Lok Sabha Question No. 4464 (UNSTARRED), answered on 2025-03-27
Subject: Funds Crunch in Construction of Houses under PMAY-U
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Dr. Ganapathy Rajkumar P

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4464

TO BE ANSWERED ON MARCH 27, 2025

## FUNDS CRUNCH IN CONSTRUCTION OF HOUSES UNDER PMAY-U

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to

- NO. 4464.  DR. GANAPATHY RAJKUMAR P: state:
- (a) whether many States are facing funds crunch for construction of houses under  Pradhan  Mantri  Awas  Yojana-Urban  (PMAY-U)  and  if  so,  the details thereof along with the reasons therefor;
- (b) whether the Government proposes to increase any subsidy under PMAYU in view of the increasing cost of raw materials and other products; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU)

- (a) to (c): Ministry of Housing and Urban Affairs (MoHUA) is implementing Pradhan Mantri Awas Yojana - Urban (PMAY-U) since 25.06.2015 to provide pucca house with basic amenities to eligible urban beneficiaries across the country. PMAY-U is a demand driven scheme. States/Union Territories (UTs) formulated project proposals as per their assessed demand of houses in a phased manner based on their resources. Such proposals are approved by the State Level Sanctioning and Monitoring Committee (SLSMC) headed by the  Chief  Secretary  of  States/UTs  for  further  consideration  of  release  of admissible  Central  Assistance  by  Central  Sanctioning  and  Monitoring Committee (CSMC). Based on the project proposals submitted by States/UTs,  as  on  17.03.2025,  a  total  of  118.64  lakh  houses  have  been sanctioned under the scheme, out of which 112.74 lakh have been grounded; of which 91.50 lakh are completed.

As per the Scheme Guidelines of PMAY-U, Central Assistance is released in  three  installments  in  40%,  40%  and  20%  to  the  States/UTs  for construction of houses based on compliances submitted by them. The Ministry has been consistently releasing the due installments on receipt of  compliances  received  from  the  States/UTs  for  early  completion  of houses.  Based  on  the  compliances  submitted,  Central  Assistance  of ₹1.68 lakh crore of has been released under PMAY-U to the States/UTs against which, Utilization Certifi cate of about ₹1.5 9 lakh crore has been received by the Ministry. The Ministry conducts regular review to monitor early utilization of the fund released and completion of houses under the scheme.

The scheme period of PMAY-U which was earlier up to 31.03.2022, has been  extended  till  31.12.2025  to  complete  the  sanctioned  houses without changing the funding pattern and implementation methodology.

Further,  based  on  the  learning  from  the  experiences  of  9  years implementation  of  PMAY-U,  MoHUA  has  revamped  the  scheme  and launched  PMAY-U  2.0  'Housing  for All' Mission with effect from 01.09.2024  for  implementation  in  urban  areas  across  the  country  to construct,  purchase  and  rent  a  house  by  1  crore  additional  eligible beneficiaries at affordable cost through four verticals i.e., Beneficiary Led  Construction  (BLC),  Affordable  Housing  in  Partnership  (AHP), Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS). The cost  of  house  construction  under  different  verticals  is  to  be  shared among Ministry, States/UTs/ULBs and identified eligible beneficiaries.

## The  vertical-wise  Central  Assistance  along  with  State/UT  share  is  as under:

| S. No.   | States/UTs                                                                                                                                                      | PMAY-U 2.0 Verticals                                                      | PMAY-U 2.0 Verticals                                                                  | PMAY-U 2.0 Verticals                                                                                           |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                 | BLC & AHP                                                                 | ARH                                                                                   | ISS                                                                                                            |
| 1.       | Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand, UTs of Jammu and Kashmir, 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 |
| 2.       | All other UTs                                                                                                                                                   | Central Govt. - ₹2.50 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 |
| 3.       | All other States                                                                                                                                                | Central Govt. - ₹1.50 lakh per unit State Govt.- Min. ₹1.00 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 |

The funding under PMAY-U 2.0 is to provide a nudge to the beneficiaries and enable them to construct/purchase their houses by arranging funds from other sources as well. Apart from the minimum State/UT share, the State/UT  Governments  may  provide  additional  top-up  share  to  increase affordability.

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