Budget 2024: 3 crore houses to be built under Pradhan Mantri Awas Yojana

Finance Minister Nirmala Sitharaman in her seventh Budget today, July 23 announced that three crore houses will be built as part of Pradhan Mantri Awas Yojana (PMAY).

While presenting the Budget, FM shared the plan to expand PMAY.

The Modi 3.0 government has proposed a Rs 2.2 lakh crore increase in urban housing. In her Budget speech, Union Finance Minister Nirmala Sitharaman said that Rs 10 lakh crore will be invested to meet the housing requirements of one crore urban poor and middle-class people.

The government has also announced around Rs 3 lakh crore earmarked for women related schemes and Rs 2.66 lakh crore has been approved for rural development, infrastructure and others.

Govt allocates Rs 4,000 crore for Credit Linked Subsidy Scheme

The government on Tuesday brought back interest subsidy under the Pradhan Mantri Awas Yojana (Urban) 2.0 and set aside Rs 4,000 crore for Credit Linked Subsidy Scheme (CLSS).
In the 2024-25 Union Budget, PMAY-U has been allocated Rs 30,170 crore, an increase of 20.19 per cent from the 2023-2024 budgetary allocation.

According to the Union Housing and Urban Affairs Ministry, the interest subsidy scheme can soon be availed by the economically weaker section (EWS), lower income group (LIG) and middle income group.

Nearly two years ago, the government did not extend the time period of CLSS under PMAY, which provided subsidised home loans based on income.

At present, the scheme is being implemented through three verticals -- Beneficiary Led Construction/Enhancement, Affordable Housing in Partnership and In-situ Slum Redevelopment.

Presenting the Budget 2024-25 in the Lok Sabha on Tuesday, Finance Minister Nirmala Sitharaman said that three crore additional houses under the PM Awas Yojana in rural and urban areas will be constructed, for which the necessary allocations are being made.

According to budgetary document, Rs 3,000 crore has been allocated for EWS and LIG groups to construct houses under CLSS in urban areas while the middle income group will be provided Rs 1,000 crore.

Sitharaman announced central assistance of Rs 2.2 lakh crore over the next five years to meet housing requirement of one crore urban poor and middle class families under the PMAY-U and proposed interest subsidy to provide loans at affordable rates.

She said, "Under the PM Awas Yojana Urban 2.0, housing needs of one crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore." "This will include the central assistance of Rs 2.2 lakh crore in the next five years," she added.

The government also plans to provide interest subsidy to facilitate loans at affordable rates, the minister said.

An official in the ministry said that modalities of the PMAY-U 2.0 have been worked out and the second phase of PMAY-U will be launched soon.

In the Union Budget, the Housing and Urban Affairs Ministry has been allocated Rs Rs 82,576 crore against Rs 76,431 crore in the last financial year.

With agency inputs