Minister of State for Housing and Urban Affairs Tokhan Sahu informed Parliament that the government has approved a total of 125.15 lakh houses across the country under the Pradhan Mantri Awas Yojana–Urban (PMAY-U).
Out of these, 13.67 lakh houses have been sanctioned under the upgraded PMAY-U 2.0 initiative.
97.3 Lakh Houses Delivered to Beneficiaries
Providing an update on progress, the minister stated:
- 116.57 lakh houses have commenced construction
- 97.30 lakh houses have been completed and delivered as of March 2, 2026
The scheme aims to provide permanent houses with basic civic amenities to eligible urban beneficiaries.
Centre Supports States in Housing Implementation
Housing and urban development fall under the jurisdiction of states and Union Territories. However, the central government supports their efforts through financial assistance under PMAY-U, which was launched on June 25, 2015.
The scheme targets:
- First-time homebuyers
- Youth and working professionals
- Economically weaker sections
PMAY-U 2.0 Launched to Expand Housing Access
Based on learnings from the initial phase, the Ministry has revamped the scheme and launched PMAY-U 2.0 on September 1, 2024, under the “Housing for All” mission.
The new phase aims to provide one crore additional houses over the next five years through construction, purchase, and rental options.
Four Key Components of PMAY-U 2.0
The scheme is being implemented through four verticals:
- Beneficiary-Led Construction (BLC)
- Affordable Housing in Partnership (AHP)
- Affordable Rental Housing (ARH)
- Interest Subsidy Scheme (ISS)
Interest Subsidy for Youth and Professionals
Under the Interest Subsidy Scheme (ISS):
- Beneficiaries with annual household income up to ₹9 lakh are eligible
- Subsidy of up to ₹1.8 lakh on home loans up to ₹25 lakh
- Applicable for houses costing up to ₹35 lakh
- Offers 4% interest subsidy
This component is particularly aimed at supporting youth and working professionals in owning affordable homes.
Focus on Affordable Rental Housing
To cater to urban migrants, students, and young professionals, the government launched the Affordable Rental Housing Complexes (ARHC) scheme in July 2020.
Building on its success, a dedicated Affordable Rental Housing (ARH) vertical has been included under PMAY-U 2.0.
Promoting Housing Near Workplaces
The ARH component focuses on developing affordable rental housing near employment hubs and workplaces.
Key objectives include:
- Reducing travel time and commuting costs
- Improving productivity and quality of life
- Promoting inclusive and sustainable urban development
Strengthening Urban Housing Ecosystem
The PMAY-U and its upgraded version continue to play a key role in addressing urban housing needs by combining ownership and rental solutions, thereby expanding access to affordable housing across India.
