Pradhan Mantri Awas Yojana: Objectives and Implementation

Pradhan Mantri Awas Yojana (PMAY) is the Government of India’s flagship housing programme aimed at providing pucca houses with basic amenities to eligible rural and urban households. It has two main components: PMAY-Gramin (PMAY-G) and PMAY-Urban (PMAY-U).

The scheme focuses on housing support, subsidy assistance, and convergence with other welfare programmes so that beneficiaries can get not only a house but also sanitation and livelihood-related support where applicable.

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

• Implementation period: Approved on August 9, 2024, PMAY-U 2.0 covers five financial years from 2024-25 to 2028-29.
• Objective: It seeks to reduce housing shortages among urban poor and middle-class families.
• Coverage target: The phase aims to assist 1 crore families.
• Financial support: The scheme is backed by a central subsidy of ₹2.30 lakh crore and an estimated total investment of ₹10 lakh crore.
• Administrative structure: The Central Sanctioning and Monitoring Committee (CSMC) is chaired by the Secretary of the Department of Urban Development under the Ministry of Housing and Urban Affairs (MoHUA).
• Income eligibility: EWS households have annual income up to ₹3 lakh, LIG households ₹3 lakh to ₹6 lakh, and MIG households ₹6 lakh to ₹9 lakh.

Operational Verticals and Credit Support

• Beneficiary Led Construction (BLC): Eligible EWS families can receive assistance of up to ₹2.5 lakh to construct a pucca house on self-owned land.
• Affordable Housing in Partnership (AHP): This vertical supports housing projects developed in partnership with public or private entities.
• Affordable Rental Housing (ARH): It addresses housing needs of urban households through rental housing options.
• Interest Subsidy Scheme (ISS): This provides interest subsidy support on housing loans for eligible beneficiaries.
• Credit guarantee support: The corpus fund of the Credit Risk Guarantee Fund Trust (CRGFT) has been raised from ₹1,000 crore to ₹3,000 crore to support affordable housing loans for EWS and LIG segments.
• Institutional change: Management of the CRGFT has been transferred from the National Housing Bank (NHB) to the National Credit Guarantee Company (NCGTC).

Pradhan Mantri Awas Yojana – Gramin (PMAY-G)

• Target period: PMAY-G continues from FY 2024-25 to 2028-29, with an implementation deadline of March 31, 2029.
• Housing target: The rural phase aims to construct 2 crore additional houses.
• Total outlay: The budget is ₹3,06,137 crore, including a Central Share of ₹2,05,856 crore and a State Matching Share of ₹1,00,281 crore.
• Unit assistance: Eligible families get ₹1.20 lakh in plain areas and ₹1.30 lakh in North Eastern and Himalayan states.
• Covered states/UTs: The higher assistance applies to Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Ladakh, besides other North Eastern and Himalayan states.
• Cost-sharing pattern: The ratio is 60:40 for general states, 90:10 for North Eastern and Himalayan states, and 100% central funding for Union Territories without a legislature.

Implementation Mechanics of PMAY-G

• Beneficiary identification: Households are identified through the Socio-Economic Caste Census (SECC) 2011 and the Awaas+ database.
• Updated survey: The Awaas+ 2024 survey was launched in September 2024 to update the beneficiary database.
• Wage convergence: Beneficiaries receive 90 to 95 man-days of unskilled wage support through convergence with the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
• Toilet support: An additional ₹12,000 is provided for toilet construction through convergence with Swachh Bharat Mission-Gramin (SBM-G) or MGNREGS.
• Progress status: Cumulative completions under PMAY-G have crossed 3.15 crore houses out of more than 3.91 crore sanctioned houses.
• Revised target: The scheme is moving towards a revised cumulative target of 4.95 crore rural homes by 2029.

Comparison of Key Scheme Parameters

Key Prelims Takeaways

• Two components: PMAY operates through PMAY-G for rural areas and PMAY-U for urban areas.
• PMAY-U 2.0 period: The urban phase runs from 2024-25 to 2028-29.
• Urban target: PMAY-U 2.0 aims to assist 1 crore families.
• Income slabs: EWS, LIG and MIG eligibility under PMAY-U 2.0 are based on annual household income.
• PMAY-G target: The rural phase aims to build 2 crore additional houses by March 31, 2029.
• Rural support: PMAY-G includes wage convergence with MGNREGS and toilet assistance through SBM-G or MGNREGS.
• Credit guarantee: CRGFT corpus has been enhanced to ₹3,000 crore and shifted to NCGTC management.