A Parliamentary standing committee has recommended the assistance provided under the Pradhan Mantri Awas Yojana - Gramin (PMAY-G) to be raised from current Rs 1.2 lakhs in keeping with the rising inflation and input costs.

The scheme has been extended till March 2029 with an aim to construct two crore additional homes across the country for the landless people.

“With rising inflation having a detrimental effect on the cost factor associated with the raw material, transportation cost, labour cost etc, constructing a new house of the requisite area under PMAY-G for poor and needy beneficiaries with such assistance amount seems to be an arduous task," said the Parliamentary Standing Committee on Rural Development and Panchayati Raj, headed by Congress MP Saptagiri Sankar Ulaka.

It pointed out that the assistance under the scheme had remained stagnant at Rs 1.2 lakh for a considerable period of time, often leading to cases in which the houses remained incomplete. "Housing for All" vision might not achieve its target until the beneficiaries were provided "proper hand-holding" in terms of financial assistance of right value and at the right juncture, said the panel in their report tabled in the Lok Sabha on Thursday.

The report also highlighted that more than two lakh landless beneficiaries were still waiting to get land or assistance from state governments to construct homes, which might also cause delay in hitting the target.

The committee also noted that against an initial target of 2.95 crore houses to be constructed by March next year, 2.66 crore were constructed as on October 22 and 29 lakh were yet to be completed.

A target of constructing an additional two crore houses in the next five financial years -- 2024 to 2029 -- has been approved by the government, the report said.

"The committee finds it utmost necessary that a review of per-unit assistance be done on priority basis, particularly when the scheme has been extended to March 2029," the panel said and recommended revision of the per-unit assistance through a suitable hike.

The panel expressed concern over landless beneficiaries getting assistance for land to build their house and, citing Union rural development ministry data, said that of 5,73,311 (5.73 lakh) landless beneficiaries identified under PMAY-G, 59 per cent or 3,60,837 (3.60 lakh) had been provided land for the construction of houses.