PMAY-U 2.0 Approved: Revolutionizing Urban Housing in India

Overview and Objectives of PMAY-U 2.0

• Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 approved by Union Cabinet on August 9, 2024
• Previously PMAY-U (2015-2024)
• Aims to provide housing for 1 crore urban poor and middle-class families
• Part of the "Housing for All" policy
• Five-year duration with ₹10 lakh crore total investment
• ₹2.30 lakh crore government subsidy

Eligibility Criteria and Beneficiary Categories

• Covers Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG)
• EWS: Annual income up to ₹3 lakh
• LIG: Annual income up to ₹6 lakh
• MIG: Annual income up to ₹9 lakh
• Beneficiaries must not own a permanent house anywhere in India
• Applicable in all towns listed in 2011 Census and urban planning areas

Components and Financial Assistance

• Beneficiary-Led Construction (BLC): Financial aid for EWS to build on own land
• Affordable Housing in Partnership (AHP): Support for EWS in partnership-built houses
• Affordable Rental Housing (ARH): Rental units for specific groups (e.g., workers, students)
• Interest subsidy: 4% on first ₹8 lakh of loans up to ₹25 lakh (house value up to ₹35 lakh)
• Maximum subsidy of ₹1.80 lakh in 5-yearly installments
• Credit Risk Guarantee Fund increased from ₹1,000 crore to ₹3,000 crore

Implementation and Technological Innovation

• Nodal ministry: Ministry of Housing and Urban Affairs
• Funding pattern: 60:40 (Centre:State), 90:10 for UTs with legislature, 100% Central for other UTs
• States/UTs required to formulate "Affordable Housing Policy" with specified reforms
• Technology & Innovation Sub-Mission (TISM) to promote modern, green technologies
• Focus on faster construction and disaster-resistant, climate-smart buildings