PMAY-U 2.0 in Kerala: Who gets Rs 4 lakh housing assistance and how it is funded
For families in Kerala who are eligible for government housing assistance, the next phase of the Centre’s urban housing scheme is set to bring a fresh round of support.Around 30,000 eligible beneficiaries in the state will be covered under the second phase of the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0), according to the office of Local Self Government Department Minister K M Shaji.The Kerala government’s Cabinet has approved implementation of PMAY-U 2.0 in the state based on the prescribed eligibility criteria.The state is now set to sign a memorandum of understanding (MoU) with the Centre for implementing the scheme, the minister’s office said.
How much housing assistance will beneficiaries get?
Under the revised Central guidelines, the total assistance for a homeless beneficiary will be Rs 4 lakh per house.The funding will be divided between the Centre, state government, municipality and beneficiary.
| Contributor | Amount |
| Centre | Rs 1.50 lakh |
| Kerala government | Rs 1 lakh |
| Municipality + beneficiary | Rs 1.50 lakh |
| Total | Rs 4 lakh |
The state government will provide Rs 1 lakh for each beneficiary, while the Centre will contribute Rs 1.50 lakh. The remaining Rs 1.50 lakh will have to be borne by the municipality and the beneficiary, according to the minister’s office.The revised Central guidelines also require the beneficiary to bear 25% of the total project cost.
How is the funding different under the existing scheme?
Kerala is currently implementing the PMAY-Urban LIFE scheme, under which homeless beneficiaries who own land receive Rs 4 lakh in total assistance per house.Under the existing arrangement, the funding is divided as follows:
- Centre: Rs 1.50 lakh
- State government: Rs 50,000
- Municipality: Rs 2 lakh
- Total: Rs 4 lakh
The funding structure under PMAY-U 2.0 therefore changes the contribution made by the state and municipality, while introducing a beneficiary contribution under the revised Central guidelines.
Why is Kerala moving to the second phase?
The state government is signing the MoU with the Centre to ensure Kerala does not lose Rs 450 crore in Central assistance that would otherwise be available if the scheme is not implemented in the state, according to the statement.The Cabinet approved steps to begin the second phase as the first phase is scheduled to be completed by September 30.The second phase will cover around 30,000 eligible beneficiaries, subject to the prescribed eligibility criteria.
