Real Estate
PMAY-U 2.0: Union Cabinet Approves ₹2.30 Lakh Crore Housing Assistance for Urban Poor and Middle-Class Families
By GeoSquare News Desk · Published 2024-08-10
The Union Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, a flagship programme aimed at providing all-weather 'pucca' houses to all eligible candidates in urban areas. The government will provide assistance of ₹2.30 lakh crore under the scheme to construct, purchase, or rent a house at an affordable cost in urban areas.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi. According to a statement, the government will provide assistance of ₹2.30 lakh crore under the scheme. A total of 1.18 crore houses have been sanctioned in the first phase of PMAY-U 2.0, while more than 85.5 lakh houses have already been constructed and delivered to the beneficiaries.
Under the PMAY-U 2.0, families belonging to economically weaker sections, low income group, or middle-income group having no pucca house anywhere in the country are eligible to purchase or construct a house. EWS households are families with an annual income up to ₹3 lakh. LIG households are families with an annual income from ₹3 lakh up to ₹6 lakh. MIG households are families with an annual income from ₹6 lakh up to ₹9 lakh.
The government will also provide interest subsidy on home loans for EWS, LIG, and MIG families under the Interest Subsidy Scheme. Beneficiaries taking loan up to ₹25 lakh for house value up to 35 lakh will be eligible for 4 per cent interest subsidy on first ₹8 lakh loan up to 12 years.
The Affordable Housing in Partnership (AHP) segment of the PMAY-Urban will provide financial assistance to EWS beneficiaries for owning houses built under different partnerships between states, UTs, and cities. Redeemable housing vouchers will be given to beneficiaries who purchase house from private projects.
The Affordable Rental Housing (ARH) vertical will create adequate rental housing for working women/industrial workers/urban migrants/ homeless/destitute/students and other eligible beneficiaries. ARH shall ensure affordable and hygienic living spaces for urban dwellers who do not want to own a house but require housing for short term basis or those who do not have the financial capability to construct/buy a house.
The Pradhan Mantri Awas Yojana-Urban (PMAY-U) is a flagship programme of the Central government aimed at providing all-weather 'pucca' houses to all eligible candidates in urban areas. The programme was launched in 2015 and has been successful in providing housing to millions of urban poor and middle-class families.
The Union Cabinet is the supreme decision-making body in India, headed by the Prime Minister. The Cabinet is responsible for making key decisions on policy and governance.