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Housing beneath PMAY trailing targets: Icra

“Thus, a significant pick-up in the implementation pace for both, PMAY-U and PMAY-R, will be required to achieve the Housing for All target by 2022,” Banga stated.

With solely one-and-a-half years to go, the federal government must enhance the tempo of building beneath the Pradhan Mantri Awas Yojna (PMAY) to realize its goal of ‘housing for all’ by 2022, as implementation stays far not on time, score company Icra stated on Monday.

The authorities had set a scaled down, near-term goal of setting up 21.Four million homes beneath PMAY-Rural (PMAY-R) and 11.2 million beneath PMAY-Urban (PMAY-U) by 2022.

But towards the revised targets, the federal government sanctioned 19.55 million homes and 14.16 million have been accomplished beneath PMAY-R till April, implying completion of 67% of the revised goal and 72% of the sanctioned homes. Further, 9% of the homes haven’t been sanctioned up to now, Icra assistant vp and sector head Kapil Banga stated.

While beneath the PMAY-U, towards a revised goal of 11.2 million models, virtually the whole 11.2 million models have been sanctioned and 4.Eight million homes have been accomplished, resulting in completion of solely 43% of the near-term goal in addition to the sanctioned models, he stated.

“Thus, a significant pick-up in the implementation pace for both, PMAY-U and PMAY-R, will be required to achieve the Housing for All target by 2022,” Banga stated.

Under PMAY, the federal government had initially set a goal of setting up 50 million homes by 2022, of which 30 million models could be for rural areas and 20 million in city areas.

Icra stated efficiency can also be more likely to be impacted in FY22 on account of Covid-19.

In phrases of funding, the allocation in direction of PMAY-U within the funds has been lowered to Rs 8,000 crore for FY22, towards a revised estimate (RE) of Rs 21,000 crore for FY21. It has remained stagnant when in comparison with the funds estimate (BE) of Rs 8,000 for FY21. Allocation for PMAY-R remained at Rs 21,000 crore for FY22, the identical because the RE and the BE for FY21.

Though the additional budgetary assets (EBR) for PMAY-R have been elevated from Rs 10,000 crore to Rs 20,000 crore in BE of FY22 as towards Rs 10,000 crore in FY2021, the EBR for PMAY-U for FY22 is nil, towards Rs 10,000 crore in BE of FY21.

So far, the federal government has allotted Rs 2.72 lakh crore and incurred Rs 2.02 lakh crore (74%) of the overall estimated requirement of Rs 2.88 lakh crore for the revised targets of PMAY-R, leaving pending dedication of Rs 16,000 crore and pending expenditure of Rs 86,000 crore. Further, it has allotted Rs 1.81 lakh crore and has incurred solely Rs 0.95 lakh crore (53%) of the overall estimated requirement of Rs 1.81 lakh crore in direction of the revised targets beneath PMAY-U.

In combination, of the required Rs 4.70 lakh crore, Rs 2.97 lakh crore has been incurred within the final 5 years, however a whopping Rs 1.71 lakh crore (round 37%) of the expenditure could be required to be incurred inside the subsequent 1.5 years to finish the development of the stability models by 2022 to satisfy the near-term scaled down goal, Banga stated.

“However, in terms of expenditure trend, the actual consolidated expenditure on PMAY in FY20 was Rs 25,000 crore, the RE for FY21 was Rs 40,500 crore, while the aggregate budgetary allocation for FY22 is only Rs 47,500 crore (including budgeted EBR). Thus a large gap of Rs 1.24 lakh crore is required to be plugged in the next 1.5 years to meet the near-term target,” he stated.

Although the Cabinet accredited a Rs 60,000-crore devoted reasonably priced housing fund — the National Urban Housing Fund — in 2018 to assist the PMAY programme implementation, a substantial portion of this has already been utilised, elevating the necessity for extra allocation, Icra stated.

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