Lok Sabha Question No. 5062 (UNSTARRED), answered on 2026-03-24
Subject: Construction Cost under PMAY-G
Ministry: RURAL DEVELOPMENT
Asked by: Shri Rajmohan Unnithan

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO. 5062

## ANSWERED ON 24/03/2026

## CONSTRUCTION COST UNDER PMAY-G

## 5062. Shri Rajmohan Unnithan:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether over three crore houses have been constructed under Pradhan Mantri Awas Yojana-Gramin (PMAY-G), if so, the details thereof;
- (b) whether  the  Rs.  75,000  subsidy  adequately  reflects  higher construction costs in hilly and coastal terrains, if so, the details thereof;
- (c) whether the Government has reviewed the adequacy of PMAY unit  cost  in  States  with  hilly  and  coastal  terrains  where construction expenses are significantly higher, State-wise;
- (d) whether  representations  from  Kerala  regarding  revision  of central  assistance  have  been  examined,  if  so,  the  details thereof;
- (e) whether  the  surveys  of  beneficiary  satisfaction  has  been reviewed and indicated funding gaps; and
- (f) if  so,  the  steps  taken  or  proposed  to  ensure  affordable  and durable housing for the rural poor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (DR. CHANDRA SEKHAR PEMMASANI)

(a): In  order to achieve the objective of "Housing for All" in rural areas, the Ministry of Rural Development is implementing Pradhan Mantri  Awaas  Yojana-  Gramin  (PMAY-G)  with  effect  from  1st  April 2016 to provide assistance to 4.95 crore eligible rural households, with basic amenities, by March 2029. As on 19.03.2026, a cumulative target of 4.15 crore houses have been allotted to States/UTs out of which 3.91 crore houses have been sanctioned and 2.98 crore houses have been completed.

(b) to (f): Financial  assistance  under  PMAY-G  is  provided  at  unit assistance of Rs.1.20 lakh in plain areas and Rs.1.30 lakh in NorthEastern Region States and Hill States of Himachal  Pradesh, Uttarakhand,  Union  Territories  of  Jammu  &  Kashmir  and  Ladakh. Further, the cost of unit assistance is being shared between Central and State Governments in the ratio of 60:40 in plain areas and 90:10 for  North-Eastern  States,  2  Hill  States  (Himachal  Pradesh  and Uttarakhand) & UT of Jammu and Kashmir. In respect of other Union Territories, 100% cost is borne by the Government of India.

Under  the  PMAY-G,  in  addition  to  the  unit  assistance  the beneficiaries  are  facilitated  with  90/95  person  days  of  unskilled labour wages through mandatory convergence with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Support of  Rs.  12,000  for  construction  of  toilet  is  also  provided  through Swacch Bharat Mission - Gramin (SBM-G), MGNREGS or any other dedicated  source  of  funding.  The  PMAY-G  converges  with  various Government programmes to provide benefits of piped drinking water, electricity  connection,  LPG  gas  connection,  solar  lanterns  and cleaner cooking energy, solar roof top etc. to the beneficiaries. In this regard, the Union Cabinet had approved the implementation of the PMAY-G during FY 2024-25 to 2028-29 with existing unit assistance for construction of 2 crore additional houses. There is no proposal, at present, to revise the unit cost.

A  proposal  was  submitted  by  the  Local  Self  Government Department, Government of Kerala for revising the unit cost provided under  the  PMAY-G  to  Rs.  4  lakh.  These  and  other  suggestions  for revising the unit cost were examined in the Ministry. In this regard, the Union Cabinet had approved the implementation of the PMAY-G during  FY  2024-25  to  2028-29  with  existing  unit  assistance  for construction  of  2  crore  additional  houses.  The  Ministry  of  Rural Development  had communicated the modifications in the scheme for implementation of the next phase of the PMAY-G (2024-25 to 202829) as approved by the Union Cabinet, including the unit assistance under the scheme to all States/UTs vide letter dated 14 August, 2024.

The PMAY-G has had a significant positive impact on rural India by improving access to affordable housing and had played a key role in  transforming  the  rural  housing  landscape,  reducing  poverty, improving  living  standards,  and  fostering  social  and  economic development in rural India.   The  PMAY-G has  also  been  evaluated through various Independent institutes such as National Institute of Public  Finance  and  Policy,  NITI  Aayog,  National  Institute  of  Rural

Development & Panchayati Raj, etc. The details of studies conducted for evaluation of the scheme are as under :-

I.  'Evaluation  of Governance Parameters of Pradhan Mantri Awaas Yojana - Gramin' by National Institute of Public Finance and Policy (NIPFP)

A three phased study on "Evaluation of Governance Parameters of Pradhan  Mantri  Awaas Yojana  -  Gramin"  was  conducted  by  NIPFP which also included impact assessment of Direct Benefit Transfer in reduction of leakages. The main findings of the evaluation report are as under:

- i. Average number of days taken for completion of PMAY-G houses was 314 days which is reduced to 114 days in 2017-18.
- ii. Increased  demand  for  the  construction-related  materials  has generated additional jobs in the economy.
- iii. There is a significant increase in the mean expenditures which is mostly driven by an increased expenditure on food items postPMAY-G as compared to the pre-PMAY-G house indicating an improved living standard.
- iv. A  considerable  reduction  in  open  defecation  post-PMAY-G house has been observed due to construction of toilets leading to improved health status of the PMAY-G household members.
- v. There has been a significant increase in the use of LPG gas among PMAY-G households.

## II.  'Impact  Assessment  of  PMAY-G'  by  National  Institute  of  Rural Development and Panchayati Raj

The study was conducted by NIRD to assess to what extent were the  program  objectives  met  with  regard  to  improving  the  physical socio-economic improvements experienced by the target population, as a result of owning a new house. The main findings of the evaluation report are conditions of the target population; and as under:

- i. PMAY-G house has decreased the burden of house
2. maintenance.
- ii. PMAY-G has made significant impact on the lives of beneficiaries - both in terms of physical facilities provided and subject well-being.
- iii. PMAY-G  have slightly reduced congestion in houses by providing two or more rooms.
- iv. On  indicators  such  as  social  status,  self-worth,  confidence level,  feeling  of  ownership,  feeling  of  safety  &  security,  selfperceived  improvement  in  health,  overall  quality  of  life,  and satisfaction  about  the  new  house,  PMAY-G  beneficiaries  feel

much better, compared to the beneficiaries who are waitlisted under PMAY-G i.e. the beneficiaries who have not yet received the PMAY-G house.

III.  NITI  Aayog  -  'Evaluation  of  CSS  Scheme  -  Rural  Development Sector' in respect of PMAY-G - 2020-21:

Under the evaluation study sponsored by Development Monitoring and Evaluation Office (DMEO) of NITI Aayog, the main findings are as under:

- i. Ease of living of beneficiaries is enhanced due to construction of the house. It has led improvements in standard of living with construction of house.
- ii. PMAY-G has been able to ensure efficient use of technology for smooth  implementation  of  scheme.  Geo-tagging  of  houses, house  quality  review  module,  tech-savvy  financial  modules leverage quite well on technology.
- iii. Gender Mainstreaming is actively encouraged under PMAY-G. Providing house in the name of female beneficiaries, allocation of house to transgender people, capacity building of women to become Awaas Mitras contribute towards gender mainstreaming within the scheme.
- iv. Satisfaction  of  beneficiaries  towards  the  application  process was positive, with significant assistance and support provided.

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