Pradhan Mantri Awas Yojana-Urban 2.0

The Union Cabinet, chaired by the Prime Minister recently approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0.

About (PMAY-U) Pradhan Mantri Awas Yojana-Urban 2.0:

• This scheme aims to construct 1 crore houses for urban poor and middle-class families over the next five years.
• The primary investment of ₹10 lakh crore and a government subsidy of ₹2.30 lakh crore is funded for PMAY 2.0.
• The PMAY-U 2.0 is a transformative initiative for realizing the vision of “Housing for All.”
• It is designed to extend financial assistance to urban poor and middle-class families for constructing, purchasing, or renting houses at affordable costs in urban areas.
• This initiative aligns with the Government’s vision to ensure that every citizen has access to a pucca house, thereby enhancing their quality of life.
• Special attention will be given to marginalized groups, including slum dwellers, SC/STs, minorities, widows, persons with disabilities, and other underprivileged sections of society.
• Additionally, groups like Safai Karmi, street vendors, artisans, anganwadi workers, and residents of slums/chawls will receive focused support under this scheme.

Eligibility Criteria:

• It is open to families belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) segments who do not own a pucca house in India.
• Income criteria for eligibility are:
  • EWS households: Annual income up to ₹3 lakh.
  • LIG households: Annual income from ₹3 lakh to ₹6 lakh.
  • MIG households: Annual income from ₹6 lakh to ₹9 lakh.

 Components of PMAY-U 2.0:

• The scheme includes key verticals to address the housing needs in urban areas:
• Beneficiary-Led Construction (BLC): Financial assistance to eligible EWS families to construct new houses on their own available vacant land.
  • States/UTs may also provide land rights (pattas) to landless beneficiaries.
• Affordable Housing in Partnership (AHP): Assisstance to EWS for owning houses constructed in partnership with States/UTs, cities, public, and private agencies.
• Additional grants, such as the Technology Innovation Grant (TIG) of ₹1,000 per sqm/unit, will be provided for projects using innovative construction technologies.
• Affordable Rental Housing (ARH): It will create rental housing for working women, industrial workers, urban migrants, and other eligible beneficiaries.
• Models of Implementation: Utilizing existing government-funded vacant houses and constructing new rental housing units.
• Interest Subsidy Scheme (ISS): It offers a 4% interest subsidy on home loans up to ₹25 lakh for EWS/LIG and MIG families. The subsidy will be provided in five yearly installments, with a maximum subsidy of ₹1.80 lakh.
• Funding Mechanism: Cost of house constriction will be shared among the Ministry, State/UT/ULBs, and beneficiaries, depending on the region.
• The Credit Risk Guarantee Fund Trust (CRGFT) corpus has been increased from ₹1,000 crore to ₹3,000 crore to support affordable housing loans.

Technology & Innovation Sub-Mission (TISM):

• A TISM will be established under PMAY-U 2.0 to guide the adoption of modern, innovative, and green technologies for faster and higher-quality construction of houses.
• It will promote disaster-resistant and climate-smart housing solutions across India.
• States/UTs shall formulate an “Affordable Housing Policy” that includes reforms and incentives to encourage public and private sector participation.
• This policy will play a crucial role in improving housing affordability and achieving the scheme’s objectives.

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