Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0)
Why it Matters?
The Centre has approved the construction of over 2.34 lakh houses under PMAY-Urban 2.0 across nine states, bringing the total sanctioned houses under the scheme to 7,09,979.
What You Should Know?
PMAY-U 2.0 aims to construct 1 crore pucca houses over the next 5 years for the urban poor and middle class.
The total investment is pegged at ₹10 lakh crore, with a government subsidy of ₹2.30 lakh crore.
Eligibility:
Economically Weaker Section (EWS): income up to ₹3 lakh/year
Low Income Group (LIG): ₹3–6 lakh/year
Middle Income Group (MIG): ₹6–9 lakh/year
Beneficiaries must not own a pucca house anywhere in India.
Focus groups include Scheduled Castes (SCs), Scheduled Tribes (STs), minorities, widows, Persons with Disabilities (PwDs), street vendors, safai karamcharis, artisans, Anganwadi workers, and slum dwellers.
Four key verticals of PMAY-U 2.0:
Beneficiary-Led Construction (BLC): Assistance to EWS families to build homes on their own land; States/UTs may provide land rights (pattas) to the landless.
Affordable Housing in Partnership (AHP): Houses for EWS with public-private partnership; includes Technology Innovation Grant (TIG) of ₹1,000/sq.m for innovative construction.
Affordable Rental Housing (ARH): Rental homes for migrant workers, industrial laborers, working women, etc.; offers TIG of ₹3,000/sq.m for green and modern technology use.
Interest Subsidy Scheme (ISS): Offers 4% interest subsidy on loans up to ₹25 lahks; maximum benefit capped at ₹1.80 lahks, paid in 5 yearly installments.
The cost of construction is shared among the Ministry of Housing and Urban Affairs, State Governments /UTs /Urban Local Bodies (ULBs), and the beneficiaries, with region-specific cost-sharing ratios.
The Credit Risk Guarantee Fund Trust (CRGFT) corpus has been enhanced from ₹1,000 crore to ₹3,000 crore to ease access to affordable housing loans for poor households.
A Technology and Innovation Sub-Mission (TISM) has been created to promote disaster-resilient, climate-smart, and green construction methods, ensuring faster, high-quality housing delivery.
All States and Union Territories (UTs) are required to formulate an Affordable Housing Policy to encourage private and public investment in low-cost housing ecosystems.