Govt Approves Construction of 3 Crore Houses Under PMAY in First Cabinet Meeting

11th June 2024- In its first Cabinet meeting chaired by Prime Minister Narendra Modi on Monday, the government approved a significant proposal to provide financial assistance for the construction of three crore rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY).

This decision marks the inaugural action of the newly sworn-in government and aims to address the housing needs of an increasing number of eligible families. The Union Cabinet announced that the extension of assistance will cater to both rural and urban households, emphasizing the ongoing commitment to improving housing conditions.

Since its implementation in 2015-16, the PMAY has completed 4.21 crore houses, providing basic amenities such as toilets, LPG connections, electricity, and tap water to eligible poor families. The new initiative underscores the government’s continued focus on ensuring adequate housing for all.

Comments By Industry Experts

Mr. Pradeep Aggarwal the Founder & Chairman of Signature Global (India) Ltd

“In a visionary move, the newly formed cabinet has approved the construction of an additional 3 crore rural and urban houses under the Pradhan Mantri Awas Yojana (PMAY). This decision reinforces the government’s commitment to “housing for all” and introduces a significant enhancement: a higher eligible carpet area under the PMAY-Urban (PMAY-U) scheme, compared to the earlier Credit Linked Subsidy Scheme (CLSS).
By expanding carpet area eligibility, the government is addressing critical challenges faced by potential homebuyers in the affordable and mid-housing segments. This progressive step is expected to increase home ownership opportunities for urban and rural populations, ensuring broader access to housing and promoting socio-economic stability. The new scheme is poised to make a substantial impact on the housing sector, encouraging developers to prioritize affordable housing projects and ultimately boosting the overall housing supply in the country.”

Mr Rajat Likhyani the Principal Partner at Square Yards

“PMAY has been a crucial initiative in addressing the housing shortage across both urban and rural areas. The scheme offers essential credit-linked subsidies, helping eligible families to achieve homeownership and access basic amenities significantly improving their living conditions. In the last 10 years, the scheme has facilitated the completion of 4.21 crore homes. The Government of India’s recent decision to build an additional 3 crore rural and urban houses is a positive move, further promoting homeownership among economically weaker sections and low-income groups.”

Mr Ravi Shankar Singh the Managing Director at Residential Transaction Services, Colliers India

“The announcement of 3cr additional housing units is a very welcoming initiative. The govt is driving the PM Awas Yojana in the right direction by addressing the housing needs of rural India and at the same time creating employment opportunities in these regions.”