Is Rs 48,000 cr alone enough to tackle India's affordable housing challenge?

That the present government is keen to build affordable homes is one of the messages of Union budget of 2022-23. The budget is clearly focussing on those who have fewer resources. Spare a thought for all those who live on rented house. Honestly, they live at the mercy of their landlords. Further, they have to live under constant pressure that the landlord may not ask them (tenant) to vacate the house. Of course, if they get house of their own, they can live there with their families.

It goes without saying that allocation of Rs 48,000 crore towards completion of 80 lakhs home under PM AwasYozna is a welcome step to provide homes to millions of Indians with not very big salaries. It should give huge relief and hope that all those who still don't have roof of their own. One only hopes that the money allocated for the purpose would be spend carefully.

There is no question that affordable housing is important to very large number of Indians who cannot buy luxury homes. Experts say that children in stable housing do better in school and are less likely to experience disruption in their education due to unwanted moves. So by giving roof to people, we also make better citizens. Surely, decent, affordable housing reduces stress which leads to improvement in both physical and mental health. As that was not enough, affordable houses also frees up funds within families' tight budgets to spend on health care and food. Considering all these facts in mind, the alumnus of Jawaharlal Nehru University, Nirmala Sitharaman has done a great job as a Finance Minister of India.

Talking about budget proposals, Dhruv Agarwala, Group CEO, Housing.com, Makaan.com, says that "in feel that the provision of Rs 48,000 crore under Prime Minister Awas Yojana for completion of 80 lakh houses will help the government in achieving its target of Housing For All. This is a dream of Modi government to provide homes to all.''

If you closely read the budget, you would come to the conclusion that budget focus was more on boosting the overall infrastructure, urban planning etc. not just in metros but also to tier II-III cities. This is very important step. Government must not invest only on a few big Metro cities. Sadly, we have seen that only big cities got everything in terms of funds in the past.

Well, as expected affordable housing was once again the focus as the Government is moving towards 'Housing for all' by announcing the completion of 80 lakh houses under PMAY and allocation of huge sum under the PM Housing scheme. The Central Government will work with state government for reduction of time for land and construction related approvals promoting affordable housing for lower middle class, middle class and economically weaker sections in urban areas.

Before we move further, let's us know what is PMAY? We must remember that PMAY, the Pradhan Mantri Awas Yojana was launched in 2015 under the Housing for All Mission. With the aim of achieving adequate and affordable housing for the urban poor, this credit-linked subsidy scheme offers an interest subsidy to those applying for a home loan under PMAY. This ambitious scheme covers more than 4,331 cities and towns. Affordable Rental Housing Complexes (ARHC) is part of this initiative catering to migrants living in urban areas and working in informal sector industries. Meanwhile, Pradhan Mantri Awas Yojana Gramin used to be Indira Awas Yojana till it was renamed in 2016. Under it, a whopping 1,03,01,107 homes have already been sanctioned in rural areas.

Having said that one only hopes that future budgets would also give impetus to affordable housing in India. It should be remembered that affordable housing is important to the economic growth of our country. It is a well-known fact that affordable homes can attract and retain employees to your community- a selling point and a competitive advantage for area employers. Affordable homes also support the local workforce so they can live close to their jobs. Shorter commutes allow workers to spend more time with their families while the community benefits from reduction in traffic congestion, air pollution, and expenditures on roads. In revitalizing communities, the construction of affordable homes can also help to stimulate economic growth.

It is pity that mostly developers build luxury homes with golf course facing to park facing. How many of them make flats/ homes for those who earn between Rs 40,000-60,000 per month? The number of such builders is very less. While builders always seek benefits from the government, will they ever rise equal to the occasion and serve the people with honestly?

While the budget has given lot of money for affordable housing, the dream to make houses for the lower middle class and financially weak section of the society would only be achieved if all other stakeholders of the realty sector work in tandem. One has to remember that both Centre and State governments must work together and in tandem to build affordable homes. Those who make such homes must be given tax and other benefits. They should be provided land close to cities on cheap rates. If they are given land far off from the cities, the buyers won't go there. With good homes, the government has to provide good transport facility, schools, colleges, markets and hospitals too.

Finally, the government has to give all possible boost to affordable housing even in future. It has to continue process. This Modi government in the centre would always be remembered for pushing the affordable housing sector if it pumps money in future too. Surely, it looks serious and sincere for the just cause of not very affluent Indians.

(The author is a Delhi-based journalist who closely follows South Asia, business, Delhi and Indian Diaspora)