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Indira Awaas Yojana: Everything you Need to Know

IndianMoney.com Research Team | Posted On Wednesday, April 10,2019, 05:15 PM

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Indira Awaas Yojana: Everything you Need to Know

 

 

Indira Awaas Yojana is a social welfare flagship program initiated by the Government of India, under the leadership of the then Prime Minister Rajiv Gandhi in the year 1985. The Indira Awaas Yojana scheme was a part of a bigger project known as Rural Landless Employment Guarantee Program (RLEGP). The main purpose of this program was to rehabilitate the rural poor and vulnerable groups by providing monetary help and support for the construction of residential dwellings.

Since the inception of the Indira Awaas Yojana, the scheme has provided millions of Indians, the means to build and construct houses. The central idea of the scheme is to provide affordable housing to all. It also aims at eradicating rural poverty along with establishing rural infrastructure. The scheme aims to alleviate general living standards of the rural population, as well as reduce the number of homeless people.

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Indira Awaas Yojana: Everything you Need to Know

Why was it Important to the Nation?

The scheme has changed the face of rural India. The Indira Awaas Yojana has provided homes to millions of homeless people, by helping them fulfill dreams of building homes. The scheme is important as it aims to rehabilitate poor families. The scheme was implemented by the Ministry of Rural Development and provides sufficient funds for the weaker sections of society, ensuring they have sufficient funds to build houses for themselves.

Funds are provided by both the Central Government as well as the State Government in the ratio 75:25. The exception to this provision is seen in Sikkim and North-Eastern states, where the Central Government provides 90% of the funds and the State Government provides the remaining 10%. Initially, the beneficiaries used to get Rs 48,500 for the construction of houses in hilly areas and Rs 45,000 for the construction of houses in plain lands. However, currently (from 2013 onwards), the grants have increased to Rs 75,000 and Rs 70,000 respectively.

Key Features of Indira Awaas Yojana:

Listed below are the main features of the Indira Awaas Yojana:

  • As per the terms of the scheme, the newly built house is for both the husband and the wife and entails joint ownership. The rule changes in case of the unmarried, divorced or widows who also receive monetary grants under this scheme. There have been cases where the ownership of the constructed house is offered to the woman of the house by the government. Houses were allotted on quota basis like disabled or handicapped; the ownership would be given to the individuals under whose name the housing grants were availed.
  • There are certain terms on the design and the standard of constructing these homes. The scheme aims to promote the usage of eco-friendly and sustainable methods for the construction of houses, where the focus is laid on using locally available raw materials and labour.  The houses must be build allowing sufficient space for day to day living and must not contain partitions that would cause inconvenience to the physically disabled and handicapped or isolate them.
  • When it comes to construction of these houses, the Block Development Authority must keep a check and make sure no contractors are given authority to construct these homes. The construction of these houses must be under the management of the beneficiary, who is free to employ laborers for the construction and can make the purchase of construction material as per requirements. The government can help the beneficiaries through authorized departments and provide technical support and assistance. However, if the authorities find any contractor’s involvement in construction of these homes, then the government has the power to withdraw the sanction of the house from these beneficiaries.
  • A specified time limit is provided for the construction of these houses. The first stage of construction involves the construction of the walls up to the lintel level that must be completed within 9 months of receiving the initial funds/ the first instalment. The second stage comes after receiving the second instalment. In this stage the overall construction must be completed along with the roofing and flooring. The second stage must be completed within nine months from receiving the second instalment.
  • There are certain provisions regarding the release of funds under this scheme. As soon as the houses are allotted to the beneficiary, the initial installment is made. The amount consists of 25% of the total cost of construction. The second instalment is given after the completion of the house till the lintel level. This instalment consists of the maximum amount of the construction cost i.e. 60%. The third instalment is given out to the beneficiary, when they start residing in the house along with a functioning latrine. The third instalment consists of the remaining 15% of the construction cost. This money is sanctioned after proper verification of the construction stages and completion of construction. The beneficiaries receive the amount directly to their bank accounts/ post office accounts. The funds are transferred in the form of cash and they can be withdrawn from the bank, only by the beneficiary.

SEE ALSO: How To Get A Subsidy On Your Home Loan?

Target Group for Eligibility:

Monetary support under this scheme is provided to the following groups:

  • Members of the scheduled caste and schedule tribe (SC/ST).
  • Members of the minority community.
  • Members/ individuals enrolled under BPL.
  • Widows
  • Family members of defence personnel who lost their lives while on duty
  • Ex-servicemen and woman and members of the paramilitary force.

Benefits of Indira Awaas Yojana:

Some of the main benefits of the Indira Awaas Yojana are as follows:

  • The scheme is a government initiative that aims to provide monetary assistance with the construction of houses in the rural areas.
  • The house built under this scheme is designed as per the requirements of the beneficiary.
  • The Indira Awaas Yojana aims to utilize the locally produced raw materials like bricks and mortar for the construction of these houses.
  •  The scheme aims to promote both material and technology that is affordable and environmentally sustainable along with the creation of jobs.
  • The Indira Awaas Yojana aims to empower and encourage village panchayats, so that they take a leading role in effectively implementing the housing program.

Special projects taken by Indira Awaas Yojana:

The housing projects headed by the Indira Awaas Yojana, aims to exhibit and apply newer technologies for the construction of houses. The focus is on eco-friendly sustainable methods for the construction of houses as well as locally available construction material.

The main objective of the Indira Awaas Yojana is to rehabilitate the poor and vulnerable families, living below the poverty line. The government also rehabilitates rural families by providing them monetary grants under the Indira Awaas Yojana scheme, when affected by natural disasters like floods, cyclones and so on. 

One of the main purpose of this scheme is to rehabilitate people working in the unorganized sector like bonded laborers and manual scavengers as well as members belonging to the tribal groups. The scheme also encompasses people who has been affected by the working environment due to exposure from asbestos, pesticides, silicosis and seeks to rehabilitate them. The program rehabilitates families belonging to the schedules tribes and traditional forest dwellers along with widows and other individuals, who have been relocated along the international borders.

SEE ALSO:  How To Get A Home Under Pradhan Mantri Awas Yojana?

Reasons why the Indira Awaas Yojana was renamed:

The NDA government has renamed the Indira Awaas Yojana as the Pradhan Mantri Awaas Yojana or PMAY. Though the government did not give any specific reasons for the change in the name of the scheme, they have projected the new scheme will be an improvement over the previous scheme and will have new policies regarding the construction of homes.

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