Lok Sabha Question No. 2735 (UNSTARRED), answered on 2023-03-16
Subject: Subsidy under PMAY
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Naranbhai Bhikhabhai Kachhadiya

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2735

## TO BE ANSWERED ON MARCH 16, 2023

## SUBSIDY UNDER PMAY

## NO. 2735.   SHRI NARANBHAI KACHHADIYA:

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

- (a) whether it is a fact that thousands of beneficiaries are forced to live in shanties or half-finished houses in the country due to huge  delay  in  subsidy  under  Pradhan  Mantri  Awas  Yojana (PMAY);
- (b) if so, the reasons therefor; and
- (c) the  steps  taken  by  the  Government  to  provide  subsidy  to  the beneficiaries under PMAY on quick and easy process?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI KAUSHAL KISHORE)

- (a) to (c):  Ministry  of  Housing  and  Urban  Affairs  (MoHUA)  is implementing  Pradhan  Mantri  Awas  Yojana  -  Urban  (PMAY-U) since 25.06.2015 to provide pucca house with basic amenities to all  eligible  urban  beneficiaries  across  the  country.  PMAY-U adopts a demand driven approach wherein States/Union Territories  (UTs)  have  been  empowered  to  recommend  the projects  to  MoHUA  for  the  beneficiaries  identified  by  them through  a  demand  survey  based  on  eligibility  criteria.  The scheme is being implemented through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), In-Situ Slum Redevelopment (ISSR) and Credit Linked Subsidy Scheme (CLSS).

Government of India is sanctioning the proposals based on the Detailed Project Reports (DPRs) along with project cost prepared by the implementing agencies of States/UTs.

Government  of  India  is  providing  its  fixed  share  as  Central Assistance of ₹1.0 lakh under ISSR, ₹1.5 lakh for AHP and BLC verticals of PMAY-U. Under CLSS vertical of PMAY-U, an interest subsidy at the rate of 6.5% which amounts up to ₹2.67 lakh per house  is  provided  for  beneficiaries  of  Economically  Weaker Sections  (EWS)  and  Low-Income  Group  (LIG)  category.  The remaining cost of the house as per DPR is shared by States/UTs/Urban Local Bodies/Beneficiaries.

As per the scheme guidelines, Central Assistance under different  verticals  is  released  to  the  States/UTs/Central  Nodal Agencies  (CNAs)  based  on  compliances  submitted  by  them. Further, the disbursement of subsidy (including Central & State components)  to  the  beneficiaries  under  BLC/AHP/ISSR  vertical by  States/UTs/Implementing  agencies    is  done  depending  upon the physical & financial progress of projects/houses. In case of CLSS  vertical,  upfront  interest  subsidy  is  released  to  Primary Lending Institutions (PLIs) by CNAs after due diligence.

CLSS  for  EWS/LIG  was  operational  till  31.03.2022  and  Primary Lending  Institutes  (PLIs)  were  supposed  to  upload  all  eligible claims  by  31.03.2022.  Following  request  received  from  CNAs, the  deadline  for  uploading  the  claims  on  the  CNA  portal  was extended till 30.06.2022 so that no eligible beneficiary is denied interest subsidy. Accordingly, funds have been released to CNAs as per demand during current financial year to liquidate pending claims uploaded on CNA portal under CLSS for EWS/LIG.

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