Cabinet Approves PMAY-U 2.0 to Boost Affordable Housing

The Union Cabinet, led by Prime Minister Narendra Modi, has approved PMAY-U 2.0 to provide affordable housing to 1 crore urban poor and middle-class families. The initiative, with Rs 2.30 lakh crore assistance, aims to support the construction, purchase, or rental of homes over five years.

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, greenlit Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 on Friday. The updated scheme will extend financial aid to one crore urban poor and middle-class families via States, Union Territories, and PLIs, facilitating the construction, purchase, or rental of affordable houses in urban areas within a five-year period. The Government has earmarked Rs 2.30 lakh crore for this initiative, according to the Ministry of Housing and Urban Affairs.

Additionally, the Cabinet sanctioned the continuation of Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) from FY 2024-25 to 2028-29, aiming to build two crore additional homes. Financial assistance will uphold current unit aid rates of Rs 1.20 lakh for plain regions and Rs 1.30 lakh for Northeast and hill states, including Himachal Pradesh, Uttarakhand, Jammu and Kashmir, and Ladakh. PMAY-U remains one of India's major flagship programs to provide all-weather pucca houses to eligible urban residents, with 1.18 crore houses approved and over 85.5 lakh already constructed and delivered.

In his Independence Day speech on August 15, 2023, Prime Minister Modi pledged a new scheme to benefit weaker sections and middle-class families by easing homeownership. As of June 10, 2024, the Union Cabinet resolved to support 3 crore additional households in both rural and urban areas. Aligning with PM Modi's vision, PMAY-U 2.0 targets one crore families via a Rs 10 lakh crore investment, ensuring improved living standards for all.

Beneficiary families from EWS, LIG, and Middle Income Group segments without a permanent house in India qualify for PMAY-U 2.0. The scheme addresses urban housing needs through Beneficiary-Led Construction, Affordable Housing in Partnership, Redeemable Housing Vouchers, and Affordable Rental Housing. Implemented as a Centrally Sponsored Scheme, excluding the Interest Subsidy Scheme (ISS) aspect treated as a Central Sector Scheme.

The new phase of PMAY-G aims to construct two crore homes by FY 2029, benefiting nearly 10 crore people. This development aids houseless individuals and residents of dilapidated and kutcha houses in acquiring quality homes with essential amenities, ensuring safety and inclusivity. Launched in April 2016, PMAY-G targets 'Housing for All' in rural areas, aiming for 2.95 crore homes by March 2024.

(With inputs from agencies.)