Pradhan Mantri Awas Yojana – Urban

The Union Cabinet has approved continuation of Pradhan Mantri Awas Yojana-Urban (PMAY-U) – Housing for All Mission up to 31st December 2024.

Details –

• Financial assistance is being provided for the completion of already sanctioned over 122 lakh houses till 31st March 2022.
• The scheme is one of the major flagship programmes being implemented by Central Government to provide all-weather pucca houses to all eligible beneficiaries in the urban areas of the country through States, Union Territories, and Central Nodal Agencies.
• The continuation of the scheme based on the request of States and UTs upto 31st December 2024 will help in completion of already sanctioned houses under Beneficiary Led Construction, Affordable Housing in Partnership, and In-situ Slum Redevelopment verticals.
• Central Assistance approved since 2015 is two lakh three thousand crore rupees against 20 thousand crore rupees in 2004-2014.

About Pradhan Mantri Awas Yojana (Urban) –

• It envisions Housing for All by 2022 and it subsumed Rajiv Awas Yojana and Rajiv Rinn Yojana.
• It seeks to address the housing requirement of urban poor including slum dwellers through following programmes –
  • Central assistance to Urban Local Bodies (ULBs) and other implementing agencies for Slum rehabilitation with participation of private developers.
  • Promotion of Affordable Housing for weaker section through Credit Linked Subsidy.
  • Affordable Housing in Partnership with Public & Private sectors.
  • Subsidy for beneficiary-led individual house construction.
• It covers all 4041 statutory towns as per Census 2011 with focus on 500 Class I cities in three phases.
• Centre and state will be funding in the ratio of 75:25 and in case of North Eastern and special category States in the ratio of 90:10.
• Beneficiaries – Urban poor who does not own a pucca house, Economically Weaker Section (EWS) and Lower Income Groups (LIG – eligible only for credit linked subsidy scheme).
• States/UTs have flexibility to redefine the annual income criteria with the approval of Ministry.
• Under the mission, a beneficiary can avail of benefit of one component only.
• HUDCO and National Housing Bank have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions.
• Credit Linked Subsidy – It is an interest subsidy available to a loan amounts upto Rs 6 lakhs at the rate of 6.5% for tenure of 20 years or during tenure of loan whichever is lower.
• The houses will be allocated preferably in the name of Women in the family.

Note – The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) to be called CLSS for MIG I and MIG II, which was initially approved for implementation for the year 2017 has been extended up to March 2020. However, the government on May 14, 2020, announced the extension of the deadline for the affordable housing CLSS scheme for one year, that is, till March 2021.

The new category MIG, introduced recently, will further comprise of two slabs. The Middle Income Group (MIG) – I will comprise of households having an annual income between Rs 6,00,001 up to Rs 12,00,000. 

And, the Middle Income Group (MIG) – II will comprise of households having an annual income between Rs.12,00,001 up to Rs.18,00,000. So, effectively anyone earning between Rs 6 lakh and Rs 18 lakh per annum can avail the benefits of subsidised loans provided other conditions are met.