Indira Awaas Yojana (IAY)

Shelter is a basic need of a citizen which is critical for determining the quality of human life. A roof over the head endows a shelter-less person, with an essential asset and improves his physical and mental well being. Hence, fulfilling the need for rural housing and tackling housing shortage particularly for the poorest is an important task to be undertaken as part of the poverty alleviation efforts of the government.

The Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development. Under the scheme, financial assistance is provided to the Below Poverty Line (BPL) households in the rural areas for construction of dwelling units. It has been in operation since 1985-86.

Salient Features

• The funding of IAY is shared between the Centre and States in the ratio of 75:25.
• In the case of UTs, entire funds of IAY are provided by the Centre.
• In case of NE States, the funding ratio between the Centre & States is 90:10.
• The ceiling on construction assistance under IAY is Rs 45,000 per unit in the plain areas and Rs 48,500 in hilly/difficult areas and 60 IAP districts.
• For upgradation of kutcha house, the financial assistance is Rs 15,000 per unit.
• In addition to the unit assistance availed under IAY, a beneficiary can also borrow a top-up loan upto Rs 20,000/- from any nationalized Bank at 4% interest per annum under Differential Rate of Interest (DRI) Scheme.

Criteria

• The criteria for allocation of IAY funds to the States & UTs involve assigning 75% weightage to housing shortage and 25% to poverty ratio.
• The allocation amongst districts is based on 75% weightage to housing shortage and 25% weightage to SC/ST component.
• Further, 60% of the IAY allocation is meant for benefiting SC/ST families, 3% for physically handicapped and 15%m for minorities.
• Also the IAY houses are expected to be invariably allotted in the name of women.
• In addition, 5% of the central allocation can be utilized for meeting exigencies arising out of natural calamities and other emergent situations Bharat Nirman Programme Rural Housing is one of the six components of Bharat Nirman Programme.

Target

Under Bharat Nirman Programme Phase-I, 60 lakh houses were envisaged to be constructed through Indira Awaas Yojana all over the country during the four years i.e. from 2005-06 to 2008-2009. Against this target, 71.76 lakh houses were constructed with an expenditure of Rs 21720.39 crore. The target for the next five years period starting from the year 2009-10, has been doubled to 120 lakh houses.

During the first two years of the Bharat Nirman Programme Period-Phase-II, approx. 70.81 lakh houses have been constructed.

Further, for the current financial year 2011-12, the central allocation under IAY is Rs 10000.00 crore. Out of this Rs 9491.20 crore is earmarked for normal IAY for construction of 27.27 lakh houses.

Besides this, Rs 500 crore is for homestead scheme. Thus, the total Rs 9991.20 crore is earmarked for IAY. Out of this, an amount of Rs 6929.78 crore has been released to the various districts of the States/UTs (Upto 31/12/2011).

Against the physical target for construction of 27.27 lakh houses, 11.07 lakh houses have been constructed.

Since inception of the scheme about 272.83 lakh houses have been constructed with an expenditure of Rs 78986.81crore (upto 31.12.2011).

Indira Awas Yojna (IAY) has been allocated Rs. 15,184 crore for the financial year 2013-14.