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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Text of PM Modi's address to the Indian Community in Guyana
November 22, 2024
The Indian diaspora in Guyana has made an impact across many sectors and contributed to Guyana’s development: PM
You can take an Indian out of India, but you cannot take India out of an Indian: PM
Three things, in particular, connect India and Guyana deeply,Culture, cuisine and cricket: PM
India's journey over the past decade has been one of scale, speed and sustainability: PM
India’s growth has not only been inspirational but also inclusive: PM
I always call our diaspora the Rashtradoots,They are Ambassadors of Indian culture and values: PM

Your Excellency President Irfan Ali,
Prime Minister Mark Philips,
Vice President Bharrat Jagdeo,
Former President Donald Ramotar,
Members of the Guyanese Cabinet,
Members of the Indo-Guyanese Community,

Ladies and Gentlemen,

Namaskar!

Seetaram !

I am delighted to be with all of you today.First of all, I want to thank President Irfan Ali for joining us.I am deeply touched by the love and affection given to me since my arrival.I thank President Ali for opening the doors of his home to me.

I thank his family for their warmth and kindness. The spirit of hospitality is at the heart of our culture. I could feel that, over the last two days. With President Ali and his grandmother, we also planted a tree. It is part of our initiative, "Ek Ped Maa Ke Naam", that is, "a tree for mother”. It was an emotional moment that I will always remember.

Friends,

I was deeply honoured to receive the ‘Order of Excellence’, the highest national award of Guyana. I thank the people of Guyana for this gesture. This is an honour of 1.4 billion Indians. It is the recognition of the 3 lakh strong Indo-Guyanese community and their contributions to the development of Guyana.

Friends,

I have great memories of visiting your wonderful country over two decades ago. At that time, I held no official position. I came to Guyana as a traveller, full of curiosity. Now, I have returned to this land of many rivers as the Prime Minister of India. A lot of things have changed between then and now. But the love and affection of my Guyanese brothers and sisters remains the same! My experience has reaffirmed - you can take an Indian out of India, but you cannot take India out of an Indian.

Friends,

Today, I visited the India Arrival Monument. It brings to life, the long and difficult journey of your ancestors nearly two centuries ago. They came from different parts of India. They brought with them different cultures, languages and traditions. Over time, they made this new land their home. Today, these languages, stories and traditions are part of the rich culture of Guyana.

I salute the spirit of the Indo-Guyanese community. You fought for freedom and democracy. You have worked to make Guyana one of the fastest growing economies. From humble beginnings you have risen to the top. Shri Cheddi Jagan used to say: "It matters not what a person is born, but who they choose to be.”He also lived these words. The son of a family of labourers, he went on to become a leader of global stature.

President Irfan Ali, Vice President Bharrat Jagdeo, former President Donald Ramotar, they are all Ambassadors of the Indo Guyanese community. Joseph Ruhomon, one of the earliest Indo-Guyanese intellectuals, Ramcharitar Lalla, one of the first Indo-Guyanese poets, Shana Yardan, the renowned woman poet, Many such Indo-Guyanese made an impact on academics and arts, music and medicine.

Friends,

Our commonalities provide a strong foundation to our friendship. Three things, in particular, connect India and Guyana deeply. Culture, cuisine and cricket! Just a couple of weeks ago, I am sure you all celebrated Diwali. And in a few months, when India celebrates Holi, Guyana will celebrate Phagwa.

This year, the Diwali was special as Ram Lalla returned to Ayodhya after 500 years. People in India remember that the holy water and shilas from Guyana were also sent to build the Ram Mandir in Ayodhya. Despite being oceans apart, your cultural connection with Mother India is strong.

I could feel this when I visited the Arya Samaj Monument and Saraswati Vidya Niketan School earlier today. Both India and Guyana are proud of our rich and diverse culture. We see diversity as something to be celebrated, not just accommodated. Our countries are showing how cultural diversity is our strength.

Friends,

Wherever people of India go, they take one important thing along with them. The food! The Indo-Guyanese community also has a unique food tradition which has both Indian and Guyanese elements. I am aware that Dhal Puri is popular here! The seven-curry meal that I had at President Ali’s home was delicious. It will remain a fond memory for me.

Friends,

The love for cricket also binds our nations strongly. It is not just a sport. It is a way of life, deeply embedded in our national identity. The Providence National Cricket Stadium in Guyana stands as a symbol of our friendship.

Kanhai, Kalicharan, Chanderpaul are all well-known names in India. Clive Lloyd and his team have been a favourite of many generations. Young players from this region also have a huge fan base in India. Some of these great cricketers are here with us today. Many of our cricket fans enjoyed the T-20 World Cup that you hosted this year.

Your cheers for the ‘Team in Blue’ at their match in Guyana could be heard even back home in India!

Friends,

This morning, I had the honour of addressing the Guyanese Parliament. Coming from the Mother of Democracy, I felt the spiritual connect with one of the most vibrant democracies in the Caribbean region. We have a shared history that binds us together. Common struggle against colonial rule, love for democratic values, And, respect for diversity.

We have a shared future that we want to create. Aspirations for growth and development, Commitment towards economy and ecology, And, belief in a just and inclusive world order.

Friends,

I know the people of Guyana are well-wishers of India. You would be closely watching the progress being made in India. India’s journey over the past decade has been one of scale, speed and sustainability.

In just 10 years, India has grown from the tenth largest economy to the fifth largest. And, soon, we will become the third-largest. Our youth have made us the third largest start-up ecosystem in the world. India is a global hub for e-commerce, AI, fintech, agriculture, technology and more.

We have reached Mars and the Moon. From highways to i-ways, airways to railways, we are building state of art infrastructure. We have a strong service sector. Now, we are also becoming stronger in manufacturing. India has become the second largest mobile manufacturer in the world.

Friends,

India’s growth has not only been inspirational but also inclusive. Our digital public infrastructure is empowering the poor. We opened over 500 million bank accounts for the people. We connected these bank accounts with digital identity and mobiles. Due to this, people receive assistance directly in their bank accounts. Ayushman Bharat is the world’s largest free health insurance scheme. It is benefiting over 500 million people.

We have built over 30 million homes for those in need. In just one decade, we have lifted 250 million people out of poverty. Even among the poor, our initiatives have benefited women the most. Millions of women are becoming grassroots entrepreneurs, generating jobs and opportunities.

Friends,

While all this massive growth was happening, we also focused on sustainability. In just a decade, our solar energy capacity grew 30-fold ! Can you imagine ?We have moved towards green mobility, with 20 percent ethanol blending in petrol.

At the international level too, we have played a central role in many initiatives to combat climate change. The International Solar Alliance, The Global Biofuels Alliance, The Coalition for Disaster Resilient Infrastructure, Many of these initiatives have a special focus on empowering the Global South.

We have also championed the International Big Cat Alliance. Guyana, with its majestic Jaguars, also stands to benefit from this.

Friends,

Last year, we had hosted President Irfaan Ali as the Chief Guest of the Pravasi Bhartiya Divas. We also received Prime Minister Mark Phillips and Vice President Bharrat Jagdeo in India. Together, we have worked to strengthen bilateral cooperation in many areas.

Today, we have agreed to widen the scope of our collaboration -from energy to enterprise,Ayurveda to agriculture, infrastructure to innovation, healthcare to human resources, anddata to development. Our partnership also holds significant value for the wider region. The second India-CARICOM summit held yesterday is testament to the same.

As members of the United Nations, we both believe in reformed multilateralism. As developing countries, we understand the power of the Global South. We seek strategic autonomy and support inclusive development. We prioritize sustainable development and climate justice. And, we continue to call for dialogue and diplomacy to address global crises.

Friends,

I always call our diaspora the Rashtradoots. An Ambassador is a Rajdoot, but for me you are all Rashtradoots. They are Ambassadors of Indian culture and values. It is said that no worldly pleasure can compare to the comfort of a mother’s lap.

You, the Indo-Guyanese community, are doubly blessed. You have Guyana as your motherland and Bharat Mata as your ancestral land. Today, when India is a land of opportunities, each one of you can play a bigger role in connecting our two countries.

Friends,

Bharat Ko Janiye Quiz has been launched. I call upon you to participate. Also encourage your friends from Guyana. It will be a good opportunity to understand India, its values, culture and diversity.

Friends,

Next year, from 13 January to 26 February, Maha Kumbh will be held at Prayagraj. I invite you to attend this gathering with families and friends. You can travel to Basti or Gonda, from where many of you came. You can also visit the Ram Temple at Ayodhya. There is another invite.

It is for the Pravasi Bharatiya Divas that will be held in Bhubaneshwar in January. If you come, you can also take the blessings of Mahaprabhu Jagannath in Puri. Now with so many events and invitations, I hope to see many of you in India soon. Once again, thank you all for the love and affection you have shown me.

Thank you.
Thank you very much.

And special thanks to my friend Ali. Thanks a lot.