Context
Since 1947, in India, there have been various projects proposed to provide housing to people who are socioeconomically backward. However, none of the projects have been able to provide a solution to the problem. The projects were initially proposed after the Partition for the resettlement of the refugees. Later in the 1980s and 90s, there have been schemes like Indira Awas Yojana (for rural areas), Rajiv Awas Yojna (for urban areas). Subsequently, after BJP came to power the Pradhan Mantri Awas Yojana was launched in 2015. All pre-existing housing schemes are incorporated into this. This scheme has two sections: a) PMAY – Rural and b) PMAY – Urban. The target beneficiaries are supposed to be all economically weaker sections (EWS, LIG , and MIG). The goal was to provide permanent housing to people of all strata of society by 2022.
Objectives
The stated objectives of this project are:
- To consider land as a resource and to arrange for the resettlement of slum dwellers with the participation of private builders
- To provide people of economically weaker sections access to affordable housing via the Credit Linked Subsidy Scheme (CLSS)
- To build affordable housing through the Public Private Partnership (PPP) model
- To help eligible consumers to build their own houses via subsidies
Therefore, a major objective of the government is to facilitate the involvement of the private sector real estate companies in the construction of housing under this scheme. Secondly, one of the key features of this project is the Credit Linked Subsidy Scheme (CLSS). Under this, the consumers can take loans from banks and other financial institutions and the government will subsidize a portion of the interest. That is the government will force economically weaker sections to borrow from banks and other financial institutions, thereby helping and partially subsidizing the growth of capital. In other words, one of the government’s major objectives is to aid the growth of banks and capitalists in the name of providing housing opportunities to people from all walks of life.
Customer Selection
A large part of the economy in a country like India is in the informal sector, where most people (especially poor people) have no regular source of income. The government is struggling to figure out the right method of selection of beneficiaries who are financially backward and hence the scope of corruption has increased. From political leaders to government bureaucrats, everyone has started taking their cut. As a result, customer selection has become politically biased where some people are being enrolled for benefits due to political connections while many eligible customers are being excluded from the list. According to central government statistics, about 65% of landless beneficiaries are yet to be given a land lease. But consumers in rural areas cannot be covered in this project without a land lease. As a result, many eligible customers of this scheme are being deprived of help.
Corruption
The corruption of PMAY is a major topic of public discourse. Many people are being illegally added to the list depriving the rightful recipients. The benefits of PMAY are not reaching the right consumers. In many cases, the subsidy money is going to the pockets of the village panchayat, bureaucrats, or bank officers. Central government statistics say approximately 60% of consumers have changed their bank accounts. This indicates that the money sent directly to the consumers’ bank accounts has not reached them. Due to this competition of corruption, many rightful beneficiaries are left behind. Till December 31, 2022, in West Bengal, 10 lakh 19 thousand names have been enrolled, whereas the government’s target was 11 lakh 36 thousand. From newspaper reports, we have learned that houses built under PMAY have sometimes become party offices of the Trinamool Congress. Corruption in PMAY is an open secret today.
Conclusion
The aggressive growth of the private sector is becoming more obvious every day. So, while the government spending on education and health is gradually decreasing their exemptions and subsidies for corporates are increasing. Most of the government spending in the housing sector is going to the coffers of various banks and financial institutions. And a large chunk of the part that might have come to common people is being eaten up by corruption. On one hand, privative financial institutions are creating fake accounts to embezzle government grants. On the other hand, politicians and bureaucrats are taking their cuts and, in some cases, the entire amount. In this age of privatization and corruption, PMAY has become a big farce.
This article was published in the February 2023 issue of Matribhumi journal – the mouthpiece of
Azad Gano Morcha
Cover photo courtesy – https://gilcogreens.com/blog/pradhan-mantri-awas-yojana-urban-scope-coverage-and-construction-of-homes-under-the-scheme/ [Retrieved On: 11/03/2023]