What’s the news?
- The poor in urban India might stay untouched by the initiatives announced by the Prime Minister on the last day of 2016.
- Effects of the new schemes launched under the Pradhan Mantri Awas Yojana (PMAY) would be felt more in tier-II and tier-III cities. Not many budget or affordable housing projects are in the works in metropolitan cities.
What is PMAY?
- The objective of PMAY is to provide shelter to homeless individuals, especially those who belong to lower income groups.The implementation will be carried out in three phases.
- Under PMAY, the government aims to cover around two million non-slum urban poor households. Hence, the total housing shortage envisaged to be addressed through the new mission is 20 mn.
- The mission is being implemented over 2015-2022, providing central assistance to urban local bodies and other implementing agencies, through states and Union Territories.
What is the major issue?
- Experts agree the affordable housing segment will get a needed boost but not in big cities. The fillip would be visible in rural and semi-urban areas. The affect would not be much visible in cities, as the land prices are higher.
Conclusion:
- There is a feeling that demonetisation, along with developments such as the Real Estate Regulatory Authority and a goods and services tax, will provide impetus to the sector, bringing more transparency and accountability in due course.
- So far, the government’s measures for affordable housing have not met with success.They should in the long term work on things like tax exemption on agricultural income.
Category: Mains | GS – II | Govt. Intervention
Source: Business Standard
