The Union Cabinet approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 last week. The scheme aims to make one crore houses for urban poor and middle-class families over the next five years, with an investment of Rs 10 lakh crore and a government subsidy of Rs 2.30 lakh crore, according to a press note.

PMAY-Urban 2.0: Who can take the benefit?

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"Special attention will be given to marginalised groups, including slum dwellers, SC/STs, minorities, widows, persons with disabilities, and other underprivileged sections of society. Additionally, groups like Safai Karmi, street vendors, artisans, Anganwadi workers, and residents of slums/chawls will receive focused support under this scheme," according to the PM India website.

PMAY-Urban 2.0: Eligibility

These people are eligible to take the benefit of the scheme:
1- Families who belong to the economically weaker section (EWS)
2- Low-income group (LIG)
3- Middle-income group (MIG) segments
4- Do not currently own a pucca house anywhere throughout the country

PMAY-Urban 2.0: Income criteria for eligible persons

EWS: Income should not be more than Rs 3 lakh per annum.
LIG households with an annual income between Rs 3-6 lakh; and MIG households with a yearly income between Rs 6-9 lakh.

According to the PM India website, the Scheme aims to meet the affordable housing needs in metropolitan areas through the following verticals:

1. Beneficiary-Led Construction (BLC)
Financial assistance will be provided to eligible EWS families to construct new houses on their own available vacant land. States/UTs may also provide land rights (pattas) to landless beneficiaries.

2. Affordable Housing in Partnership (AHP)
This component provides financial assistance to EWS beneficiaries for owning houses constructed in partnership with states/UTs, cities, public, and private agencies. Additional grants, such as the Technology Innovation Grant (TIG) of Rs 1,000 per sqm/unit, will be provided for projects using innovative construction technologies.

3. Affordable Rental Housing (ARH)
This vertical focuses on creating rental housing for working women, industrial workers, urban migrants, and other eligible beneficiaries. The ARH vertical will be implemented through two models: utilizing existing government-funded vacant houses and constructing new rental housing units. TIG of Rs 3,000 per sqm will be provided for projects using innovative technologies.

4. Interest Subsidy Scheme (ISS)
The ISS vertical offers a 4 per cent interest subsidy on home loans up to Rs 25 lakh for EWS/LIG and MIG families. The subsidy will be provided in five yearly installments, with a maximum subsidy of Rs 1.80 lakh.