PMAY-U 2.0 Scheme

Context

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 scheme, a significant step towards addressing the housing needs of urban poor and middle-class families in India. This second phase of the PMAY-U aims to provide financial assistance to one crore households over the next five years, ensuring that every citizen has access to affordable and quality housing.

Key Highlights of PMAY-U 2.0

• Financial assistance of ₹2.30 lakh crore will be provided to one crore urban poor and middle-class families through states and Union Territories.
• Beneficiaries can use this assistance to construct, purchase, or rent a house at an affordable cost in urban areas over the next five years.
• The scheme will address the housing needs of one crore families with a total investment of ₹10 lakh crore, improving the quality of life for all citizens.

Eligibility Criteria

Under PMAY-U 2.0, families belonging to the following income groups are eligible for assistance:

• Economically Weaker Sections (EWS): Annual income up to ₹3 lakh
• Low Income Group (LIG): Annual income from ₹3 lakh up to ₹6 lakh
• Middle Income Group (MIG): Annual income from ₹6 lakh up to ₹9 lakh

Beneficiaries must not own a pucca house anywhere in the country to be eligible for the scheme.

Interest Subsidy Scheme

• The government will provide interest subsidies on home loans for EWS, LIG, and MIG families under PMAY-U 2.0. 
• Beneficiaries taking a loan up to ₹25 lakh for a house valued up to ₹35 lakh will be eligible for a 4% interest subsidy on the first ₹8 lakh of the loan for up to 12 years. 
• This will result in a maximum subsidy of ₹1.80 lakh per beneficiary, which will be disbursed in five yearly installments through push button technology.

Affordable Housing in Partnership (AHP)

• Under the AHP segment of PMAY-Urban, financial assistance will be provided to EWS beneficiaries for owning houses built under various partnerships between states, UTs, and cities. 
• Redeemable housing vouchers will be given to beneficiaries who purchase houses from private projects that have been whitelisted by states/UTs/ULBs based on compliance with necessary norms.
• An additional grant in the form of a Technology Innovation Grant (TIG) of ₹1000 per square meter/unit will be provided to AHP projects using innovative construction technologies.

Affordable Rental Housing (ARH)

• PMAY-U 2.0 also includes the Affordable Rental Housing (ARH) vertical, which aims to create adequate rental housing for working women, industrial workers, urban migrants, homeless individuals, students, and other eligible beneficiaries. 
• The ARH will ensure affordable and hygienic living spaces for urban dwellers who do not want to own a house but require short-term housing or lack the financial capability to construct or buy a house.

Progress under PMAY-U Phase 1

• In the first phase of PMAY-U, 1.18 crore houses have been sanctioned, and more than 85.5 lakh houses have already been constructed and delivered to beneficiaries. 
• The scheme has made significant strides in providing all-weather pucca houses to eligible candidates in urban areas.

Pradhan Mantri Awas Yojana-Gramin (PMAY-G)

• In addition to PMAY-U 2.0, the Cabinet has also approved the implementation of PMAY-Gramin (PMAY-G) during the financial years 2024-25 to 2028-29. 
• Under this scheme, financial assistance will be provided for the construction of two crore additional houses in rural areas at the existing unit assistance of ₹1.20 lakh in plain areas and ₹1.30 lakh in North Eastern Region States and of Himachal Pradesh, Uttarakhand, and Union Territories of Jammu and Kashmir and Hill States Ladakh.
• This approval will ensure the completion of the remaining 35 lakh houses not completed by March 31, 2024, to achieve the cumulative target of 2.95 crore houses from the previous phase.
• The construction of two crore more houses under PMAY-G is expected to benefit nearly 10 crore individuals over the next five years.

Conclusion

The approval of PMAY-U 2.0 and the continued implementation of PMAY-G demonstrate the government’s commitment to providing affordable and quality housing for all. By targeting the housing needs of one crore urban families and two crore rural households, these schemes aim to improve the living standards and quality of life for millions of Indians. The significant financial investment of ₹2.30 lakh crore for PMAY-U 2.0 and the continued support for PMAY-G underscore the importance of these programs in addressing the housing challenges faced by the urban poor, middle-class, and rural populations. As these schemes progress, it is crucial to ensure effective implementation, timely delivery of houses, and the utilization of innovative construction technologies to maximize their impact and create a more inclusive and equitable society.

Source: The Hindu

UPSC Prelims Practice Question

Q. What is the maximum interest subsidy provided under the Interest Subsidy Scheme of PMAY-U 2.0?

a) 2% on the first ₹6 lakh of the loan
b) 3% on the first ₹8 lakh of the loan
c) 4% on the first ₹8 lakh of the loan
d) 5% on the first ₹10 lakh of the loan

Ans- “c”

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