Cabinet approves Pradhan Mantri Awas Yojana-Urban 2.0 Scheme

Published By : Admin | August 9, 2024 | 22:22 IST
Cabinet approves Pradhan Mantri Awas Yojana-Urban 2.0 Scheme
1 crore houses to be constructed for urban poor and middle-class families
Investment of ₹ 10 lakh crore and Government Subsidy of 2.30 lakh crore under PMAY-U 2.0

The Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi, today approved Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0under which financial assistance will be provided to 1 crore urban poor and middle-class families through States/Union Territories (UTs)/PLIs to construct, purchase or rent a house at an affordable cost in urban areas in 5 years. The Government Assistance of ₹ 2.30 lakh crore will be provided under the Scheme.

PMAY-U is one of the major flagship programmes being implemented by Government of India to provide all-weather pucca houses to all eligible beneficiaries in the urban areas. Under PMAY-U, 1.18 crore houses have been sanctioned while more than 85.5 lakh houses have already been constructed and delivered to the beneficiaries.

Hon’ble Prime Minister in his Independence Day speech on 15th August 2023 from the ramparts of Red Fort had announced that Government of India will come up with a new scheme for the coming years to provide benefit to weaker section and middle-class families in owning a house.

The Union Cabinet on 10thJune 2024 resolved to provide assistance to 3 crore additional rural and urban households for the construction of houses, to meet the housing requirements arising out of the increase in the number of eligible families.In pursuance of the Hon’ble 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.

In addition, the corpus fund of Credit Risk Guarantee Fund Trust (CRGFT) has been increased from ₹1,000 crore to ₹3,000 crore to provide benefit of credit risk guarantee on affordable housing loans from Banks/Housing Finance Companies (HFCs)/Primary Lending Institutions (PLIs) to Economically Weaker Section (EWS)/Low Income Group(LIG) segments for construction/purchase of their first home. Further Management of Credit Risk Guarantee Fund will be transferred to National Credit Guarantee Company (NCGTC) from National Housing Bank (NHB). Credit Risk Guarantee Fund Scheme is being restructured and modified guidelines will be issued by Ministry of Housing & Urban Affairs (MoHUA).

PMAY-U 2.0 Eligibility Criteria

Families belonging to EWS/LIG/Middle Income Group (MIG) segments having no pucca house anywhere in the country are eligible to purchase or construct a house under PMAY-U 2.0.

  • 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.

Coverage of the Scheme

All statutory towns as per Census 2011 and towns notified subsequently, including Notified Planning Areas, Areas falling within Notified Planning/Development area under the jurisdiction of Industrial Development Authority/Special Area Development Authority/Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations shall also be included for the coverage under PMAY-U 2.0.

PMAY-U 2.0 components

The Scheme seeks to address the affordable housing requirement in urban areas through following verticals:

  1. Beneficiary-Led Construction (BLC): Under this vertical, financial assistance will be provided to individual eligible families belonging to EWS categories to construct new houses on their own available vacant land. In case of landless beneficiaries, land rights (pattas)may be provided by States/UTs.

 

  1. Affordable Housing in Partnership (AHP): Under AHP, financial assistance will be provided to EWS beneficiaries for owning houses being built with different partnerships by States/UTs/ Cities/Public/Private agencies.

 

  • 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

 

  1. Affordable Rental Housing (ARH): This vertical will create adequate rental housing for working women/industrial workers/ urban migrants/homeless/destitute /studentsand 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.

 

This vertical will be implemented through two models as under:

  • Model-1: Utilizing existing Government funded vacant houses in cities by converting them into ARH under Public Private Partnership mode or by public agencies.

  • Model-2: Construct, Operate and Maintain rental housing by Private/Public agencies

For projects constructed using innovative technologies, TIG at the rate of ₹3,000 per sqm shall be released by Central Government while State/UT Government shall provide ₹2000/ per sqm as part of State Share.

iv. Interest Subsidy Scheme (ISS): The ISS vertical will provide benefits of subsidy on home loans for EWS/LIG and MIG families. Beneficiaries taking loan up to ₹25 lakh with house value up to 35 lakh will be eligible for 4 percent interest subsidy on first ₹8 lakh loan up to 12 years tenure. A maximum of ₹1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalmentsthrough push button. Beneficiaries can access their accounts through website, OTP or smart cards.

PMAY-U 2.0 will be implemented as Centrally Sponsored Scheme (CSS), except for the Interest Subsidy Scheme (ISS) component, which will be implemented as Central Sector Scheme.

Funding Mechanism

The cost of house construction under different verticals, except for ISS, shall be shared among Ministry, State/UT/ULB and identified eligible beneficiaries.TheGovernment Assistance in AHP/BLC verticals under PMAY-U 2.0 will be ₹2.50 lakh per unit. State/UT share shall be mandatory under the Scheme. For UTs without legislature, Central: State sharing pattern will be 100:0, For UTs with legislature (UT of Delhi, J&K and Puducherry), North-Eastern States and Himalayan States (Himachal Pradesh and Uttarakhand) sharing pattern will be 90:10 and for other states sharing pattern will be 60:40.  To improve affordability of houses, States/UTs and ULBs may give additional assistance to beneficiaries.

Under ISS vertical, Central Assistance up to ₹1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalments

 Detailed sharing patten is as below.

S. No.

 

States/UTs

PMAY-U 2.0 Verticals

BLC & AHP

ARH

ISS

  1.  

North-Eastern Region States, Himachal Pradesh, Uttarakhand and Union Territory (UT) of J&K, Puducherry and Delhi

Central Govt.- ₹2.25 lakh per unit

State Govt.- Min. ₹0.25 lakh per unit

 

Technology Innovation Grant

 

GoI: ₹3,000/Sqm per unit

 

State Share: ₹2,000/Sqm per unit

Home Loan Subsidy – up to ₹1.80 lakh (Actual Release) per unit by Government of India as Central Sector Scheme

 

  1.  

All other UTs

Central Govt. - ₹2.50 lakh per unit

  1.  

Remaining States

Central Govt. - ₹1.50 lakh per unit

State Govt.- Min. ₹1.00 lakh per unit

Notes:

  1. State/UT share shall be mandatory under PMAY-U 2.0.  Apart from the minimum State Share, the State Governments may also provide additional top-up share to increase the affordability.

  2. In addition to Central Assistance, MoHUA will provide Technology Innovation Grant (TIG) only to the AHP projects using innovative building materials, technologies & processes @ ₹1,000 per sqm upto 30 sqm per dwelling unit to the implementing agencies to offset the impact of any additional cost implication under AHP projects. 

 

Technology & Innovation Sub-Mission (TISM)

TISM will be set up under PMAY-U 2.0 to guide and facilitate States/UTs and other stakeholdersin adoption of modern, innovative and green technologies and building material for faster and quality construction of houses. Under TISM, States/UTs/Cities will be assisted through innovative practices and projects in challenge mode focused on disaster resistant and environment friendly technologies for climate smart buildings and resilient housing.

Affordable Housing Policy

In order to seek benefit under PMAY-U 2.0, States/UTs will have to formulate “Affordable Housing Policy” containing various reforms and incentives for ensuring active participation of Public/Private entities and promote Affordable Housing Ecosystem. ‘Affordable Housing Policy’ will include such reforms which will improve the affordability of ‘Affordable Housing’.

Impact:

PMAY-U 2.0 will achieve the vision of ‘Housing for All’ by fulfilling the housing dreams of EWS/LIG and MIG segments. The Scheme will also ensure equity across different segments of population by addressing the requirement of slum dwellers, SC/STs, minorities, widows, Persons with Disabilities and other underprivileged sections of the society. Special focus will be given to Safai Karmi, street vendors identified under PMSVANidhi Scheme and different artisans under Pradhan Mantri-Vishwakarma Scheme, anganwadi workers, building and other construction workers, residents of slums/chawls and other groups identified during operation of PMAY-U 2.0.

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Namaskar!

My cabinet colleagues, other dignitaries from across the country, and my young friends!

I returned from Kuwait late last night. There, I had an extensive meeting with Indian youth and professionals, engaging in meaningful discussions. Now, upon my return, my very first programme is with the youth of our nation—a delightful coincidence indeed. Today marks a significant milestone for thousands of young individuals like you. A new chapter in your lives is unfolding. Your years of dreams have come to fruition, and your relentless efforts have borne fruit. This passing year of 2024 is leaving you and your families with newfound joy. I extend my heartfelt congratulations to each of you and your families on this remarkable achievement.

Friends,

Maximising the potential and talent of Bharat's youth remains the foremost priority of our government. We have been steadfastly working towards this goal through initiatives like Rozgar Melas (job fairs). Over the past decade, a comprehensive campaign to provide government jobs has been underway across various ministries, departments, and institutions. Even today, more than 71,000 young individuals have been handed appointment letters. In the last one and a half years alone, our government has provided permanent government jobs to nearly 10 lakh youth—a record in itself. Such a mission-driven approach to offering permanent employment within the Government has never been witnessed under any previous administration. Moreover, these opportunities are being provided with absolute honesty and transparency. I take pride in the fact that young individuals, nurtured in this transparent tradition, are serving the nation with utmost dedication and integrity.

Friends,

The progress of any nation is intrinsically linked to the efforts, capabilities, and leadership of its youth. Bharat has resolved to emerge as a developed nation by 2047, and we firmly believe in this aspiration. Our confidence stems from the fact that Bharat's talented youth are at the heart of every policy and decision. Over the past decade, initiatives such as Make in India, Atmanirbhar Bharat Abhiyan, Startup India, Stand Up India, and Digital India have all been crafted with the youth as their focal point. Bharat has reformed policies in sectors like space and defence manufacturing, empowering its youth to take full advantage of these opportunities. Today, Bharat's youth radiate confidence, excelling in every domain. We have ascended to become the world’s fifth-largest economy and boast the third-largest startup ecosystem globally. When a young individual embarks on a startup journey today, a robust ecosystem supports them. Similarly, when a youth envisions a career in sports, they can do so with unwavering confidence without the fear of failing. Modern facilities, ranging from training to competitive tournaments, are being established to ensure success. Across various sectors, we are witnessing a remarkable transformation. Bharat is now the world’s second-largest mobile manufacturer. From renewable energy to organic farming, from the space sector to defence, and from tourism to wellness, the nation is scaling new heights and creating unprecedented opportunities.

Friends,

We must cultivate the talents of our youth to propel the nation forward, a responsibility that rests largely with our education system. For decades, the nation has felt the need for a modern educational framework to build a new Bharat. With the National Education Policy, we have embarked on this transformative journey. The education system, which once constrained students with its rigidity, now offers them a wealth of new opportunities. Initiatives like Atal Tinkering Labs and modern PM-SHRI schools are fostering an innovative mindset from an early age. Previously, language posed a significant barrier for rural, Dalit, backward, and tribal youth. To address this, we introduced policies enabling education and examinations in regional languages. Today, our government allows recruitment examinations to be conducted in 13 different languages. Additionally, to empower the youth in border districts, we have increased their recruitment quotas and initiated special recruitment drives. As a result, more than 50,000 young individuals have received appointment letters for positions in the Central Armed Police Forces. I extend my heartfelt congratulations to all these young people.

Friends,

Today also marks the birth anniversary of Chaudhary Charan Singh ji. Our government is privileged to have conferred the Bharat Ratna upon Chaudhary Sahab this year. I pay my respectful tribute to him. We celebrate this day as Kisan Diwas or National Farmer's Day, and on this occasion, I salute all the farmers of our nation, our food providers.

Friends,

Chaudhary Sahab often remarked that Bharat would advance only if its rural areas flourished. Today, our government’s policies and decisions are creating new employment and self-employment opportunities in rural Bharat. A substantial number of young people have found meaningful employment in the agricultural sector, engaging in work that aligns with their aspirations. Under the Gobardhan Yojana, the construction of hundreds of biogas plants has not only generated electricity but also provided jobs to thousands of youth. The integration of hundreds of agricultural markets into the e-NAM Yojana has opened numerous employment avenues. Similarly, the government’s decision to increase ethanol blending to 20 per cent has not only benefited farmers but also created jobs in the sugar sector. By establishing nearly 9,000 Farmer Producer Organisations (FPOs), we have enabled farmers to access new markets while creating employment in rural areas. Today, the government is implementing the world’s largest food storage scheme, building thousands of warehouses. This initiative is poised to generate significant employment and self-employment opportunities. Recently, the government launched the Bima Sakhi Yojana with the aim of providing insurance coverage to every citizen in the country. This programme will also create numerous job opportunities in rural regions. Whether through the Drone Didi Abhiyan, Lakhpati Didi Abhiyan, or the Bank Sakhi Yojana, all these initiatives are driving new employment opportunities in agriculture and rural areas.

Friends,

Today, thousands of young women have been given appointment letters. Your success will serve as an inspiration for countless other women. We are committed to empowering women in every sphere of life. Our decision to grant 26 weeks of maternity leave has safeguarded the careers of lakhs of women, ensuring that their aspirations remain intact. Our government has worked tirelessly to eliminate every obstacle hindering the progress of women. For years after independence, many girls were compelled to abandon their education due to the absence of separate toilets in schools. We addressed this issue through the Swachh Bharat Abhiyan. The Sukanya Samriddhi Yojana has ensured that financial constraints no longer obstruct girls' education. Our government opened Jan Dhan accounts for 30 crore women, enabling them to receive direct benefits from government schemes. Women have also gained access to collateral-free loans under the Mudra Yojana. In the past, women often managed entire households, yet property ownership was rarely in their names. Today, the majority of homes provided under the Pradhan Mantri Awas Yojana are registered in women’s names. Initiatives such as Poshan Abhiyan, Surakshit Matritva Abhiyan, and Ayushman Bharat have significantly improved women’s access to healthcare. Through the Nari Shakti Vandan Act, women have secured reservations in the Vidhan Sabha and Lok Sabha. Our society and country are rapidly advancing towards women-led development.

Friends,

The young professionals receiving appointment letters today will become part of a modernised government system. Over the last 10 years, the outdated image of government offices and their functioning has been transformed. Today, we witness increased efficiency and productivity among government employees, a success achieved through their dedication and hard work. You have reached this milestone due to your eagerness to learn and your determination to excel. Maintain this same enthusiasm throughout your career. The iGOT Karmayogi platform will support your continuous learning journey. It offers over 1,600 diverse courses, enabling you to gain knowledge on various subjects effectively and within a short timeframe. You are young and represent the strength of our nation. There is no goal that our youth cannot accomplish. Begin this new chapter with renewed energy and purpose. Once again, I extend my heartfelt congratulations to all the youngsters who have received appointment letters today. My best wishes for a bright and successful future.

Thank you very much.