A Decade of Delays: PMAY Ghaziabad’s Housing Challenges

The Pradhan Mantri Awas Yojana (PMAY), a flagship housing scheme launched to provide affordable homes to the economically weaker sections (EWS), marks its 10th year in the city. Despite the ambitious goals, none of the allotted units have been delivered, leaving beneficiaries waiting indefinitely.

A Decade of Delays: Government and Private Projects Stalled

Under the PMAY Ghaziabad, the Ghaziabad Development Authority (GDA) was to construct 3,550 housing units in its colonies, while private developers were tasked with building 6,150 units. However, none of the private projects have been completed, and the GDA has yet to hand over its 2,000 ready units due to a lack of essential amenities like electricity, water, sewer connections, and approach roads.

According to a senior GDA official, the delay is primarily due to pending approvals and funds from various departments, including the Public Works Department (PWD), Uttar Pradesh Power Corporation Limited (UPPCL), UP Jal Nigam, and Ghaziabad Municipal Corporation (GMC). These delays have left buyers in an endless waiting loop.

Private Developers Struggle with Affordable Housing

Private developers have also failed to meet their obligations under PMAY Ghaziabad. Of the over 6,000 units assigned to private builders, none have reached completion. Developers cite initial lack of incentives and rising construction costs as key challenges. CREDAI officials claim the government’s rigid price caps and delayed funding releases have made affordable housing economically unviable.

GDA Housing Schemes: Status of Units

The GDA-administered housing schemes under the program include:

Madhuban Bapudham: 856 units
Dasna: 432 units
Pratap Vihar: 1,200 units
Noor Nagar: 400 units

While 2,000 units are ready, they remain unoccupied due to missing infrastructure. The PMAY Ghaziabad initiative has struggled to address these gaps.

Policy Adjustments and Price Revisions

In 2021, the GDA board revised the pricing for units under the scheme, increasing rates from ₹4 lakh to ₹6 lakh per unit. Under the revised scheme:

The central government funds ₹2.5 lakh.
₹1 lakh is contributed by the state government.
Beneficiaries are required to pay the remaining ₹2.5 lakh.

Payments are released in stages, with the final tranche issued upon project completion.

Affordable Housing for EWS and LIG Categories

PMAY Ghaziabad mandates that private developers allocate 10% of their total flats for EWS and another 10% for low-income groups (LIG). However, compliance has been minimal. For instance:

EWS Units: Out of 4,860 planned, only 1,717 have been constructed, with 1,455 allocated.
LIG Units: Of the 4,860 planned, only 1,255 have been constructed.

The cost caps for these units remain low—₹6 lakh for EWS flats and ₹9 lakh for LIG flats—making them unviable for developers.

Challenges in Affordable Housing Development

CREDAI-NCR Secretary Gaurav Gupta highlighted that the rising cost of land, labor, and construction materials has made affordable housing economically impractical under current guidelines. Developers are urging the government to remove price caps to make projects feasible under PMAY Ghaziabad.

The government does offer some benefits, such as additional Floor Area Ratio (FAR) and shelter fee exemptions for developers constructing smaller projects. However, industry experts have criticized these measures as insufficient to address the root issues.

The Road Ahead

While the PMAY Ghaziabad scheme aims to provide “Housing for All,” its implementation underscores significant challenges. Delays in funding, lack of coordination among authorities, and the economic impracticality for private developers continue to hinder progress. To meet the scheme’s objectives, authorities must streamline processes, release funds promptly, and reevaluate price caps to align with market realities.

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