The National Real Estate Development Council (NAREDCO) has welcomed the Union Cabinet’s approval of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 scheme.
This significant initiative reflects the government’s dedication to advancing affordable housing in urban areas. With an investment of ₹10 lakh crore and a substantial government subsidy of ₹2.30 lakh crore, the PMAY-U 2.0 Scheme aims to facilitate the construction of one crore houses for urban poor and middle-class families over the next five years.
The PMAY-U 2.0 scheme, with its substantial investment of ₹10 lakh crore and a government subsidy of ₹2.30 lakh crore, demonstrates the government’s strong commitment to addressing the housing needs of our urban population. This comprehensive approach, covering various segments from Economically Weaker Sections to Middle Income Groups, will undoubtedly transform the urban housing landscape of our nation.
The introduction of new components such as Redeemable Housing Vouchers and the Technology Innovation Grant are noteworthy additions to the scheme. These elements will not only make housing more accessible but also promote the adoption of innovative and sustainable construction technologies.
G. Hari Babu, National President of NAREDCO, stated, “The approval of PMAYU 2.0 is a landmark decision that will revolutionize urban housing in India. This scheme’s holistic approach, addressing construction, purchase, and rental housing needs, coupled with its focus on innovation and sustainability, will create a robust and inclusive housing ecosystem. NAREDCO pledges its full support to the government in realizing the objectives of this transformative initiative.”
The PMAY-U 2.0 Scheme includes several key components: Beneficiary-Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and an Interest Subsidy Scheme (ISS). These elements are designed to address various aspects of affordable housing and rental needs. The scheme also introduces an increased Credit Risk Guarantee Fund, from ₹1,000 crore to ₹3,000 crore, to enhance credit risk guarantees for affordable housing loans.
Additionally, the Technology & Innovation Sub-Mission (TISM) will promote modern, green technologies and building materials for faster and higher-quality construction. PMAY-U 2.0 is expected to significantly boost the real estate sector, creating numerous opportunities for developers, contractors, and allied industries. The scheme’s emphasis on public-private partnerships and the involvement of private sector
projects will further stimulate growth and innovation in the industry.