Pradhan Mantri Awas Yojana –Urban


1.      Ministry Responsible.


Ministry of housing and urban poverty alleviation

2.      Period of Implementation:



3.      Theme:

Housing for all by 2022.



4.      PMAY-Urban Components:


1.      Slum rehabilitation of slum dwellers. With participation of private developers using land as a resource. (centre sponsored scheme).

2.      Promotion of affordable housing for weaker section through Credit linked Subsidy. (Only this component will be completely financed by Union Government i.e a central Sector scheme.)

3.      Affordable housing in partnership with public and private sectors. (centre Sponsored scheme).

4.      Subsidy for beneficiary led individual house construction.(centre sponsored scheme).


5.      Implementation.

·         For the implement of scheme, 500 class 1 cities have been selected, where scheme will be rolled out in phases.


1.      Phase 1 : (Apr 2015-March 2017) – 100 cities will be covered

2.      Phase 2 : (Apr 2017-March 2019) – 200 cities will be covered

3.      Phase 3 : (Apr 2019- March 2022) – Rest of the cities and any other addition


6.      Specification.

·         The houses constructed should be compliant to national building code.

·         All houses build should have a functioning toilet.

·         The minimum carpet area of Houses should be 30 sq meter.




Component wise details of PMAY-Urban


1.      In-situ sum redevelopment using land as resources

·         By involving private players, slums to be redeveloped with proper  amenities- water ,electricity etc

·         The contribution of beneficiary slum dwellers will be decided by state/UTs governments.

·         To make project financially viable for private partners, additional funds can be provided by state/UT governments.


2.      Credit –linked  subsidy scheme

·         Eligible EWS or low income group families can avail subsidized loan for constructing or purchasing house.

·         The rate charged on loans will be 6.5% with a repayment period of 15 years.

·         The maximum loan amount under subsidy is 6 lakh.

·         Housing and urban development cooperation (HUDCO) and National housing bank (NHB) have been selected as nodal agencies to channelize subsidy for housing under PMAY- Urban.

·         For example, if State Bank of India gives a home loan on 9% then under PMAY-urban, eligible EWS or LIG family can take loan from SBI at 6.5 % only. Thus the loss of 2.5 % incurred by SBI on interest will be repaid by HUDCO and NHB.


3.      Affordable housing in partnership (AHP)

·         Financial assistance will be provided for House being built for EWS under partnerships of state/UT governments with private players.(i.e. public private partnership)

·         A central assistance will be released at Rs 1.5 lakh per EWS house built under PPP model.

·         States /UT government will decide the prices of such EWS housing units manufactured.


4.      Beneficiary led individual house construction or enhancement

·         Under the component any EWS wish to construct or extend existing house on his own, will be provided financial assistance.

·         Financial assistance will be 1.5 lakh per family.

·         A slum dwelling family can also avail assistance if they wish construct a Pucca house.


5.      Technology sub-mission

·         There is a sub-mission within the PMAY-urban to involve modern and green material and technologies for constructing houses.

·         Technology submission will also help to design layouts and building plan according to geo-climatic regions.

·         IIT,NIT and planning and architecture institutes will be roped in to develop technology solutions and  capacity building of states/UTs.




1.      What is the definition of Beneficiary in Pradhan Mantri Awas Yojana- Urban ?


The family including Husband +Wife + Unmarried children and doesn’t own a Pucca house anywhere in India.


2.      What is affordable Housing Project:


Housing projects where 35% of houses are constructed for EWS.


3.      What is the Definition of Economic Weaker Section under the Scheme?

·         Family with annual income within Rs 300,000 per annum.

·         States and UTS are allowed to redefine the criteria with consultation of Union government.



4.      Definition of low Income Group(IWG)


·         Family with annual income between 300,000/- to 600,000/-


About the author: Aman Kumar

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