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Indian Government Targets Housing for All; To Build 3 Crore rural and urban houses Under PMAY

1 month ago
Indian Government Targets Housing

Image Source: chandlervid85 on


Hours after taking office for a third consecutive term, Prime Minister Narendra Modi’s new Union Cabinet unveiled its first major policy initiative: providing assistance for constructing an additional three crore rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). 

Real estate experts believe this move will ensure continuity in the Housing for All scheme and revitalize the affordable housing segment. 


Cabinet Approval 

During the maiden Cabinet meeting of his third term on Monday, Prime Minister Modi approved government assistance for the construction of three crore rural and urban houses under PMAY. 

Of these, two crore houses will be built under PMAY-Gramin, while one crore will be constructed under PMAY-Urban. 

An official source disclosed, “It has been decided in the Cabinet meeting today to provide assistance to three crore additional rural and urban households for the construction of houses, to meet the housing requirements arising out of the increase in the number of eligible families.” 


Prime Minister’s Announcement 

In a post on X, Modi described the Cabinet’s decision as a significant step towards promoting a dignified life and ease of living for millions of citizens. “Our government has today decided to expand the Pradhan Mantri Awas Yojana and build 3 crore new houses in villages and cities. This decision also reflects our commitment to make the living standards of the people easier. This will not only fulfil the need of people for houses, but will also provide them a quality life. The expansion of PMAY also brings out our determination for development of all and social justice (Sabka Vikas aur Samaj Kalyan),” he said. 


Background of PMAY 

Since 2015-16, the Centre has been implementing the PMAY scheme to provide assistance to eligible rural and urban households for constructing houses with basic amenities. 

Over the past decade, approximately 4.21 crore houses have been completed, according to government records. 


Details of the Expansion 

The PMAY expansion aims to address the growing housing needs due to an increase in eligible families. 

Houses constructed under PMAY come with essential amenities such as household toilets, LPG connections, electricity, and functional tap connections, achieved through collaboration with other central and state government schemes. 


Financial Assistance 

Under PMAY-G, beneficiaries receive funds up to Rs 1.2 lakh in plains and Rs 1.3 lakh in hilly states, difficult areas, and tribal and backward districts under the Integrated Action Plan (IAP). 

Officials have indicated that the Centre will increase assistance by about 50%, raising construction costs from Rs 1.2 lakh to Rs 1.8 lakh in plains and from Rs 1.3 lakh to Rs 2 lakh in hilly areas. 


Progress and Future Plans 

These additional 2 crore PMAY-G houses are in addition to the 2.95 crore houses sanctioned under the rural scheme since its inception in 2016. Of these, 2.61 crore have already been built under PMAY-G. 


Funding Structure 

Funding is shared between the Centre and states in a 60:40 ratio for plain areas, and a 90:10 ratio for northeastern states, two Himalayan states, and the Union Territory of Jammu and Kashmir.  The Centre bears 100% of the cost for other Union Territories, including Ladakh. 

During the Interim Budget presentation for 2024-25, Finance Minister Nirmala Sitharaman had announced plans to build 2 crore more houses under PMAY-G over the next five years.