Cabinet approves Pradhan Mantri Awas Yojana-Urban 2.0 Scheme

Published By : Admin | August 9, 2024 | 22:22 IST
Cabinet approves Pradhan Mantri Awas Yojana-Urban 2.0 Scheme
1 crore houses to be constructed for urban poor and middle-class families
Investment of ₹ 10 lakh crore and Government Subsidy of 2.30 lakh crore under PMAY-U 2.0

The Union Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi, today approved Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0under which financial assistance will be provided to 1 crore urban poor and middle-class families through States/Union Territories (UTs)/PLIs to construct, purchase or rent a house at an affordable cost in urban areas in 5 years. The Government Assistance of ₹ 2.30 lakh crore will be provided under the Scheme.

PMAY-U is one of the major flagship programmes being implemented by Government of India to provide all-weather pucca houses to all eligible beneficiaries in the urban areas. Under PMAY-U, 1.18 crore houses have been sanctioned while more than 85.5 lakh houses have already been constructed and delivered to the beneficiaries.

Hon’ble Prime Minister in his Independence Day speech on 15th August 2023 from the ramparts of Red Fort had announced that Government of India will come up with a new scheme for the coming years to provide benefit to weaker section and middle-class families in owning a house.

The Union Cabinet on 10thJune 2024 resolved to provide assistance to 3 crore additional rural and urban households for the construction of houses, to meet the housing requirements arising out of the increase in the number of eligible families.In pursuance of the Hon’ble Prime Minister’s vision, PMAY-U 2.0, with an investment of ₹ 10 lakh crore, will address the housing needs of one crore families, ensuring that every citizen leads a better quality of life.

In addition, the corpus fund of Credit Risk Guarantee Fund Trust (CRGFT) has been increased from ₹1,000 crore to ₹3,000 crore to provide benefit of credit risk guarantee on affordable housing loans from Banks/Housing Finance Companies (HFCs)/Primary Lending Institutions (PLIs) to Economically Weaker Section (EWS)/Low Income Group(LIG) segments for construction/purchase of their first home. Further Management of Credit Risk Guarantee Fund will be transferred to National Credit Guarantee Company (NCGTC) from National Housing Bank (NHB). Credit Risk Guarantee Fund Scheme is being restructured and modified guidelines will be issued by Ministry of Housing & Urban Affairs (MoHUA).

PMAY-U 2.0 Eligibility Criteria

Families belonging to EWS/LIG/Middle Income Group (MIG) segments having no pucca house anywhere in the country are eligible to purchase or construct a house under PMAY-U 2.0.

  • EWS households are families with an annual income up to ₹3 lakh.

  • LIG households are families with an annual income from ₹3 lakh up to ₹6 lakh.

  • MIG households are families with an annual income from ₹6 lakh up to ₹9 lakh.

Coverage of the Scheme

All statutory towns as per Census 2011 and towns notified subsequently, including Notified Planning Areas, Areas falling within Notified Planning/Development area under the jurisdiction of Industrial Development Authority/Special Area Development Authority/Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations shall also be included for the coverage under PMAY-U 2.0.

PMAY-U 2.0 components

The Scheme seeks to address the affordable housing requirement in urban areas through following verticals:

  1. Beneficiary-Led Construction (BLC): Under this vertical, financial assistance will be provided to individual eligible families belonging to EWS categories to construct new houses on their own available vacant land. In case of landless beneficiaries, land rights (pattas)may be provided by States/UTs.

 

  1. Affordable Housing in Partnership (AHP): Under AHP, financial assistance will be provided to EWS beneficiaries for owning houses being built with different partnerships by States/UTs/ Cities/Public/Private agencies.

 

  • Redeemable Housing Vouchers will be given to beneficiaries who purchase house from private projects.States/UTs/ULB shall whitelist the private sector projects complying with all the necessary norms

  • An additional Grant in the form of Technology Innovation Grant (TIG) @₹1000 per sqm/unit shall be provided to AHP Projects using innovative construction technologies

 

  1. Affordable Rental Housing (ARH): This vertical will create adequate rental housing for working women/industrial workers/ urban migrants/homeless/destitute /studentsand other eligible beneficiaries. ARH shall ensure affordable and hygienic living spaces for urban dwellers who do not want to own a house but require housing for short term basis or those who do not have the financial capability to construct/buy a house.

 

This vertical will be implemented through two models as under:

  • Model-1: Utilizing existing Government funded vacant houses in cities by converting them into ARH under Public Private Partnership mode or by public agencies.

  • Model-2: Construct, Operate and Maintain rental housing by Private/Public agencies

For projects constructed using innovative technologies, TIG at the rate of ₹3,000 per sqm shall be released by Central Government while State/UT Government shall provide ₹2000/ per sqm as part of State Share.

iv. Interest Subsidy Scheme (ISS): The ISS vertical will provide benefits of subsidy on home loans for EWS/LIG and MIG families. Beneficiaries taking loan up to ₹25 lakh with house value up to 35 lakh will be eligible for 4 percent interest subsidy on first ₹8 lakh loan up to 12 years tenure. A maximum of ₹1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalmentsthrough push button. Beneficiaries can access their accounts through website, OTP or smart cards.

PMAY-U 2.0 will be implemented as Centrally Sponsored Scheme (CSS), except for the Interest Subsidy Scheme (ISS) component, which will be implemented as Central Sector Scheme.

Funding Mechanism

The cost of house construction under different verticals, except for ISS, shall be shared among Ministry, State/UT/ULB and identified eligible beneficiaries.TheGovernment Assistance in AHP/BLC verticals under PMAY-U 2.0 will be ₹2.50 lakh per unit. State/UT share shall be mandatory under the Scheme. For UTs without legislature, Central: State sharing pattern will be 100:0, For UTs with legislature (UT of Delhi, J&K and Puducherry), North-Eastern States and Himalayan States (Himachal Pradesh and Uttarakhand) sharing pattern will be 90:10 and for other states sharing pattern will be 60:40.  To improve affordability of houses, States/UTs and ULBs may give additional assistance to beneficiaries.

Under ISS vertical, Central Assistance up to ₹1.80 lakh subsidy will be given to eligible beneficiaries in 5-yearly instalments

 Detailed sharing patten is as below.

S. No.

 

States/UTs

PMAY-U 2.0 Verticals

BLC & AHP

ARH

ISS

  1.  

North-Eastern Region States, Himachal Pradesh, Uttarakhand and Union Territory (UT) of J&K, 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

 

  1.  

All other UTs

Central Govt. - ₹2.50 lakh per unit

  1.  

Remaining States

Central Govt. - ₹1.50 lakh per unit

State Govt.- Min. ₹1.00 lakh per unit

Notes:

  1. State/UT share shall be mandatory under PMAY-U 2.0.  Apart from the minimum State Share, the State Governments may also provide additional top-up share to increase the affordability.

  2. In addition to Central Assistance, MoHUA will provide Technology Innovation Grant (TIG) only to the AHP projects using innovative building materials, technologies & processes @ ₹1,000 per sqm upto 30 sqm per dwelling unit to the implementing agencies to offset the impact of any additional cost implication under AHP projects. 

 

Technology & Innovation Sub-Mission (TISM)

TISM will be set up under PMAY-U 2.0 to guide and facilitate States/UTs and other stakeholdersin adoption of modern, innovative and green technologies and building material for faster and quality construction of houses. Under TISM, States/UTs/Cities will be assisted through innovative practices and projects in challenge mode focused on disaster resistant and environment friendly technologies for climate smart buildings and resilient housing.

Affordable Housing Policy

In order to seek benefit under PMAY-U 2.0, States/UTs will have to formulate “Affordable Housing Policy” containing various reforms and incentives for ensuring active participation of Public/Private entities and promote Affordable Housing Ecosystem. ‘Affordable Housing Policy’ will include such reforms which will improve the affordability of ‘Affordable Housing’.

Impact:

PMAY-U 2.0 will achieve the vision of ‘Housing for All’ by fulfilling the housing dreams of EWS/LIG and MIG segments. The Scheme will also ensure equity across different segments of population by addressing the requirement of slum dwellers, SC/STs, minorities, widows, Persons with Disabilities and other underprivileged sections of the society. Special focus will be given to Safai Karmi, street vendors identified under PMSVANidhi Scheme and different artisans under Pradhan Mantri-Vishwakarma Scheme, anganwadi workers, building and other construction workers, residents of slums/chawls and other groups identified during operation of PMAY-U 2.0.

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Namaskar!

All journalists of Network 18, all colleagues overseeing this arrangement, all distinguished guests present here, ladies and gentlemen!

You are all discussing Rising India. And in this, your emphasis is on strength within-in simple words, your focus is on the nation’s own inherent capability. In our scriptures it is said: Tat Tvam Asi!-that which we seek in the Brahman is within us, it is us ourselves. The strength lies within us, and we must recognize it. In the past 11 years, India has recognized that very strength, and today the nation is continuously striving to empower it.

Friends,

Strength in a nation does not suddenly emerge; it is built over generations. It is refined through knowledge, tradition, hard work, and experience. But during a long period of history, through centuries of slavery, the very spirit of being strong was filled with inferiority. Imported ideologies instilled deeply into society the belief that we were uneducated and mere followers. Our scriptures say: Yādṛśī bhāvanā yasya, siddhir bhavati tādṛśī-as is one’s belief, so is the accomplishment. When the belief itself was inferior, the accomplishment was also inferior. We copied foreign technologies, waited for foreign approval-this was slavery not just political or geographical, but mental. Unfortunately, even after independence, India could not free itself from this mentality of slavery. And we are still paying the price for it. A fresh example can be seen in the discussions around trade deals. Some people are surprised-how did this happen, why are developed nations so eager to make trade deals with India? The answer lies in a confident India, emerging out of despair and hopelessness. If the country were still stuck in the pre-2014 gloom, counted among the “Fragile Five,” trapped in policy paralysis-who would have made trade deals with us, who would have even looked at us?

But friends,

In the past 11 years, new energy has flowed into the nation’s consciousness. India is now striving to regain its lost strength. Once upon a time, when India had the greatest dominance in the global economy, what was our strength? India’s manufacturing, the quality of Indian products, India’s economic policies. Today’s India is once again focusing on these aspects. That is why we worked on manufacturing, emphasized Make in India, strengthened our banking system, controlled inflation that was running in double digits, and made India the growth engine of the world. It is this strength of India that has developed nations themselves coming forward to make trade deals with us.

Friends,

When the hidden power of a nation awakens, it achieves new milestones. Let me give you some more examples. Whenever I meet heads of government from other countries, they are eager to hear about the immense power of Jan Dhan, Aadhaar, and Mobile. In a country where ATMs arrived much later compared to developed nations, how did India achieve global leadership in digital payments? Where leakage in government aid was accepted as bitter truth, how did India, through DBT, transfer 24 lakh crore rupees-twenty-four trillion rupees-to beneficiaries? India’s digital public infrastructure has today become a subject of global discussion.

Friends,

The world is astonished-how India where until 2014 nearly 30 million families lived in darkness, became one of the top countries in solar power capacity? How did India whose cities had no hope of improved public transport, become the third-largest metro network country in the world? How did India whose railways were known only for delays and slow speed achieve semi-high-speed connectivity with Vande Bharat and Namo Bharat?

Friends,

There was a time when India was only a consumer of new technology. Today, India is also a creator of new technology and is setting new standards. And this has happened because we recognized our own strength-the very strength within you are discussing is an example of this.

Friends,

When we move forward with pride, the way the world looks at us also changes. Remember, just a few years ago, how little global media discussed India’s events. Events in India were not given much importance. And today, see how every action of India is analyzed globally. The AI Summit is an example-it was held right here in this building. More than 100 countries participated. Whether Global North or Global South, all sat together at one table. From large corporations to small startups, all gathered together.

Friends,

In all the industrial revolutions so far, India and the entire Global South were only followers. But in this era of Artificial Intelligence, India is not only a participant in decisions but is also shaping them. Today we have our own AI startup ecosystem, the strength to invest in data centers, and we are working rapidly on the power most needed to store and process AI data. The reforms we have made in the nuclear power sector will also help strengthen India’s AI ecosystem.

Friends,

The organization of the AI Summit was a moment of pride for the whole of India. But unfortunately, the country’s oldest party tried to tarnish this celebration. In front of foreign guests, Congress did not just strip off clothes, but also exposed its ideological bankruptcy. When failure breeds despair and arrogance takes over, such thinking emerges that seeks to defame the nation. Clearly, Congress’s actions have angered the country. To justify its sin, they brought Mahatma Gandhi forward. Congress always does this-when it wants to hide its sins, it puts Bapu forward; when it wants to glorify itself, it gives all credit to one family.

Friends,

Congress has now reduced itself to a mere toolkit of opposition in the name of ideology. This mentality of blind opposition has grown so much that they do not miss any chance to belittle the nation on every stage, every platform. Whatever good happens for the country, whatever auspicious occurs, Congress only knows how to oppose.

Friends,

I have a long list-the new Parliament building was constructed, they opposed it. The lions of the Ashoka pillar atop Parliament-they opposed it. Those whose lions once ran away after eating ordinary citizens’ shoes, were frightened by the teeth of the Parliament’s lions. The Kartavya Path was built, they opposed it. The armed forces carried out surgical strikes, they opposed it. The Balakot air strike happened, they opposed it. Operation Sindoor was conducted, they opposed it. In short, for every achievement of the nation, Congress’s toolkit produces only one thing-opposition.

Friends,

The nation brought down the wall of Article 370, the country rejoiced. But Congress opposed it. We enacted the CAA law-they opposed it. We introduced the Women’s Reservation Bill-they opposed it. We brought a law against triple talaq-they opposed it. We launched UPI-they opposed it. We initiated the Swachh Bharat Mission-they opposed it. The country developed its own COVID vaccine, and even that they opposed.

Friends,

In a democracy, opposition does not mean blind resistance. In democracy, opposition means presenting an alternative vision. That is why the enlightened citizens of the country have been teaching Congress a lesson-not just today, but continuously for the past four decades. What I am about to say, I urge my media colleagues to analyze as well. You will see that Congress’s votes are not being stolen; rather, the people of the country no longer consider Congress worthy of their vote. And this decline began after 1984. In 1984, Congress received 39 percent of the vote and more than 400 seats. In subsequent elections, Congress’s vote share kept declining. And today, Congress’s condition is such that only four states remain where Congress has more than 50 legislators. Over the past 40 years, the number of young voters has increased, and Congress has steadily disappeared. Congress has become a club of people enslaved to one family. That is why first the millennials taught Congress a lesson, and now Gen Z is also ready.

Friends,

Congress and its allies have such a narrow mindset that they have even made long-term vision a crime. Today, when we talk about a developed India by 2047, some people ask-“Why talk about something so far ahead now?” Some even say, “Modi won’t be alive till then.” The truth is that nation-building never happens through short-term thinking. It happens through a grand vision, patience, and timely decisions. Let me present some facts before Network 18’s viewers. Every year, India spends more than 6 lakh crore rupees on freight through foreign ships. On fertilizer imports, we spend 2.25 lakh crore rupees annually. On petroleum imports, we spend 11 lakh crore rupees annually. That means, every year, trillions of rupees are flowing out of the country. If this investment had been directed towards self-reliance 20–25 years ago, today this capital would have been strengthening India’s infrastructure, research, industry, farmers, and youth. Today, our government is working with this very vision. To avoid paying 6 lakh crore rupees to foreign ships, Indian shipping and port infrastructure is being strengthened. To increase domestic fertilizer production, new plants are being set up, and nano-urea is being promoted. To reduce dependence on petroleum, ethanol blending, the Green Hydrogen Mission, solar energy, and electric mobility are being prioritized.

And friends,

We must take decisions today while keeping the future in mind. That is why India is building a semiconductor ecosystem. In defense production, mobile manufacturing, drone technology, the critical minerals sector, and investments therein-we are laying the foundation for economic security in the coming decades. The 2047 goal is not a political slogan. It is also a resolve to correct the historical mistakes where Congress governments failed to invest in time. Today, if we build indigenous ships, produce our own energy, and develop new technologies ourselves, then future generations will not discuss the burden of imports, but the capacity for exports. The progress of a nation is determined not by “today’s convenience” but by “tomorrow’s preparation.” And the hard work done with foresight is the foundation of a self-reliant, strong, and prosperous India in 2047. And no matter how many clothes Congress tears in protest, we will continue to work tirelessly.

Friends,

One very important condition of nation-building is sincerity of intent. Congress and its allies have failed even here. They have never worked with sincerity. They have no concern for the suffering of the poor. For example, in Bengal, the Ayushman Bharat scheme has still not been implemented. If there were sincerity, would they have blocked a scheme that provides free treatment up to 5 lakh rupees for the poor? No. You also know that under the PM Awas Yojana, permanent houses are being built for the poor. Let me give another figure to Network 18’s viewers. In Tamil Nadu, about 9.5 lakh permanent houses have been allocated for poor families-9.5 lakh. But construction of 3 lakh of these houses has stalled. Why? Because the DMK government is not showing interest in building these homes for the poor. And the reason is clear-their intent is not sincere.

Friends,

Let me also give you an example from the agriculture sector. During Congress’s time, farming was left to its fate. Small farmers were ignored, crop insurance was in shambles, the Swaminathan Committee’s report on MSP was buried in files. Congress made announcements in the budget, but nothing happened on the ground-because they lacked sincerity. We began working sincerely for the farmers of the country, and today the world is witnessing the results. Today, India is becoming one of the major agricultural exporters in the world. We have created a safety net for farmers at every level. Through the PM Kisan Samman Nidhi, more than 4 lakh crore rupees have been deposited directly into farmers’ accounts. We set MSP at 1.5 times the cost and made record purchases. Let me give you just one figure-pulses. The UPA government, in 10 years, purchased only 6 lakh metric tons of pulses at MSP-6 lakh metric tons. Our government has already purchased about 170 lakh metric tons of pulses at MSP-nearly 30 times more. Now you decide who truly works for the farmers.

Friends,

The UPA government was also stingy in providing help to farmers through the Kisan Credit Card. In its 10 years, the UPA government gave 7 lakh crore rupees in agricultural loans-7 lakh crore rupees. Whereas our government has given four times more-28 lakh crore rupees. During UPA’s time, only 5 crore farmers benefited from this. Today, the number has more than doubled, reaching nearly 12 crore farmers. That means, for the first time, even small farmers have received help. Our government has also given farmers the protective shield of the PM Fasal Bima Yojana. Under this, about 2 lakh crore rupees have already been provided to farmers in times of crisis. Because we are working with sincerity, the confidence of India’s farmers is rising, their productivity is increasing, and their incomes are growing.

Friends,

A quarter of the 21st century has already passed. The next phase is the decisive period of India’s development. The decisions taken today will determine the direction of the future. We must move forward by recognizing and enhancing our strength. Every individual must aim for excellence in their field, every institution must make excellence its culture. We should not just produce products, but produce best-quality products. We should not just do routine work, but world-class work. We must convert capability into performance. As I said from the Red Fort-this is the time, the right time. This is the time to take India to new heights. Once again, my heartfelt congratulations and thanks to all of you. Namaskar.