Indira Awas Yojana (IAY)

The Indira Awas Yojana was started in 1985-86 as a sub-plan of RLEGP. In 1989-90, after merging the RLEGP with Jawahar Rozgar Yojana, this plan also became a part of Jawahar Rozgar Yojana (JRY).
Since January 1, 1996, it was again separated from JRY. At present, LAY is one of the six components of the Bharat Nirman Programme.
The objective of lAY is to provide financial assistance for construction / upgradation of houses to BPL rural households belonging to Scheduled Castes and Scheduled Tribes, freed bonded labourers, non-SC/ST rural households, widows and physically handicapped persons living in the rural areas.
At present, it is the flagship ship programme for rural housing.
The main points of this scheme are as follows:
Since 1993-94, the benefit of Indira Awas Yojana is being provided even to those rural poor of non- schedule caste/schedule tribe who are living below the poverty line.
A minimum of 60% of funds are to be utilized for construction of houses for the SC/ST people.
From 1995-96, lAY benefits have been extended to widows or next of kin of defence personnel killed in action.
Benefits have also been extended to ex-servicemen and retired members of para military forces as long as they fulfil the normal eligibility conditions of IAY.
3% of funds are reserved for the disabled persons living below the poverty line in rural areas.
Under the plan, the allocation of the house is done in the name of the female member of the benefited family or in the joint names of husband and wife.
Sanitary latrine and smokeless chulha are integeral to an IAY house.
Under lAY, w.e.f. 1-4-2013 the government has decided to enhance the unit assistance from Rs. 45000 to Rs. 70000 in plain areas and Rs. 48500 to Rs. 75000 in hilly/difficult areas including lAP districts. Increase in assistance is applicable w.e f. 1-4-2013. In addition the lAY beneficiary is also eligible to avail loan upto Rs. 20000 per housing unit at an interest rate of 4% p.a. Further, IAY funds can be utili sed for upgradation of a katcha house for a subsidy of Rs. 15000 per unit is provided.
Under the scheme, financial resources are shared between the centre and the state on a 75 : 25 basis. In case of NE states, the funding pattern has recently been revised to 90: 10.
From 2006-07, 15% of lAY funds are being earmarked for minorities.
Further, a scheme of household site was started in August 2009.
Also, since 2011-12, the district administration has been allowed to construct houses for the old aged, widows and physically handicapped persons if they so desire.
During the XI Five Year Plan, the physical target was for construction of 140 lakh houses. Against, this, 126·98 lakh houses were constructed and 31· 88 lakh houses are under construction.
In the year 2013-14, 13·73 houses were constructed.