In first decision, Cabinet nod to 3 crore rural, urban houses under Pradhan Mantri Awas Yojana

In a post on X, Modi said the Cabinet’s decision is a big step towards promoting dignified life and ease of living for crores of the countrymen. “Our government has today decided to expand the Pradhan Mantri Awas Yojana and build 3 crore new houses in villages and cities. This decision also reflects our commitment to make the living standards of the people easier. This will not only fulfil the need of people for houses, but will also provide them a quality life. The expansion of PMAY also brings out our determination for development of all and social justice (Sabka Vikas aur Samaj Kalyan),” he said.

The Indian Express had published a report on Monday that a proposal of two crore new PMAY-G houses and increase in the financial assistance to the beneficiaries is on the Union Cabinet’s table and is likely to be approved.

The PMO said after being sworn in as the Prime Minister for the 3rd time, Modi signed his first file authorising the release of 17th instalment of PM Kisan Nidhi.

“This will benefit 9.3 crore farmers and distribute around Rs 20,000 crore,” the PMO said in a statement. As per the statement, Modi said, “Ours is a government fully committed to kisan kalyan. It is therefore fitting that the first file signed after taking charge is related to farmer welfare. We want to keep working even more for the farmers and the agriculture sector in the times to come.”

Both the decisions were taken before the official announcement of portfolios to newly inducted ministers, showing the Prime Minister’s imprimatur on issues related to farmers and the poor. Later in the evening, Union Minister Shivraj Singh was given the agriculture and rural development portfolios.

Under the PMAY-G, each beneficiary gets funds up to Rs 1.2 lakh in the plains and Rs 1.3 lakh in hilly states, difficult areas, and tribal and backward districts under the Integrated Action Plan (IAP). It is also learnt that the Centre has decided to increase the assistance provided to the beneficiaries under the PMAY-G by about 50 per cent. The sources said the Centre has decided to increase the cost of construction of the PMAY-G house from existing Rs 1.2 lakh to Rs 1.8 lakh in the plains and Rs 1.3 lakh to Rs 2 lakh in the hilly areas.

These additional 2 crore PMAY-G houses will be over and above the 2.95 crore houses sanctioned under the rural scheme since its inception in 2016. Of these 2.95 crore, 2.61 crore have been built under the PMAY-G till date.

The Centre and states share expenses in 60:40 ratio in case of plain areas, and in 90:10 ratio for northeastern states, two Himalayan states and the UT of Jammu and Kashmir. The Centre bears 100 per cent cost in case of other Union Territories, including the UT of Ladakh.

Presenting the Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman had announced that 2 crore more houses will be built under PMAY-G in the next five years.

In her budget speech 2024-25, Sitharaman said despite the challenges due to Covid-19, implementation of PM Awas Yojana (Gramin) continued and the government was close to achieving the target of 3 crore houses. “Two crore more houses will be taken up in the next five years to meet the requirement arising from increase in the number of families,” she had announced.