CHAPTER 1

INTRODUCTION

A state is a political structure , and institution within a given society. It’s necessity arises because of
the need of better opportunities for individual and social development. In democratic and welfare
states , the ultimate power is vested in the public. The state makes a society more united , meaningful
and powerful. It imparts a strong sense of nationality , patriotism and togetherness. Welfare of the
citizens is the essence of a state. It is the duty of a welfare state to provide security, equality before
law and of opportunities, a decent standard of living etc. to all its citizens without any discrimination.
Freedom from want and fear are the two basic pillars on which a welfare state stands.

The major goals of a welfare state are economic balance, social and political justice, economic growth,
better standards of living and safeguard of certain basic rights and freedoms. Thus the concept of a
welfare state is very wide and inclusive and envisages an order in which all have an access to basic
needs of life and a decent and honourable living. It implies social, economical, physical, mental and
spiritual welfare of the people to the maximum possible extent in a given situation and society. Social
welfare and well-being is the essence of the Indian Constitution. The responsibility for implementation
of various welfare schemes is being shared between Centre and the State Government. The Centre is
responsible for formulating welfare policies and programmes besides coordinating, guiding and
promoting implementation of welfare services in the States. Many schemes are being implemented to
secure the welfare of scheduled tribes and scheduled castes, minorities, backward classes and other
weaker sections of the society like women, children and disabled people.

There are various social welfare schemes of Government of India which are undertaken for the welfare
of the people. They are –

1) Ministry of Urban Development and Poverty Alleviation.

2) Ministry of Labour
3) National Food Security Act.
4) Jai Jeevan Mission
5) Mahatma Gandhi Rural Employment Guarantee Scheme (MGREGS)
6) National Health Mission
7) Pradhan Mantri Kissan Samman Nidhi .
1.1 Pradhan Mantri Awas Yojana (PMAY) : Concept and Meaning
The Pradhan Mantri Awas Yojana (PMAY-G) is an initiative by government of India which aims to bridge
the housing deficit in rural areas of India, while contributing to the mission of Housing for All. As of
date, over 50% of the target set by the Ministry of Rural Development (MoRD) has been met, with 2.92
crore houses allocated to states/UTs and 2.10 crore houses completed as on December 7,2022. Units
under the PMAY-G are meant for those who cannot afford a property on their own and are living in
kutcha houses, with little and or no access to basic amenities. The PMAY-G subsidy interest subsidy for
beneficiaries is 3% with the maximum principal amount being Rs 2 lakhs and the maximum PMAY-G
subsidy one can avail is Rs 38,359 on the EMI. PMAY-G 2020-2021 beneficiaries can get loans up to Rs
70,000 from financial organisation.The continuation of scheme till March, 2024 ensures that the
remaining 155.75 lakh households within overall Target of 2.95 crore houses under PMAY-G would be
provided assistance for construction of pucca houses with basic amenities to achieve the objective of
‘ Housing for All ‘ in rural areas.
1.2 Salient Features of PMAY-G
Target Group

Indira Awas Yojana renamed as Pradhan Mantri Awas Yojana is essentially a public housing scheme
for the houseless poor families and those living in kutcha houses with a component for providing
house sites to the landless poor as well. The scheme is designed to enable Below Poverty Line (BPL)
households identified by the community through Gram Sabha’s following criteria suggested for such
identification from time to time, to build their houses or get house sites with financial and technical
assistance from the Government.

Components of the Scheme

PMAY has the following Components;

Assistance for construction of a new house:

The unit cost of an PMAY house in plain areas and in hill states and difficult areas ( including IAP
districts) would be as given in the schedule attached. Difficult areas are those where due to reasons
like low availability of materials , poor connectivity and adverse geographic, climate and geological
conditions, the cost of construction goes up significantly. The identification of difficult area within a
state shall be done by the State Government based on the methodology developed by it and approved
by the Empowered Committee for the Programme . Village Panchayats may be treated as the unit.

If States provide additional assistance, minimum built up area can be enhanced. Maximum area can
be fixed by states to prevent people from falling into debt. Normally, individual buildings alone may
be taken up under the scheme. Wherever the beneficiaries specifically so prefer, duplex housing can
be permitted. In congested localities where the cost of land is very high, the beneficiaries may be
allowed to construct multi-storey building with each floor being given to one family. In such cases, it
shall not exceed three floors including the ground floor and there should be a multi-party agreement
with the State Government specifying the construction and maintenance responsibilities.

Upgrading of Kutcha or dilapidated house :

This would involve upgradation of roof/walls, repair/replacement of parts and the like. Upgradation
may reuse/recycle materials. Through use of additional material/replacement of material, changes in
design enabling durability, and better workmanship, the house should, with reasonable maintenance,
be capable of lasting at least 30 years. Assistance would be as given in the schedule to the guidelines.

Provision of house site:

The landless poor are particularly vulnerable as they bear the double disadvantage of being
unsheltered and with no land to build a house on. Assistance as per schedule would be provided for
the purpose of providing house sites. State Governments may notify the entitlements for house sites
in their respective States. If justified, this could vary within the state. Different extents of land may be
prescribed for different localities based on the availability of land and its cost. For the house sites
component, the District Collector should identify public lands available in the habitations and allot
them to the eligible landless. In case public land is not available the required land may be purchased
by following procedure prescribed by the State Government. If this is not possible, land acquisition
may be undertaken as the last resort.

Special projects:
Five percent of lAY allocation would be retained at the Central level as reserve fund. Special project for
utilising the reserve fund can be posed by the States/UTs for the following purpose:

(1) Rehabilitation of BPL families affected by natural calamities.

(2) Rehabilitation of BPL families affected by violence and law and order
problems.
(3) Settlement of particularly vulnerable tribal groups

Funding Pattern

The cost of the Scheme except the component for provision of house sites would be shared between
Government of India and State Governments in the ratio 60:40. In the case of North Eastern States the
ratio is 90:10. The cost of providing house sites would be shared 50:50 between Government of India
and State Governments. Government of India would provide the full cost in respect of Union Territories
(UTs).