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; 5 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)[3] (PMAY-G and also PMAY-R) for the rural poor.[4][5] 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.[6] Total 1 cr homes are approved against total demand of 1.12Cr as of 28 December 2019.[7]


Public housing programme in India started with the rehabilitation of refugees immediately after independence. Till 1960, nearly 5 lakh families were provided houses in different parts of northern India. In 1957, within the ambit of the second five-year plan of Prime Minister Nehru,Village Housing Programme (VHP) was introduced providing loans to individuals and cooperatives of up to 5,000/- per unit. Only 67,000 houses could be constructed in this scheme till end of the 5 th Five Year Plan (1974-1979). Another scheme introduced in the 4 th Plan called House Sites-cum-Construction Assistance Scheme (HSCAS) was also transferred to the State Sector from 1974-75.[8]

With the launch of Indira Awas Yojana (IAY) by the then Prime Minister Rajiv Gandhi in 1985, the public housing programme in India got a boost. IAY was launched as a rural housing programme targeting SC/ST and Minority population. The programme was gradually extended to cover all Below Poverty Line (BPL) population.[9]

As a part of the continuous efforts of the Indian Government to fulfill the housing needs of rural and urban poor, Pradhan Mantri Awaas Yojana was launched by Prime Minister Narendra Modi in June 2015 with an aim to provide affordable housing .[10][11]

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$28 billion) from central government.[4][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$3,200).[citation needed]

The scheme[edit]

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% (for EWS and LIG), 4% for MIG-I and 3% for MIG-II[12][13] 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$6.2 billion) for construction of 6,83,724 houses for urban poor including central assistance commitment of 100.50 billion (US$1.4 billion) by April 2016.[10]

Eligibility criteria[edit]

Condition for PMAY: (a) Beneficiary max age 70 years, (b) EWS (Economic Weaker Section) family income limit is 3 Lakhs per annum and for LIG (Lower Income Group) Family Income limit is 6 Lakhs per annum,[14] and Middle Income Group -(MIG-I) income between 6 lakhs to 12 lakhs per annum, (MIG-II) income between 12 lakhs to 18 lakhs per annum [15][13] c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India.[5] d)The loan applicant should not have availed any central/state government subsidy or benefit for buying a home under the PMAY scheme. e)Currently, the loan applicant should not own any property under their name and along with any of the family members (including the dependents). f)The home renovation or improvement loans, self-construction loans will be allocated only for EWS and LIG categories.[16]

The houses given under this scheme will be owned by females or jointly with males.[10]


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.[17] Construction of 1,86,777 additional houses for the benefit of urban poor with an investment of 11,169 cr with central assistance of 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.[18]

  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 4,322 cr (c. Feb 2018)[18]
  7. Tamil Nadu, 40,623 houses in 65 cities and towns with an investment of 2,314cr (c. Feb 2018)[18]
  1. Karnataka, 32,656 houses in 95 cities with an investment of 1,461 cr (c. Feb 2018)[18]
  2. Gujarat, 15,584 houses in 45 cities and towns with an investment of 946 cr (c. Feb 2018)[18]
  3. Maharashtra, 12,123 houses in 13 cities and towns with an investment of 868 cr (c. Feb 2018)[18]
  4. Kerala, 9,461 houses in 52 cities with an investment of 284 cr (c. Feb 2018)[18]
  5. Uttarakhand, 6,226 houses in 57 cities and towns with an investment of 258 cr (c. Feb 2018)[18]
  6. Orissa, 5,133 houses in 26 cities and towns with an investment of 156 cr (c. Feb 2018)[18]

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.[19] ICICI Bank is giving subsidised home loans to the people eligible for this scheme.[20] 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.[21]

"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.[22] The programme was a Centrally Sponsored Scheme, which ran from 2013 to 2014.[23] 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.[24] The government earmarked 322.30 billion (US$4.5 billion) for its implementation during India's 12th Five Year Plan.[22] One million beneficiaries were proposed to be covered under Rajiv Awas Yojana.[25]

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.[22] SBI has now slashed down the interest rate of home loans above 75 lakh by 10 basis points. From June 15, 2017, the rate for the same will be 8.55-8.6%.


  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. ^ Chauhan, ArbindKumar; Chaudhary, Shiv; Kumar, Shivkumar Chauhan (2019). "Do noise stress impact to addiction?". Indian Journal of Health Sciences and Biomedical Research (KLEU) (1): 3. doi:10.4103/kleuhsj.kleuhsj_170_18. ISSN 2542-6214.
  4. ^ a b "Over 300 cities identified for 'Housing for All' scheme", Business Today, 31 August 2015
  5. ^ a b All you wanted to know about Pradhan Mantri Awas Yojana, Business Standard, Feb 2017.
  6. ^ 10 lakh homes built under Pradhan Mantri Awas Yojana (Gramin): Government, Economic Times, 1 Dec 2017.
  7. ^ "HUA launches 'Angikaar campaign', to bring PMAY(U) beneficiaries into Ujjawala, Ayushman Bharat fold", The Economic Times, 29 August 2019
  8. ^ "Indira Awas Yojana - Histrory" (PDF). 2013.
  9. ^ "Indira Awas Yojana - Guidelines" (PDF).
  10. ^ a b c "Urban houses under PM Awas Yojana must belong", The Economic Times, 30 May 2016
  11. ^ "Modi government to rename new-look Indira Awaas Yojana to Pradhan Mantri Awaas Yojana", The Economic Times, 29 December 2015
  12. ^ RBI Bulletin dated 10 Jan 2018,
  13. ^ a b "What is the eligibility for Pradhan Mantri Awas Yojana scheme?", Business Insider India, 14 August 2019
  14. ^ RBI Notifications (Updated as on June 18, 2019)
  15. ^ RBI Bulletin on Affordable Housing in India dated 10 Jan 2018
  16. ^
  17. ^ "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
  18. ^ 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.
  19. ^ "PMAY Overview Page". IIFL. 8 June 2017. Retrieved 24 February 2018.
  20. ^ "ICICI Bank launches home loan with subsidy under Pradhan Mantri Awas Yojana", The Times of India, 11 March 2016
  21. ^
  22. ^ a b c A Comprehensive Guide to Rajiv Awas Yojana
  23. ^ Rajiv Awas Yojana, Press Information Bureau, 5 February 2014
  24. ^ "CCEA approves launch of Rajiv Awas Yojana", Business Standard, 3 September 2013
  25. ^ One Million Beneficiaries Proposed to be Covered Under Rajiv Awas Yojana, archived from the original on 17 November 2015

External links[edit]