

Economically Weaker Up to 3 Lacs Up to 350 sq.ft. 20 -30 Percent

Section

Lower Income Group 3 to 6 Lacs 350 - 650 sq.ft. 30 - 40 Percent

Middle Income Group 6 to 10 Lacs 650 - 1200 sq.ft. 30 - 40 Percent

Implementation Verticals
Eligibility Criteria - Customers

● Family - A beneficiary family will comprise of husband, wife,

unmarried sons and/or unmarried daughters

● Should not own a pucca house either in his/her name or in the

name of any member of his/her family in any part of India

● EWS: Annual Household Income Up to Rs.3 lakh and House

Sizes up to 323 sq.ft.

● LIG: Annual Household Income Between Rs.3-6 lakhs and

House Sizes up to 645 sq.ft

● The houses constructed/acquired - should be in the name of

the female head of the household or in the joint name of the
male head of the household and his wife
Benefits - Customers

● Central Assistance at the rate of Rs. 1.5 Lakh per EWS house would be available for all EWS houses in
such projects.

● Interest subvention subsidy for EWS and LIG for new house or incremental housing

● The credit linked subsidy will be available for loan amounts upto Rs 6 lakhs and additional loans beyond
Rs. 6 lakhs, if any, will be at non subsidized rate

● The subsidy pay-out on Net Present Value basis would be about Rs.2.3 lakh per house for both the
categories

● Stamp Duty in Maharashtra to Rs.1000

Eligibility Criteria - Developers

● Minimum Size of Houses - Standards Provided in

National Building Code (NBC)

● Housing projects where 35% of the houses are

constructed for Economical Weaker Section

(EWS) category

● A Single Project has at least 250 Houses

● Construction of Houses up to 323/645 sq.ft.

Carpet Area with Basic Civic Infrastructure

Advantage - Developers

● Land - Govt will assist Developers to Provide Land in Urban Area

● FSI Norms Flexibility
● Central assistance per EWS House will help to lower the price of Apartments
● Capital Subsidy to Developers of Rs. 50,000 per home or 25% of the Infrastructure Cost of the Project, whichever is
less
● The National Housing Bank provides Credit Risk Guarantees for Home Loans up to Rs. 5 lacs
● NHB - Project Finance for Affordable Housing Developers and Refinance for Housing Finance Companies
● Slum Rehabilitation Grant - Average Rs. 1 lakh per House - Admissible for All Houses Built for Eligible Slum Units
in Projects
● Single Window Clearance - Maximum 90 days period for Sanctions and Approvals
Role of Financial Institutes

Beneficiaries of EWS and LIG - Interest Subsidy at the Rate of 6.5 % for a tenure of 15 Years or during
tenure of Loan Whichever is Lower

Tata Capital Housing - Home Loan Scheme with 4% Rate

Micro Finance Institutions have expressed interest in funding EWS Dwelling Units upto Rs. 5 Lacs
Challenges

● By 2022, India needs to Develop about 11 Crore Housing Units

● Level of Annual Investments in Housing Sector (Now USD 110 to 120 Billion) to be doubled to USD 250 billion

● These investments need to be complemented with additional investments of about USD1.5 trillion in urban
infrastructure and commercial real estate

● Unlocking Land in the Urban Areas - About 1.7 to 2.0 Lakh Hectare of Land is expected to be required to fulfil
Urban Housing need by 2022

● FSI Constraints - FSI norms varies as per city which puts limitations on developers

● Sensible EMI for purchasing a home would be around 20% of monthly household income – Not more than Rs.
2,000–Rs 5,000 a Month

● Accessibility and Affordability of Homes

● Job Availability in nearby Area

Opportunities

● Affordable Urban Houses, which is 70 per cent of the Total Urban Housing Requirement

● 30 Percent of the Housing Need is concentrated in just Two States - Uttar Pradesh and Maharashtra

● Smart City and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

● Maharashtra State Government to Allot 800 Hectares of Revenue Land - 355 Hectares on the Outskirts
of Mumbai

● Projects are within/near to City Area - Ample of Job Opportunities

Few Projects

● Amolik Heights Affordable Housing at

Faridabad,88 by AMOLIK HOUSING PRIVATE
LIMITED

● Hapur - Pilkhuwa Development Authority (HPDA)

- Anand Vihar Residential

● Chhattisgarh Housing Board - Sejbahar Phase II

● Houses in Bangalore for Bangalore Development

Authority

● Houses in Mysore for Karnataka Slum

Development Board
Summary

● “Housing for All” is one of the Ambitious Initiative By Govt which aims to Provide
Houses for Population falls in Bottom of the Pyramid.

● Customer will get benefits of Lower Interest Rate, Subsidies, Schemes and Basic
Amenities at Affordable Rate

● Developers will have Benefits of Land, Fast Track Single Window Approvals,
Subsidies and FSI Flexibility
Thank You