PMAY: Due to the indifference of private developers and lack of funds with government departments, the Pradhan Mantri Awas Yojana seems to be dying in Ghaziabad.
It has been 10 years since the Pradhan Mantri Awas Yojana (PMAY) was launched, but not a single flat has been handed over to any beneficiary under this scheme in Ghaziabad. Due to lack of coordination between government departments and private developers and delay in release of funds, the beneficiaries are still waiting to see their dream of home fulfilled. This scheme was launched for the economically weaker section (EWS), but neither the houses built by the government nor the private developers have been completed on time.
The Ghaziabad Development Authority (GDA) was to build 3,550 flats of PM Awas Yojana, while 6,150 flats were to be built by private developers. GDA has prepared 2,000 flats in Madhuban Bapudham, Dasna and other schemes, but the complete development of basic facilities like electricity, water, sewer connection and access road has not been done yet.
Lack of funds
According to a Times of India report, a senior GDA official said, “We have written to PWD, UPPCL, UP Jal Nigam and Nagar Nigam to complete these works, but the work is stuck due to non-release of funds. Till the time these facilities are not completed, flats cannot be given to the beneficiaries.” 856 flats were to be built in Madhuban Bapudham Yojna, 432 in Dasna, 1,200 in Pratap Vihar, 400 in Noor Nagar and the rest in other colonies.
Work of private developers also incomplete
Private developers were to build more than 6,000 flats under PMAY, but not even one of these is fully ready. GDA regularly seeks information from developers on the progress of work. According to GDA, many developers have assured that the work is almost complete, but have not delivered any flats till now.
CREDAI blames government
The Association of Real Estate Developers of India (CREDAI) has blamed the government for the delay. A CREDAI member said, “Initially, very little incentive was given to private developers, due to which they could not show interest in this scheme. Now that the rules have been relaxed, developers are rapidly constructing flats.” At the same time, CREDAI-NCR Secretary Gaurav Gupta said, “Affordable housing is no longer economically viable for developers. Developers are incurring losses due to increase in land prices and construction costs. We have demanded the government to remove the price cap.”
Under PMAY, it is mandatory for group housing developers to build 10% flats for EWS and 10% flats for LIG in their projects. The price of EWS flats has been fixed at around Rs 6 lakh and the price of LIG flats has been fixed at Rs 9 lakh.
Prices of flats increased
In February 2021, the GDA board increased the price of PMAY flats from Rs 4 lakh to Rs 6 lakh. Out of this, Rs 2.5 lakh will be given by the central government and Rs 1 lakh by the state government. The remaining Rs 2.5 lakh will have to be paid by the beneficiary. The fund is released in installments, but due to delay in the projects, the beneficiaries are not able to get the flats.
