Government to build 2.95 crore houses for rural poor

• The government recently approved “House for All-2022” scheme to construct 2.95 crore houses in rural areas, setting a 2022 deadline. The Centre has already rolled out the urban component of the scheme with a target of two crore houses.
• The government will spend nearly Rs 81,975 crore over construction of the 1 crore houses in the first three years of the Pradhan Mantri Awaas Yojana-Gramin.
• 68,000 crore rupees will be provided by budgetary provisions and rest Rs 21,975 crore will come from borrowing through National Bank for Agriculture and Rural Development (NABARD).

About Pradhan Mantri Awaas Yojana-Gramin:

• This scheme is the rural component of housing for all mission -2022 (or Pradhan mantra Awaas Yojana), which was previously launched by government for urban poor and slum dwellers.
• This scheme will be implemented across the country except Delhi and Chandigarh, and its beneficiaries will be identified through the socio-economic caste census.
• This scheme will be implemented in two phases.
• This scheme will replace Indira Awaas yojana. This new scheme has enhanced the unit assistance to Rs 1,20,000 in plain areas and to Rs 1,30,000 in hilly states/difficult areas.
• Identification of beneficiaries eligible for assistance and their prioritisation to be done using information from Socio Economic and Caste Census (SECC) ensuring total transparency and objectivity.
• The list will be presented to Gram Sabha to identify beneficiaries who have been assisted before or who have become ineligible due to other reasons.
• The cost of unit assistance to be shared between Central and State Governments in the ratio 60:40 in plain areas and 90:10 for North Eastern and hilly states.
• Annual list of beneficiaries will be identified from the total list through participatory process by the Gram Sabha. Gram Sabha will need to justify in writing with reasons for any alteration of priority in the original list.
• Funds will be transferred electronically directly to the account of the beneficiary.
• Inspection and uploading of geo referenced photographs will be done though a mobile app. Beneficiary will also be able to track the progress of his payments through the app.
• The beneficiary is entitled to 90 days of unskilled labour from MGNREGA. This will be ensured through a server linkage between PMAY and MGNREGA.
• Locally appropriate house designs, incorporating features to address the natural calamities common to the region will be made available to beneficiaries.
• To address the potential shortage of masons training for masons will be undertaken as an ongoing process.
• To meet the additional requirement of building materials, manufacture of bricks using cement stabilised earth or fly ash will be taken up under MGNREGA.
• The beneficiary would be facilitated to avail loan of up to Rs.70,000/- for construction of the house which is optional.
• The unit size is to be enhanced from the existing 20 sq.m to up to 25 sq.m including a dedicated area for hygienic cooking.
• Intensive capacity building exercise for all the stake holders.
• Support will be provided at district and block levels for technical facilitation and addressing quality issues in house construction.
• A National Technical Support Agency will be set up to provide technical support to the Centre and States to facilitate construction of the houses targeted and to ensure their quality

Analysis:

• A house is an economic asset and contributes to upward social mobility with salutary impact on health and educational achievement. The tangible and intangible benefits flowing from a permanent house are numerous and invaluable to both the family and the local economy.
• Construction sector generates the second largest employment opportunities in India. The sector has strong backward and forward linkages to over 250 ancillary industries. The development of rural housing creates jobs for those living in the rural community to meet the new demand in the construction-related professions. Purchase of building material, use of services of skilled and unskilled labour, transport services and the consequent flow of financial resources create a positive cycle of economic activities and increases demand in villages.
• Security and comfort of a home provides the launch pad for feeling of enhanced social security, positive self-perception and a powerful fillip to overcoming the difficulties of poverty.

By: Vishal