The Cabinet on Friday approved the revamped Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) and Urban (PMAY-U) at an estimated cost of around Rs 4.35 trillion for the Centre over the next five years.
Under PMAY-U 2.0, the government has estimated the construction of 10 million houses for urban poor and middle-class families with an investment of Rs 10 trillion including the government subsidy of Rs 2.3 trillion.
Also, the cabinet committed on economic affairs approved eight rail projects worth Rs 24,657 crore. The projects, covering 14 districts in seven states, is expected to increase the existing rail network by 900 kms. These projects will primarily cater to the goods and passenger traffic generating in the eastern part of the country, and likely be completed by 2030-31.
For PMAY-G 2.0, 20 million houses will be built with a total outlay of Rs 3.06 trillion for FY24-25 to FY28-29 including central share of Rs 2.05 trillion and state matching share of Rs 1 trillion.
Under PMAY-U, financial assistance will be provided families through states/Union Territories (UTs)/PLIs to construct, purchase or rent a house at an affordable cost in urban areas in five years.
In addition, the corpus fund of Credit Risk Guarantee Fund Trust (CRGFT) has been increased from Rs 1,000 crore to Rs 3,000 crore to provide benefit of credit risk guarantee on affordable housing loans from banks and housing finance companies.
Families belonging to EWS/LIG/Middle Income Group (MIG) segments having no pucca house anywhere in the country are eligible to purchase or construct a house under PMAY-U 2.0.
Under interest subsidy scheme component, the government will provide subsidy on home loans for EWS/LIG and MIG families taking loans up to Rs 25 lakh with house value up to Rs 35 lakh at 4% interest subsidy on first Rs 8 lakh loan up to 12 years tenure. A maximum of Rs 1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalments through push button.
For PMAY-G 2.0, financial assistance is to be provided for the construction houses at existing unit assistance of Rs 1.20 lakh in plain areas and Rs 1.3 lakh in North Eastern Region States and hill states of Himachal Pradesh, Uttarakhand, Union Territories of Jammu & Kashmir and Ladakh.
Continuation of the scheme beyond March 2026 will be after evaluation of the PMAY-G by the Niti Aayog and re-appraisal of the scheme by EFC.
The approval would facilitate all the homeless and people living in dilapidated and kutcha houses to build safe and secure house of good quality with all the basic amenities. This will ensure safety, hygiene and social inclusiveness of the beneficiaries.