Two years after its launch, the Prime Minister Awas Yojna Urban (PMAY-U) may be off to a slow start, but the scheme has already employed close to 1.7 crore people so far, says a study.
According to the study titled ‘Impact of Investments in the Housing Sector on GDP and Employment in the Indian Economy’ conducted by the National Council of Applied Economic Research, for every Rs 1 lakh invested in the housing sector, 2.69 new jobs (2.65 informal and 0.4 formal) are created in the economy. With induced effect, the number of jobs would be 4.06 (3.95 informal and 0.11 formal).
Under PMAY-U, a total investment of Rs 1,10,753 crore involving about 21 lakh dwelling units has been approved by the government so far. On this basis, the total employment generation of 4.5 crore with induced effect is envisaged at the national level.
Currently, out of the total dwelling units approved, about 8 lakh dwelling units are in various stages of completion/construction with an estimated investment of Rs 42,160 crore. Hence, employment of total 1.71 crore must have already been generated on this account, says the study.
“Completion and construction of houses are issues which have a 18-36 months time frame because constructions are huge in nature. Therefore, completion comes about gradually whereas sanctions are much faster as this is the initial period. Construction picks up pace from the second or third year, which means from now on, construction will gather momentum,” Amrit Abhijat, joint secretary and mission director (housing for all) at the ministry of housing and urban poverty alleviation, told FE.
The government has set an ambitious target to construct as many as 12 lakh houses under the PMAY-U in 2017-18, although only 1.49 lakh houses were built under the scheme in 2016-17. The Centre has targeted construction of 26 lakh houses in 2018-19, 26 lakh in 2019-20, 30 lakh in 2020-21 and 29.80 lakh in 2021-22.
Abhijat said the main challenge the ministry is facing is the availability of land. Earlier, housing and urban poverty alleviation minister Venkaiah Naidu had also pointed out that availability of land was an issue for Pradhan Mantri Awas Yojana.
Launched on June 25, 2015, the aim of PMAY is to add ress the gap in housing demand and supply in urban areas in respect to economically weaker sections, low and middle-income groups and meet the target of ‘Housing for All’ by 2022.
The Central assistance approved for 21 lakh dwelling units is around 32,800 crore, of which around 10,000 crore has been released so far,
-By Surbhi Prasad