New Delhi: In a landmark decision, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the launch of Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, aimed at addressing the housing needs of one crore urban poor and middle-class families over the next five years. The scheme will provide financial assistance of ₹2.30 lakh crore through States, Union Territories (UTs), and Primary Lending Institutions (PLIs) to help beneficiaries construct, purchase, or rent affordable housing in urban areas.
PMAY-U 2.0 builds on the success of the original PMAY-U, a flagship program of the Government of India, which has already sanctioned 1.18 crore houses and delivered over 85.5 lakh pucca houses to eligible beneficiaries. The new phase of the scheme underscores the government’s commitment to providing all-weather, durable housing for every citizen, ensuring that the dream of owning a home becomes a reality for the nation’s weaker sections and middle-class families.
The approval follows Prime Minister Modi’s announcement on Independence Day 2023, where he pledged to introduce a new scheme to benefit economically weaker sections (EWS) and middle-class families in their pursuit of home ownership. The Union Cabinet’s decision on June 10, 2024, to assist an additional three crore rural and urban households further emphasizes the government’s dedication to meeting the housing needs of India’s growing population.
PMAY-U 2.0 will be rolled out with an investment of ₹10 lakh crore, focusing on ensuring that every eligible family in urban areas has access to affordable, quality housing. The scheme aims to improve the quality of life for millions of citizens, aligning with the Prime Minister’s vision of a New India.
In addition to the housing scheme, the Cabinet has also increased the corpus fund of the Credit Risk Guarantee Fund Trust (CRGFT) from ₹1,000 crore to ₹3,000 crore. This enhancement will benefit the Economically Weaker Sections (EWS) and Low Income Group (LIG) segments by providing credit risk guarantees on affordable housing loans from banks, Housing Finance Companies (HFCs), and Primary Lending Institutions (PLIs). The management of the Credit Risk Guarantee Fund will be transferred to the National Credit Guarantee Company (NCGTC) from the National Housing Bank (NHB), and the scheme will be restructured with updated guidelines to be issued by the Ministry of Housing and Urban Affairs (MoHUA).
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