Housing ministry raises EWS housing target under PMAY 2.0 by 350%

Targeted housing under BLC component raised from 111,000 to 500,000 homes in FY27

The Ministry of Housing and Urban Affairs has increased its annual target of houses to be constructed under the beneficiary-led construction (BLC) component of Pradhan Mantri Awas Yojana–Urban (PMAY-U) 2.0 by 350 per cent.

 

According to Budget documents reviewed by Business Standard, the ministry has raised its housing construction target to 500,000 homes in FY27 from 110,000 houses in FY26. The move is expected to benefit 2.93 million family members with dignified living through housing along with basic civic amenities.

 

This follows the increase in the budgetary outlay for PMAY-U 2.0 to Rs 18,625 crore in FY27, a 148 per cent rise from Rs 7,500 crore earmarked as revised estimates (RE) for FY26.

 

Under the BLC vertical of PMAY-U 2.0, financial assistance of up to Rs 2.5 lakh is provided to individual eligible families belonging to the economically weaker section (EWS) category to construct a new pucca house on their own available land.

 

Beneficiaries under this vertical may be allowed to construct all-weather pucca houses with a minimum carpet area of 30 square metres and a maximum of 45 square metres, conforming to building safety and design standards prescribed in the National Building Code (NBC).

 

On the other hand, the ministry has retained its target of constructing EWS houses under the Affordable Housing in Partnership (AHP) component at 150,000 units.

 

Under the AHP model, financial assistance through vouchers is provided to purchase or avail allotted houses in projects constructed by public sector agencies or private developers.

 

Unlike last year, the ministry did not specify a target for the number of houses to be built under affordable rental housing (ARH) models.

 

The Union Housing Ministry’s outcome budget for FY27 stated that no target was shown as projects under ARH take around 36 months for completion. “Accordingly, the target for ARH will be shown post 2026–27,” it added.