The Union Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 under which financial assistance will be provided to one crore urban poor and middle-class families through states and Union Territories to construct, purchase, or rent a house at an affordable cost in urban areas in five years.
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.
The PMAY-U is one of the major flagship programmes of the Central government which is aimed at providing all-weather ‘pucca’ houses to all eligible candidates in the urban areas.
“In pursuance of the Prime Minister’s vision, PMAY-U 2.0, with an investment of ₹10 lakh crore, will address the housing needs of one crore families, ensuring that every citizen leads a better quality of life,” the government in a statement said.
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.
Under the Interest Subsidy Scheme, the government will give subsidy on home loans for EWS, LIG, and MIG families.
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, according to the scheme.
“A maximum of ₹1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalments through push button. Beneficiaries can access their accounts through website, OTP or smart cards,” the statement read.
Under the Affordable Housing in Partnership (AHP) segment of the PMAY-Urban, financial assistance will be provided 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.
“States/UTs/ULB shall whitelist the private sector projects complying with all the necessary norms. An additional Grant in the form of Technology Innovation Grant (TIG) @ ₹1000 per sqm/unit shall be provided to AHP Projects using innovative construction technologies,” the statement said.
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About the Affordable Rental Housing (ARH), the government said that this 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,” it said.