PMAY: Govt frames model PPP policy to boost private participation in affordable housing
[With the government granting infrastructure status to affordable housing in Budget 2017-18, the private players have started showing interest]
The central government has paved the way for private players to provide low-cost housing in the country.
Ministry of housing and urban poverty alleviation (HUPA) has framed a model public private partnership policy for affordable housing to give the much-needed fillip to Prime Minister Awas Yojana (PMAY), a flagship initiative of the BJP government. Though at the time of launch of PMAY, the government had said private participation is required to provide low-cost housing, no clear policy had been formulated leading to minimal interest of private players in the sector. So far, only eight PPP projects have been initiated for affordable housing. All the projects are on government land.
With the government granting infrastructure status to affordable housing in Budg2017-18, the private players have started showing interest. This has led to HUPA ministry laying out a clear model policy for private participation. Now, the government would give benefits - through interest subsidy and direct per beneficiary amount - to private players even if the project is planned on private land. The much-needed policy comes two years after the formal launch of PMAY on June 25, 2015.
Six PPP models have been identified in the policy, which would be put in the public domain to invite comments. The models differ on aspects like land ownership, private developer's risk exposure, maintenance of houses and beneficiary-developer monetary relationship.
The policy says, "The fundamental strategy underlying Public Private Partnerships as an implementation strategy for affordable housing is to combine the strengths of the private sector with those of the public sector in order to overcome challenges faced by affordable housing and to achieve superior outcomes.,
The central government has paved the way for private players to provide low-cost housing in the country.
Ministry of housing and urban poverty alleviation (HUPA) has framed a model public private partnership policy for affordable housing to give the much-needed fillip to Prime Minister Awas Yojana (PMAY), a flagship initiative of the BJP government. Though at the time of launch of PMAY, the government had said private participation is required to provide low-cost housing, no clear policy had been formulated leading to minimal interest of private players in the sector. So far, only eight PPP projects have been initiated for affordable housing. All the projects are on government land.
With the government granting infrastructure status to affordable housing in Budg2017-18, the private players have started showing interest. This has led to HUPA ministry laying out a clear model policy for private participation. Now, the government would give benefits - through interest subsidy and direct per beneficiary amount - to private players even if the project is planned on private land. The much-needed policy comes two years after the formal launch of PMAY on June 25, 2015.
Six PPP models have been identified in the policy, which would be put in the public domain to invite comments. The models differ on aspects like land ownership, private developer's risk exposure, maintenance of houses and beneficiary-developer monetary relationship.
The policy says, "The fundamental strategy underlying Public Private Partnerships as an implementation strategy for affordable housing is to combine the strengths of the private sector with those of the public sector in order to overcome challenges faced by affordable housing and to achieve superior outcomes.,
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