Union Cabinet Greenlights PMAY-U 2.0 with Rs 2.30 Lakh Crore for Housing

The Union Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, which aims to provide financial assistance to one crore urban poor and middle-class families. This initiative will help these families construct, purchase, or rent affordable housing in urban areas over the next five years. The decision was made during a Cabinet meeting chaired by Prime Minister Narendra Modi.

According to a government statement, Rs 2.30 lakh crore will be allocated under this scheme. In the first phase of PMAY-U 2.0, 1.18 crore houses have been sanctioned, with over 85.5 lakh houses already constructed and delivered to beneficiaries. The programme is a major flagship initiative aimed at providing all-weather pucca houses to eligible urban residents.

Financial Assistance and Eligibility

Under PMAY-U 2.0, families from economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) without a pucca house anywhere in India are eligible for assistance. EWS households have an annual income of up to Rs 3 lakh, LIG households earn between Rs 3 lakh and Rs 6 lakh annually, and MIG households have an annual income from Rs 6 lakh to Rs 9 lakh.

The Interest Subsidy Scheme will offer subsidies on home loans for EWS, LIG, and MIG families. Beneficiaries taking loans up to Rs 25 lakh for houses valued up to Rs 35 lakh will receive a 4% interest subsidy on the first Rs 8 lakh loan for up to 12 years. Eligible beneficiaries will get a maximum subsidy of Rs 1.80 lakh in five yearly instalments.

Affordable Housing in Partnership

The Affordable Housing in Partnership (AHP) segment of PMAY-Urban will provide financial assistance to EWS beneficiaries for owning houses built through various partnerships between states, Union Territories (UTs), and cities. Redeemable housing vouchers will be given to beneficiaries purchasing houses from private projects that comply with all necessary norms.

An additional grant called the Technology Innovation Grant (TIG) of Rs 1000 per sqm/unit will be provided to AHP projects using innovative construction technologies. This aims to encourage the adoption of new building methods that can enhance the quality and speed of construction.

Affordable Rental Housing

The Affordable Rental Housing (ARH) vertical will create adequate rental housing for working women, industrial workers, urban migrants, homeless individuals, destitute persons, students, and other eligible beneficiaries. ARH aims to ensure affordable and hygienic living spaces for urban dwellers who do not wish to own a house but need short-term housing or lack the financial capability to buy or construct one.

Beneficiaries can access their accounts through websites, OTPs, or smart cards as part of the scheme's digital push-button system. This ensures transparency and ease of access for those receiving subsidies or other forms of assistance under PMAY-U 2.0.

In line with the Prime Minister's vision, PMAY-U 2.0 involves an investment of Rs 10 lakh crore. This investment aims to address the housing needs of one crore families, ensuring every citizen enjoys a better quality of life through improved housing conditions.

The government's commitment to providing affordable housing is evident through these comprehensive measures designed to cater to various segments of society. By addressing both ownership and rental needs, PMAY-U 2.0 seeks to make urban living more accessible and comfortable for all eligible citizens.

This initiative marks a significant step towards improving urban housing infrastructure in India, reflecting the government's dedication to enhancing the living standards of its citizens through targeted financial support and innovative solutions.