The Union Cabinet, led by Prime Minister Narendra Modi, has approved the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0). The scheme aims to construct 1 crore houses for urban poor and middle-class families over the next five years, with an investment of ₹10 lakh crore. The government will provide ₹2.30 lakh crore in subsidies. This initiative supports the “Housing for All” vision, focusing on affordable housing, rental options, and financial assistance for home loans.
The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0). This major housing initiative will see the construction of 1 crore houses for urban poor and middle-class families over the next five years. The scheme is part of the government’s larger goal of “Housing for All” and aims to improve the living conditions of millions of Indians.
With an investment of ₹10 lakh crore, the scheme will provide substantial financial support. The government has allocated ₹2.30 lakh crore in subsidies to help families build, buy, or rent affordable homes in urban areas. The scheme will be implemented in partnership with states, union territories, and private entities.
PMAY-U 2.0 will cater to families from Economically Weaker Sections (EWS), Low Income Groups (LIG), and Middle Income Groups (MIG). Eligible families include those who do not own a pucca house anywhere in India. Specific income criteria have been set: EWS households earn up to ₹3 lakh annually, LIG households earn between ₹3 lakh and ₹6 lakh, and MIG households earn between ₹6 lakh and ₹9 lakh.
The scheme includes various components to address different housing needs:
- Beneficiary-Led Construction (BLC): Financial aid for EWS families to build new houses on their own land.
- Affordable Housing in Partnership (AHP): Support for building homes through partnerships involving public and private sectors.
- Affordable Rental Housing (ARH): Creation of rental housing for those needing short-term accommodation, such as workers and students.
- Interest Subsidy Scheme (ISS): Subsidies on home loans for EWS, LIG, and MIG families, making loans more affordable.
The scheme also includes innovative measures like Technology Innovation Grants to encourage the use of modern construction techniques, ensuring faster and higher-quality housing.
In his Independence Day speech in 2023, Prime Minister Modi had announced the government’s commitment to expanding housing for all, particularly for weaker and middle-class families. PMAY-U 2.0 is a step towards realizing this vision, ensuring that every citizen can own a home and live with dignity.
