So far, the PMAY, launched in 2015, has enabled construction of as many as 26 million houses.
The construction of 30 million houses in rural and urban areas under the Pradhan Mantri Awas Yojana (PMAY) is projected to cost the Central exchequer approximately Rs 4 trillion, with state governments expected to contribute an additional Rs 2.5 trillion, according to official sources. "These are rough estimates, based on initial calculations," a source indicated. The expenditure is anticipated to span over four to five years.
On Monday, the Union Cabinet approved the construction of an additional 20 million houses under PMAY-Gramin and 10 million under PMAY-Urban. Details regarding the financial assistance and implementation timeline have not yet been disclosed.
Under the PMAY scheme, the cost-sharing for unit assistance between the Central and state governments is set at a 6:4 ratio in plain areas, and 9:1 for North Eastern and hilly states.
Previously, it was reported that these houses would be built over the next five years. An official had mentioned that, under the revamped PMAY-G, cash support would likely increase to around Rs 2.3-2.4 lakh per housing unit from the previous Rs 1.2-1.3 lakh, due to rising costs.
For urban households, the Centre may introduce a new Rs 60,000 crore interest subsidy scheme for the urban poor and middle class, lasting five years. This scheme would offer an interest subvention of 3-6% per annum on home loans up to Rs 5 million, compared to the existing scheme that provided interest subvention on loans up to Rs 18 lakh.
To achieve the "Housing for All" target in rural areas, the Centre launched PMAY-G on April 1, 2016, sanctioning 29.5 million houses to states. Since its inception, the Centre has spent Rs 2.72 trillion on this scheme.
Of the 11.86 million houses sanctioned under PMAY-U since its launch in June 2015, 11.41 million have been initiated, and 8.2 million completed. The Centre has allocated Rs 1.63 trillion to the urban housing scheme since FY16.
Comments