Pradhan Mantri Awas Yojana

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Pradhan Mantri Awas Yojana (Urban)
Prime Minister(s)Narendra Modi
MinistryMinistry of Housing and Urban Poverty Allevation
Key peopleHardeep Singh Puri
Launched25 June 2015; 3 years ago (2015-06-25)

Pradhan Mantri Awas Yojana (PMAY) is an initiative by Government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 31 March 2022.[1][2] It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor.[3][4] This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc.[5] Cumulative total number of funded houses approved thus far is 39,25,240 in urban area including the subsumed RAY scheme and completion of construction of 5 million rural houses by March 2018 and 10 million rural houses by March 2019.[6][5]


Pradhan Mantri Awaas Yojana was launched in June 2015 with an aim to provide affordable housing in urban poor.[7][8]

Under PMAY, it is proposed to build 2 crore houses for urban poor including Economically Weaker Sections and Low Income Groups in urban areas by the year 2022 through a financial assistance of 2 trillion (US$29 billion) from central government.[3][1][2] This Mission has four components viz., In-situ Slum Redevelopment with private sector participation using land as resource, Affordable Housing through Credit Linked Subsidy, Affordable Housing in Partnership with private and public sector and Beneficiary led house construction/enhancement. Under these components, central assistance will be in the range of 1 lakh (US$1,400) to 2.30 lakh (US$3,300).[citation needed]

The scheme[edit]

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri Awas Yojana would be constructed through a technology that is eco-friendly, while allotting ground floors in any housing scheme under PMAY, preference will be given to differently abled and older persons.


The government has approved an investment of 439.22 billion (US$6.4 billion) for construction of 6,83,724 houses for urban poor including central assistance commitment of 100.50 billion (US$1.5 billion) by April 2016.[7]

Eligibility criteria[edit]

Condition for PMAY: (a) Beneficiary max age 70 years, (b) EWS (Economic Weaker Section) annual income Less than Rupees 3 Lac and LIG (Lower Income Group) Annual Income 4,00,000 to 6,00,000 Lac INR as well as Mid Income group since Feb 2017, and (c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India.[4]

The houses given under this scheme will be owned by females or jointly with males.[7]


3 Phases of PMAY envisage starting and completing the house construction work as follows:

  • PMAY Phase-1 from April 2015 to March 2017 to cover 100 cities.
  • PMAY Phase-2 from April 2017 to March 2019 to cover additional 200 cities.
  • PMAY Phase-3 from April 2019 to March 2022 to cover the remaining cities.

States and cities covered[edit]

As of 25 April 2016, the government has identified 2,508 cities and towns in 26 states for beginning construction of houses for urban poor.[9] Construction of 1,86,777 additional houses for the benefit of urban poor with an investment of Rs.11,169 cr with central assistance of Rs. 2,797 cr was approved in February 2018, taking the cumulative total houses approved to 39,25,240 houses including subsumed RAY scheme, of the targeted 10 million houses by March 2022.[10]

  1. Chhattisgarh – 1000 cities/towns
  2. Jammu and Kashmir – 19 cities/towns
  3. Jharkhand – 15 cities/towns
  4. Madhya Pradesh – 74 cities/towns
  5. Rajasthan
  6. Haryana, 53,290 houses in 38 cities and towns with an investment of Rs.4,322 cr (c. Feb 2018)[10]
  7. Tamil Nadu, 40,623 houses in 65 cities and towns with an investment of Rs.2,314cr (c. Feb 2018)[10]
  1. Karnataka, 32,656 houses in 95 cities with an investment of Rs.1,461 cr (c. Feb 2018)[10]
  2. Gujarat, 15,584 houses in 45 cities and towns with an investment of Rs. 946 cr (c. Feb 2018)[10]
  3. Maharashtra, 12,123 houses in 13 cities and towns with an investment of Rs.868 cr (c. Feb 2018)[10]
  4. Kerala, 9,461 houses in 52 cities with an investment of Rs.284 cr (c. Feb 2018)[10]
  5. Uttarakhand, 6,226 houses in 57 cities and towns with an investment of Rs.258 cr (c. Feb 2018)[10]
  6. Orissa, 5,133 houses in 26 cities and towns with an investment of Rs.156 cr (c. Feb 2018)[10]

Private contributors[edit]

IIFL Home Loans have been helping beneficiaries avail Credit linked Subsidy under Pradhan Mantri Awas Yojana across the country. Till 17 August 2017, the company has helped 4187 beneficiaries avail government subsidy.[11] ICICI Bank is giving subsidised home loans to the people eligible for this scheme.[12] AU Housing Finance Limited is also doing subsidy based funding under this scheme. Home First Finance company also provide help beneficiaries to avail Credit linked Subsidy under Pradhan Mantri Awas Yojana across different regions of India.[13]

"Rajiv Awas Yojana (RAY)" was an Indian government program that attempts to help slum dwellers gain appropriate housing and address the processes by which slums are created and reproduced. It was introduced by the Indian government's Ministry of Housing and urban poverty Alleviation.[14] The programme was a Centrally Sponsored Scheme, which ran from 2013 to 2014.[15] The scheme aimed to make India slum-free by 2022 by providing people with shelter or housing, free of cost. It began with a pilot project, before launching in mission mode.[16] The government earmarked 322.30 billion (US$4.7 billion) for its implementation during India's 12th Five Year Plan.[14] One million beneficiaries were proposed to be covered under Rajiv Awas Yojana.[17]

Site selection was to be made by the states in consultation with the Centre giving priority to district headquarters, cities of religious heritage and tourist importance, with due consideration to the criterion of the pace of growth of the city, of slums within the city and predominance of Scheduled Caste, Scheduled Tribe and minority population and other weaker and vulnerable section of the society.[14] SBI has now slashed down the interest rate of home loans above Rs. 75 lakh by 10 basis points. From June 15, 2017, the rate for the same will be 8.55-8.6%.

See also[edit]


  1. ^ a b "Housing for All scheme gets govt nod: All you need to know", Business Today, 15 September 2015
  2. ^ a b "305 Cities Identified Under 'Housing for All' Scheme", NDTV, 30 August 2015
  3. ^ a b "Over 300 cities identified for 'Housing for All' scheme", Business Today, 31 August 2015
  4. ^ a b All you wanted to know about Pradhan Mantri Awas Yojana, Business Standard, Feb 2017.
  5. ^ a b 10 lakh homes built under Pradhan Mantri Awas Yojana (Gramin): Government, Economic Times, 1 Dec 2017.
  6. ^ Cite error: The named reference ihouse1 was invoked but never defined (see the help page).
  7. ^ a b c "Urban houses under PM Awas Yojana must belong", The Economic Times, 30 May 2016
  8. ^ "Modi government to rename new-look Indira Awaas Yojana to Pradhan Mantri Awaas Yojana", The Economic Times, 29 December 2015
  9. ^ "Pradhan Mantri Awas Yojana: 2,508 cities selected under Modi's scheme for affordable housing", The Financial Express, 4 May 2016, archived from the original on 18 May 2016, retrieved 31 May 2016
  10. ^ a b c d e f g h i 1,86,777 Affordable Houses Sanctioned for Urban Poor Under Pmay (Urban), Accommodation Times, 9 Feb 2018.
  11. ^ "PMAY Overview Page". IIFL. 8 June 2017. Retrieved 24 February 2018.
  12. ^ "ICICI Bank launches home loan with subsidy under Pradhan Mantri Awas Yojana", The Times of India, 11 March 2016
  13. ^
  14. ^ a b c A Comprehensive Guide to Rajiv Awas Yojana
  15. ^ Rajiv Awas Yojana, Press Information Bureau, 5 February 2014
  16. ^ "CCEA approves launch of Rajiv Awas Yojana", Business Standard
  17. ^ One Million Beneficiaries Proposed to be Covered Under Rajiv Awas Yojana, archived from the original on 17 November 2015