PMAY-G Target: The target of Pradhan Mantri Awas Yojana-Gramin (PMAY-G) has been increased by two crore houses for the next five years, a ~68 per cent addition to the current target of about three crore houses, Crisil’s post-budget report stated. “A new housing scheme will be launched for eligible middle-class households to buy or build their own houses Allocations to PMAY,” the Crisil said in its post-budget report. 

Pradhan Mantri Awaas Yojana

PMAY was introduced in 2015 to provide affordable housing for all by the end of 2022. Owing to the delay in completion, the timeline was revised to fiscals 2024 and 2025 for PMAY-G and PMAY-Urban (U), respectively. 

According to Crisil, the announcement to bring two crore additional houses under the ambit of PMAY-G over the next five years is a positive. 

For one, it will reduce the housing shortage in rural areas. The incremental target will support cement and building construction segments, too, as it will lead to incremental cement demand of at least 15 MTPA. 

“It will also support other allied building and construction activities. Execution under the scheme has been encouraging so far,” the report said.  

Of the targeted 2.95 crore houses, 2.55 crore have been completed as of January 2024, with as much as 70 per cent of these having women as either sole or joint owners.

While PMAY focussed on affordable housing, thereby catering to the low-income group, the announcement of a new housing scheme for eligible middle-class households who live in rented houses, slums, chawls and other unauthorised colonies would benefit that section of the population 

The government’s continued focus on housing is expected to provide an impetus to the real estate sector as well as its stakeholders, such as developers, engineering, procurement and construction contractors, and allied industries such as steel, cement, etc