The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 in a meeting on 9 August 2024, which envisages an investment of Rs 10 lakh crores.
The PMAY-U 2.0 will replace the Pradhan Mantri Awas Yojana-Urban (PMAY-U), which was launched on 25 June 2015 and ended on 31 December 2024.
PMAY-U is part of the central government's Housing for All policy, which provides all-weather pucca houses to all eligible beneficiaries in urban areas.
The duration of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 is five years.
It aims to facilitate the construction of one crore houses in urban areas for the urban poor and middle-class families.
The Union Ministry of Housing and Urban Affairs will be the nodal body for implementing the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 scheme.
All areas declared as towns by law and mentioned in the 2011 census across the country will be covered.
The Economically Weaker Section (EWS), Low Income Group (LIG) and the Middle Income Group(MIG) in the urban areas that do not have any pucca houses are eligible under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0. Under the Scheme, the :
The components of the PMAY-U 2.0 are as follows.
The total investment required under the PMAY-U 2.0 scheme to build one core house is Rs 10 lakh crore over five years.
The central government/state government/Union Territories will provide Rs 2.30 lakh crore assistance under the scheme.
The government will provide Rs 2.50 lakh of assistance per house constructed in the BLC and AHP component of the scheme.
As a Centrally Sponsored Scheme, the burden of financing it will be shared by both the central government and the state government in a fixed ratio, as follows;
Beneficiaries taking loans up to Rs 25 lakh with a house value up to Rs 35 lakh will be eligible for a 4 per cent interest subsidy on the first Rs 8 lakh loan for a duration of up to 12 years.
A maximum of Rs 1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalments through the push button.
The entire cost of the subsidy will be borne by the government of India.
The PMAY-U 2.0 has laid certain preconditions for the states/UTs to be eligible to participate in the scheme. The state government/UT has to formulate an “Affordable Housing Policy" containing various reforms and incentives as specified by the central government.
The Technology & Innovation Sub-Mission (TISM) is part of the PMAY-U 2.0 scheme. It will facilitate the state/UT and other stakeholders' adoption of modern, green technology for faster house construction and disaster-resistant, climate-smart buildings