Key Government Housing and Urban Development Schemes

India’s rapid urban expansion requires structured policy interventions to manage housing shortages, infrastructure gaps, public sanitation, and urban poverty. The Ministry of Housing and Urban Affairs (MoHUA) along with the Ministry of Rural Development implements flagship schemes to upgrade urban infrastructure, deliver all-weather housing, expand public transit, and secure basic civic services. These programs combine direct financial subsidies, technology adoption, and capacity building across states and Urban Local Bodies (ULBs).

Key Housing and Shelter Infrastructure Schemes

Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0)

Launched for a five-year period from 2024 to 2029, PMAY-U 2.0 targets housing requirements for 1 crore urban poor and middle-class households.

• The scheme carries a total investment outlay of ₹10 lakh crore, supported by ₹2.30 lakh crore in central assistance.
• Central assistance grants up to ₹2.50 lakh per unit across four distinct implementation verticals: Beneficiary-Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and the Interest Subsidy Scheme (ISS).
• The Interest Subsidy Scheme offers a 4% interest subsidy on home loans up to ₹8 lakh for households with annual incomes up to ₹9 lakh, provided the total loan value does not exceed ₹25 lakh and property value stays within ₹35 lakh.
• The Credit Risk Guarantee Fund Trust (CRGFT) corpus stands expanded from ₹1,000 crore to ₹3,000 crore to back housing loans for Economically Weaker Section (EWS) and Low Income Group (LIG) families.

Pradhan Mantri Awas Yojana – Gramin (PMAY-G)

Administered by the Ministry of Rural Development, PMAY-G focuses on delivering pucca houses with basic amenities to homeless families and those living in kutcha structures in rural regions.

• Financial support equals ₹1.20 lakh per unit in plain areas and ₹1.30 lakh in hilly states, difficult areas, and Integrated Action Plan (IAP) districts.
• Construction costs are shared between the central government and states in a 60:40 ratio for plain regions and 90:10 for Himalayan and North-Eastern states.
• Beneficiaries receive 90 to 95 days of unskilled labor wage support under MGNREGA along with ₹12,000 assistance for toilet construction under the Swachh Bharat Mission.

Urban Infrastructure and Rejuvenation Missions

Atal Mission for Rejuvenation and Urban Transformation 2.0 (AMRUT 2.0)

Launched in October 2021 for a five-year operational window, AMRUT 2.0 aims to make Indian cities water secure and self-reliant.

• The total financial outlay for AMRUT 2.0 is ₹2,99,000 crore, supported by a central assistance pool of ₹76,760 crore.
• The mission expands coverage from 500 cities under AMRUT Phase-I to all ~4,700 statutory towns across India.
• Target outputs include installing 2.68 crore household tap connections and providing 100% sewerage and septage management coverage across 500 primary AMRUT cities.
• States submit State Water Action Plans (SWAP) to fund projects focused on sewage treatment, lake rejuvenation, and green park development.

Smart Cities Mission (SCM)

Launched in June 2015, the Smart Cities Mission drives local urban development through core infrastructure development, technology integration, and area-based development.

• SCM covers 100 selected cities through a Centrally Sponsored Scheme structure offering ₹500 crore central support per city over the project duration.
• Participating cities set up Integrated Command and Control Centres (ICCC) to monitor municipal traffic, waste management, and emergency response systems.
• Development models divide into Area-Based Development (retrofit, redevelopment, or greenfield projects) and Pan-City Smart Solutions using digital platforms.

Urban Livelihoods, Sanitation, and Transport Frameworks

PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

Introduced in June 2020 under MoHUA, PM SVANidhi provides micro-credit facilities to urban street vendors impacted by operational disruptions.

• Vendors access working capital loans starting with a first tranche of ₹10,000. Timely repayment unlocks a second tranche of ₹20,000 and a third tranche of ₹50,000.
• Beneficiaries earn an interest subsidy of 7% per annum on prompt loan repayments, credited quarterly directly to their bank accounts.
• Digital transactions receive cash-back incentives up to ₹1,200 annually, fostering digital payment adoption among micro-merchants.

Swachh Bharat Mission – Urban 2.0 (SBM-U 2.0)

Launched in October 2021, SBM-U 2.0 focuses on achieving garbage-free status for all statutory towns and cities.

• SBM-U 2.0 operates with a total financial allocation of ₹1,41,600 crore.
• Priorities focus on source waste segregation, 3R principles (Reduce, Reuse, Recycle), remediation of legacy dumpsites, and complete liquid waste treatment in cities with populations under 1 lakh.
• The scheme targets Open Defecation Free (ODF+ and ODF++) status verification across all urban local bodies.

Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)

DAY-NULM addresses urban poverty through skill training, self-employment support, and institutional capacity building.

• It funds Self-Help Group (SHG) formation, providing a revolving fund of ₹10,000 per group.
• The Employment through Skills Training and Placement (EST&P) component offers fully subsidized skill training to urban poor youth.
• The Self Employment Programme (SEP) grants interest subvention above 7% on bank loans for individual micro-enterprises up to ₹2 lakh and group enterprises up to ₹10 lakh.

PM-eBus Sewa Scheme

Approved to expand city bus operations, PM-eBus Sewa upgrades urban transport through public-private partnership models.

• The scheme deploys 10,000 electric buses across cities with populations between 3 lakh and 40 lakh.
• Central financial support covers bus procurement, power infrastructure, and depot development over an operational period extending to 2037.

Comparative Summary of Key Urban Schemes

Key Facts and Data Summary

• PMAY-U 2.0 provides housing financial assistance to 1 crore urban poor and middle-class families between 2024 and 2029.
• Under PMAY-U 2.0 Interest Subsidy Scheme, an interest subsidy of 4% is available on the first ₹8 lakh of home loans.
• PMAY-G financial assistance stands at ₹1.20 lakh for plain areas and ₹1.30 lakh for hilly or difficult regions.
• AMRUT 2.0 covers approximately 4,700 statutory towns to deliver 2.68 crore household tap connections.
• The Smart Cities Mission covers 100 cities with an allocation of ₹500 crore per city from central funds.
• PM SVANidhi grants micro-credit loans in three tranches of ₹10,000, ₹20,000, and ₹50,000 with a 7% interest subvention.
• Swachh Bharat Mission-Urban 2.0 carries an overall outlay of ₹1,41,600 crore targeting garbage-free cities.
• DAY-NULM offers a revolving fund of ₹10,000 per urban Self-Help Group.
• PM-eBus Sewa targets deploying 10,000 electric buses across cities with populations between 3 lakh and 40 lakh.