Pradhan Mantri Awas Yojana Urban (PMAY-U)

The Four Original Components of PMAY-U

The original PM Awas Yojana Urban mission didn't offer a single route to a house. It offered four, built around how a family already lived.

Families in slums got In-situ Slum Redevelopment (ISSR), which used the slum land itself as the resource, redeveloping it with private sector participation so residents could be rehoused on the same site they had always occupied, rather than relocated elsewhere in the city.

Families ready to take a home loan got the Credit Linked Subsidy Scheme (CLSS), an interest subsidy on loans for EWS, LIG and MIG households buying or building a house.

Families without land of their own but wanting to buy in could turn to Affordable Housing in Partnership (AHP), where states, Urban Local Bodies and private developers built projects together with central assistance covering part of the cost.

And families who already owned land simply needed help building on it, which is what Beneficiary-led Individual House Construction and Enhancement (BLC) provided directly.

Every statutory town under Census 2011, along with towns notified since, fell under the mission's coverage. Three of the four components ran as a Centrally Sponsored Scheme; CLSS alone ran separately as a Central Sector Scheme, funded entirely by the Centre.

Centre-State Funding Pattern

Central assistance under the mission was never a flat, nationwide number. It moved with the region:

• Most states split the cost 60:40, Centre to State

• North Eastern Region states, Himachal Pradesh, Uttarakhand and Union Territories with a legislature split 90:10

• Union Territories without a legislature had the Centre cover the full cost

This same regional logic, largely unchanged, still governs funding under PMAY-Urban 2.0.

Why Was PMAY-U Revised?

First, the four components hadn't built in a real answer for migrant workers and the urban poor who needed a roof but weren't looking to own one. Second, a fresh cohort of eligible families had emerged beyond what the 2015 estimates had accounted for, and the scheme needed renewed financial firepower to reach them. Both gaps shaped the design of PMAY-U 2.0, cleared by the Cabinet on 9 August 2024.

Nothing built under the original mission was abandoned mid-way. ISSR and CLSS were discontinued as standalone components, but their intent didn't disappear. CLSS's role was absorbed into a redesigned Interest Subsidy Scheme (ISS), and the rental gap ISSR and AHP had never quite closed became its own new vertical, Affordable Rental Housing (ARH).

BLC and AHP continued under their original names, just with updated assistance amounts and eligibility bands. Any house still under construction when the transition happened simply continued to completion, tracked under the new mission's monitoring system rather than restarted from scratch.

PMAY-Urban 2.0: The Four Verticals

PMAY-Urban 2.0 retains the ownership-focused routes of the original mission while adding a dedicated rental housing vertical. The four current verticals are:

A beneficiary can draw benefit from only one vertical at a time. Landless BLC beneficiaries can be granted land rights by their State or UT, and AHP buyers purchasing from private projects receive redeemable housing vouchers.

Under the Interest Subsidy Scheme (ISS), the subsidy applies to loans up to ₹25 lakh for houses valued up to ₹35 lakh, over a tenure of up to 12 years, released in five yearly instalments.

PM Awas Yojana Urban vs PMAY-Urban 2.0

Funding and Governance Under PMAY-U 2.0

The funding structure under PMAY-Urban 2.0 broadly follows the regional pattern of the original mission:

• 60:40 Centre: State for most states

• 90:10 for North Eastern states, Himachal Pradesh, Uttarakhand, Delhi, J&K and Puducherry

• 100:0 for Union Territories without a legislature

ISS lies apart from this entirely, running as a Central Sector Scheme funded fully by the Centre.

There's no fixed target handed down from Delhi. States and UTs assess local demand through their Urban Local Bodies, and proposals move through the State Level Sanctioning and Monitoring Committee, chaired by the Chief Secretary, before the Central Sanctioning and Monitoring Committee (CSMC) releases funds.

PMAY-U 2.0 Eligibility Criteria

The eligibility conditions under PMAY-Urban 2.0 include:

• The household, husband, wife and unmarried children must not own a pucca house anywhere in India.

• Annual household income must fall within the defined band:

  • EWS: Up to ₹3 lakh

  • LIG: ₹3 lakh–₹6 lakh

  • MIG: ₹6 lakh–₹9 lakh

• A beneficiary can avail the benefit of only one vertical.

Coverage spans all statutory towns under Census 2011, towns notified since, and areas under notified planning or development authorities.

PMAY-Urban 2.0 Application Process

Eligible applicants can apply through the PMAY-U 2.0 Unified Web Portal or approach their local Urban Local Body.

The general process is:

1. Register on the PMAY-U 2.0 Unified Web Portal, or approach the local Urban Local Body.

2. Submit household, income and property details for the chosen vertical.

3. Get the details validated by the State, UT or ULB against the eligibility criteria.

4. BLC/AHP applications move through SLSMC to CSMC; ISS applications go directly to the Primary Lending Institution.

5. Disbursement follows in instalments tied to construction progress, tracked through geo-tagging on the Ministry's MIS.

Achievements Under PMAY-U

By the time the Ministry reported to the Rajya Sabha on 27 July 2026, cumulative sanctions across PMAY-U and its successor had reached 127.68 lakh houses, with 121.03 lakh grounded and 99.07 lakh completed and delivered. Almost all of that scale traces back to the original PMAY-U years; PMAY-U 2.0's own sanctions, 16.20 lakh as of that same reply, only began adding to the total more recently.

PMAY-U has crossed a major milestone, with over 1.25 crore houses sanctioned under PMAY-U and PMAY-U 2.0. More than 1 crore houses have been completed and delivered, while 1 crore houses have been allotted to women, either in the name of the female head of the household or through joint ownership.

The 8th Central Sanctioning and Monitoring Committee (CSMC) meeting, held on 6 August 2026, approved over 2.09 lakh additional houses across 16 States and UTs. Of these, around 1.42 lakh houses were sanctioned under the Beneficiary Led Construction (BLC) vertical and 67,045 under the Affordable Housing in Partnership (AHP) vertical.

With the latest approvals, PMAY-U 2.0 has crossed 18.38 lakh sanctioned houses, further expanding the government's ongoing urban housing programme.

Conclusion

PM Awas Yojana Urban established the framework that has shaped Indian urban housing policy for the past decade, with multiple pathways to homeownership, shared funding responsibilities across levels of government, and a demand-driven approach rather than centrally determined targets. PMAY-Urban 2.0 keeps the ownership-focused routes its predecessor offered while adding a dedicated answer for renters, something the original mission never fully solved. The four current verticals, BLC, AHP, Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS), are designed to address different housing needs across EWS/LIG/MIG households. As the original PMAY-U is no longer accepting fresh applications, applicants seeking information on current eligibility and application procedures should refer to the dedicated PMAY-U 2.0 portal and verify the latest status before applying, since sanction figures and state-level terms can change.

FAQs