Key Urban Housing Schemes: Pmay, Ray, Amrut and Smart Cities Mission

Urban housing and basic civic infrastructure form the core of India’s urban transformation agenda under the Ministry of Housing and Urban Affairs. Rapid urbanization requires comprehensive government interventions to address slum proliferation, housing shortages, water supply, sewage treatment, and urban mobility. Key national interventions—including Rajiv Awas Yojana, Pradhan Mantri Awas Yojana – Urban, Atal Mission for Rejuvenation and Urban Transformation, and the Smart Cities Mission—provide targeted financial, technological, and structural frameworks to create sustainable, inclusive cities.

Rajiv Awas Yojana (RAY)

Objectives and Framework

• Launched in 2011, Rajiv Awas Yojana aimed to create a slum-free India by bringing existing informal settlements into the formal housing system.
• The scheme focused on granting property rights to slum dwellers and providing basic civic infrastructure like water, sanitation, and electricity.
• It operated on a two-step strategy involving Slum Free City Plan of Action (SFCPOA) and detailed project reports for specific slum pockets.

Financing and Transition

• Funding was shared between the Centre and States in a 50:50 ratio for large cities and a 75:25 ratio for smaller towns and North-Eastern states.
• It introduced the Mortgage Risk Guarantee Fund to facilitate credit flow to low-income urban dwellers.
• RAY was later subsumed into the In-Situ Slum Redevelopment component of Pradhan Mantri Awas Yojana – Urban in 2015.

Pradhan Mantri Awas Yojana – Urban (PMAY-U)

Mission Scope and Core Verticals (PMAY-U 1.0)

• Launched on June 25, 2015, with the objective of providing all-weather pucca houses to eligible urban households.
• The initial scheme covered four operational verticals: In-Situ Slum Redevelopment (ISSR), Credit Linked Subsidy Scheme (CLSS), Affordable Housing in Partnership (AHP), and Beneficiary-Led Individual House Construction (BLC).
• Houses are mandatory to be registered in the name of the adult female head of the family or in joint ownership with her spouse.

Technology Sub-Mission and Global Housing Technology Challenge

• The Technology Sub-Mission (TSM) was instituted to promote disaster-resistant, eco-friendly, and cost-effective construction methods.
• Six Light House Projects (LHPs) were constructed across six cities—Chennai, Rajkot, Indore, Lucknow, Agartala, and Ranchi—demonstrating innovative global technologies like monolithic concrete construction and precast components.

PMAY-U 2.0 Framework

• Approved in August 2024 with effect from September 1, 2024, targeting 1 crore urban poor and middle-class families over a five-year period.
• Operates with an investment outlay of 10 lakh crore rupees, including 2.30 lakh crore rupees in central assistance.
• Implemented through four revised verticals: Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and Interest Subsidy Scheme (ISS).
• Covers Economically Weaker Sections (income up to 3 lakh rupees), Low-Income Groups (3 to 6 lakh rupees), and Middle-Income Groups (6 to 9 lakh rupees).

Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

Mission Infrastructure Scope

• Launched on June 25, 2015, across 500 selected cities with a primary focus on establishing basic urban infrastructure.
• Focus areas include water supply, sewerage and septage management, storm water drainage, non-motorized urban transport, and green spaces or parks.
• The mission prioritizes universal coverage of piped water supply and sewerage connections to every urban household before funding secondary infrastructure.

AMRUT 2.0 Expansion

• Launched in October 2021 to extend water supply coverage to all statutory towns across India, targeting roughly 4,700 Urban Local Bodies.
• Aims to achieve 100% coverage of sewerage and septage management in the original 500 AMRUT cities.
• Promotes circular economy of water through recycled water usage, rejuvenation of water bodies, and city water balance plans.

Smart Cities Mission (SCM)

Core Strategy and Area-Based Development

• Launched on June 25, 2015, to drive economic growth and improve quality of life across 100 selected cities.
• Utilized a competitive selection process (“City Challenge”) where cities submitted proposal plans for central funding support.
• Implemented two main operational models: Area-Based Development (comprising retrofitting, redevelopment, or greenfield development) and Pan-City solutions.

Key Urban Components and Governance

• Pan-City components mandate the setup of Integrated Command and Control Centres (ICCC) to act as central nodes for city management, traffic control, and emergency services.
• Projects are executed through a dedicated Special Purpose Vehicle (SPV) established at the city level under the Companies Act, 2013, with equal equity shareholding from the State and the Urban Local Body.

Comparative Summary of Urban Schemes

Key Facts and Data Highlights

• Rajiv Awas Yojana pioneer-tested property rights for slum dwellers before its core mechanics were integrated into PMAY-U.
• Under PMAY-U, all dwelling units must include mandatory basic services such as drinking water, power, sanitation, and electricity connection.
• Light House Projects under PMAY-U used precast concrete, tunnel formwork, and steel structural systems to build houses in record time.
• PMAY-U 2.0 offers an interest subsidy of 4% on home loans up to 25 lakh rupees for eligible families with house value up to 35 lakh rupees.
• The Smart Cities Mission requires each participating city to create a Special Purpose Vehicle headed by a full-time Chief Executive Officer.
• AMRUT was the first central urban mission to tie financial assistance directly to specific urban governance reforms in local bodies.
• All 100 cities under the Smart Cities Mission established operational Integrated Command and Control Centres for real-time city management.
• PMAY-U 2.0 provides a Technology Innovation Grant to encourage green, disaster-resistant, and sustainable construction practices.