Ghaziabad's PMAY Housing Projects Yet to Deliver

10 Jan 2025 CW Team

Ghaziabad’s flagship Pradhan Mantri Awas Yojana (PMAY), aimed at providing affordable housing for economically weaker sections, has completed a decade without delivering a single unit to beneficiaries. Delays have plagued both private developers and government-run projects, leaving allottees in limbo. Under PMAY, the Ghaziabad Development Authority (GDA) was tasked with building 3,550 units in its colonies, while private developers were to construct 6,150 units across various projects. Despite 2,000 units being ready in GDA schemes such as Madhuban Bapudham and Dasna, essential amenities like electricity, water, sewer connections, and approach roads remain incomplete, delaying handovers. A senior GDA official stated, “We’ve sought assistance from various departments for infrastructure, but progress has stalled due to pending state government funding.” Meanwhile, none of the 6,150 units promised by private developers have been delivered. While some builders claim near-completion, others continue to lag behind. The GDA has issued notices to expedite these projects. The Confederation of Real Estate Developers' Associations of India (CREDAI) partly blames the government, citing insufficient initial incentives for builders. Although recent rule relaxations have encouraged participation, challenges persist. The GDA revised the cost of PMAY units in 2021, increasing the price from Rs 400,000 to Rs 600,000, with central and state government subsidies covering Rs 250,000 and Rs 100,000, respectively. Beneficiaries are required to pay the remaining Rs 250,000. Beyond PMAY, group housing developers are mandated to allocate 10% of their flats for economically weaker sections (EWS) and 10% for low-income groups (LIG). However, compliance has been poor, with only 1,717 EWS and 1,255 LIG flats constructed out of a combined target of 9,720 units. CREDAI-NCR secretary Gaurav Gupta highlighted rising land, construction, and labour costs as barriers to affordable housing viability, urging the government to revise the price cap of Rs 4.5 million under affordable housing schemes. GDA’s former town planner pointed out that developers receive incentives, such as additional Floor Area Ratio (FAR) and exemptions for smaller projects, in exchange for a shelter fee. However, CREDAI deemed these benefits “cosmetic,” emphasising the need for more substantial reforms to boost affordable housing delivery. (ET)

Infrastructure Urban

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