Indian Real Estate

All About Pradhan Mantri Awas Yojana - Urban 2.0(PMAY-U 2.0)


03, December 2025

Pradhan Mantri Awas Yojana(PMAY), the Central Government's ambitious scheme to build houses for all the poor and needy across India was indeed successful.

A new notification has popped up, implying the launch of Pradhan Mantri Awas Yojana(PMAY) phase 2. This phase 2 ambitiously targets constructing over 1 crore new houses in urban areas.

As per the latest report, the 2nd phase of Pradhan Mantri Awas Yojana - Urban is yet to launch soon. As per this phase, the central government continues to build more homes for the poor who plan on settling in the urban region.

Apart from its original mission of offering housing for the needy, the PMAY-U 2.0 also focuses on fostering innovation in the construction industry, thereby increasing the demand for affordable housing across the urban regions in India.

Join us, as we explore the new heights of Pradhan Mantri Awas Yojana - Urban(PMAY-U 2.0). Without further ado, let's move on to it!

Pradhan Mantri Awas Yojana - Urban 2.0

The first phase of PMAY-U made an impression, with a plan to construct 1.14 crore houses for the poor and needy, planning on settling in the urban region in India. About 84 lakhs of houses have already been built, and the remaining are yet to be built.

That's when the new notification came out! The launch of PMAY-U 2.0! Not only just focusing on the housing sector, but the second phase of PM Awas Yojana has also set its spotlight on women's empowerment by ensuring women's property ownership.

As per this initiative of PMAY-U 2.0, the property will be in the name of women or will be joint ownership, but make sure that the woman is involved. Even though that is the case, PM Awas Yojana will be focusing on offering housing for the residents falling under the Economically Weaker Section(EWS), Low Income Group(LIG) as well as Middle Income Group(MIG). Homes for the beneficiaries will be delivered nationwide.

GRC Shreekrish - Homes247.in

PMAY-U 2.0 - Mission Components

The key features of Pradhan Mantri Awas Yojana - Urban 2.0 majorly focus on fostering innovation in the construction industry. Except for the Home Loan Subsidy Scheme(HLSS), all other schemes will be implemented as a centrally sponsored scheme.

PMAY-U 2.0 will be offering flexibility in providing housing, in 4 different variants:

1. Beneficiary led construction(BLC):

As per this, the beneficiaries under EWS and LIG are allowed to construct houses on their own land. The financial provision for the construction will be offered to the beneficiary family by the State or the Union Territory, and the remaining cost will be borne by the beneficiary.

As for landless beneficiaries, the provision will be offered under the particular State or Union Territory for un-transferable land rights (pattas) for the family.

The progress of each house will be effectively monitored through geo-tagging and other digital norms. Free-of-cost statutory approval will also be provided if needed.

2. Affordable Housing in Partnership(AHP)

This ensures that the house for the Low Income Group(LIG) will be built and delivered in the estimated time. The project will only be approved if they are settled on land without any legal issues, with proof of ownership, and with a detailed project report(DPR).

The Affordable Housing in Partnership(AHP+) will only be implemented on free land. AHP projects will offer livelihood opportunities, as they promote shelter and work, by implementing adequate social infrastructure, including health care, educational institutes, and other recreational facilities along with affordable housing.

Under the project, the tenable slums will be upgraded to housing and infrastructure. Re-development will also be implemented in In-Situ Slum Redevelopment (issr).

Under the AHP+ projects, the beneficiaries will be provided with redeemable vouchers for purchasing a house from EWS or LIG criteria.

3. Interest Subsidy Scheme(ISS)

Under the Interest Subsidy Scheme, the beneficiaries will be provided with subsidies on home loans for EWS, LIG, and MIG families. The subsidy will be provided in yearly installments for a period of 3 years. A maximum of Rs 2.10 lakhs will be provided with a home loan tenure above 5 years.

The beneficiaries under EWS and LIG will be receiving a subsidy for loans up to 6 lakhs and 9 lakhs will be provided for MIG families for 120 sqm house sizes.

The subsidy will be only eligible for a home loan amounting to 25 lakhs and a home value of up to 35 lakhs.

4. Affordable Rental Housing(ARH)

Under the initiative of Affordable Rental Housing(ARH), adequate rental housing will be offered for urban migrants, the homeless, destitute, industrial workers, working women, single women, construction workers, students, long-term tourists, contractual employees, and professionals. Hygienic living space will be offered for urban dwellers.

Public Sector Undertaking(PSU) will be used for the construction of these affordable rental housing. The rent amount will be decided by the local authority through a local survey. The rental house will be owned and operated by ULBs or any private or public entities. Affordable Rental Housing(ARH) will be implemented in 2 significant models.

PMAY-U 2.0 - Technical Innovation Grand(TIG)

Every project under PMAY-U 2.0, including BLC, AHP, ISS, and ARH will be constructed using resource-efficient, climate-responsive, disaster-resilient, eco-friendly, and sustainable building materials, pursuing the vision of Honorable Prime Minister, Narendra Modi, to foster innovation in construction industry.

TIG is a financial grand that will be added to the funding of existing Pradhan Mantri Awas Yojana. TIG will be implemented at the rate of Rs 1,000 per build-up area.

Apart from all that, a Management Information System(MIS), is a robust IT platform to monitor and evaluate the progress of the scheme. Support and training will be offered for the users of MIS, including online tutorials, help desk support as well a user manual in the local language will also be provided.

Representing the pivotal advancement in the Indian housing sector, Pradhan Mantri Awas Yojana - Urban 2.0(PMAY-U 2.0) is estimated to promote social empowerment, foster innovation in the construction sector as well as drive the economic growth of India.

Residences who are seeking to apply for the P M Awas Yojana or know how to track the progress of PMAY can check out our blogs!

So, that's it, folks. These are all the latest news about Pradhan Mantri Awas Yojana(PMAY). Let us know your thoughts on the matter in the comment section below!

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GRC Shreekrish - Homes247.in

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