Prime Minister Narendra Modi is set to release the first instalment of funds for constructing 10 lakh houses under the Pradhan Mantri Awas Yojana (PMAY) on Oct 2, marking Gandhi Jayanti.
As reported by the Money Control, the funds will be provided in a construction-linked manner, distributed across seven stages. This approach ensures payments are made as construction progresses. The entire construction process is expected to be completed within 18 months. The allocated amount for this phase is ₹1.20 lakh crore, designated for eligible applicants under the scheme.
The PMAY scheme, which aims to offer affordable housing to economically weaker sections, was significantly expanded following Modi’s re-election. The government’s initial Cabinet decision for the third term was to extend housing support to an additional three crore households over the next five years. Of these, two crore houses are planned for rural areas.
The Union Budget for 2024 has earmarked ₹10 lakh crore for the PMAY scheme over the next five years, which includes central assistance of ₹2.2 lakh crore.
This first instalment release is a crucial development in advancing rural housing projects, designed to enhance living standards and address housing shortages in rural regions.