Mumbai: To meet its ambitious target of constructing one crore houses in urban areas by 2022, the government will have to raise around Rs 1 lakh crore over the next three years, according to rating agency Crisil.The government had launched its flagship Pradhan Mantri Awas Yojana - Urban (PMAY-U) scheme on June 25, 2015, with an aim to provide affordable housing for all by 2022.

The rating agency noted that as of November 26, although 63 lakh houses had been sanctioned, only 12 lakh have been constructed, while 23 lakh are under construction.

Among states, Andhra Pradesh, Uttar Pradesh, Maharashtra, Madhya Pradesh and Tamil Nadu together accounted for 55 per cent share of the sanctions, it said.

The government aims to sanction 75 lakh houses and construct 30 lakh of them by the close of FY19, it added.

The government needs to contribute Rs 1.5 lakh crore in seven years through 2022, at an average Rs 1.5 lakh per house, however, Crisil said only 22 per cent of this, or Rs 32,500 crore, has been disbursed so far.

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Crisil pointed out that the PMAY-U scheme also faces headwinds such as unavailability of land in prime areas, low participation of private developers on account of brand dilution, bidding mechanism, stringent cost and time schedules resulting in low yields and increasing construction cost due to absence of bulk sourcing of materials.

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