Pradhan Mantri Awas Yojana : Centre Considering Tweaks to PMAY(U) Income Criteria

The Centre is reportedly mulling a tweak in the income criteria for middle-income groups (MIGs) to qualify for housing assistance in urban areas under the Pradhan Mantri Awas Yojana (Urban).

The change is expected to be part of the 2024-25 budget, according to a TOI report.

PMAY(U) classifies MIG households into two brackets: MIG-I, with an annual income between Rs 6 lakh and Rs 12 lakh, and MIG-II, with an annual income between Rs 12 lakh and Rs 18 lakh.

The new proposal, the report suggests, could see the two categories being merged into a single MIG category.

In its first Cabinet meeting, the government approved financial assistance to build one crore houses in urban areas and two crore in rural areas over the next five years.

The Pradhan Mantri Awas Yojana (PMAY) is a key housing subsidy scheme launched in 2015 to provide affordable housing to economically weaker sections and lower-income groups. PMAY has two parts: PMAY-U for urban areas and PMAY-G for rural areas. PMAY-U addresses urban housing needs, while PMAY-G/R focuses on rural housing.

PMAY (Urban), initiated on June 25, 2015, offers central assistance to states, union territories, and central nodal agencies to meet the demand for about 1.12 crore houses. Under PMAY-U, the maximum carpet area for houses for the Economically Weaker Section (EWS) is 30 sq. m, with flexibility for states to increase this size with ministry approval.

A notable feature of PMAY-U is its emphasis on empowering women in the EWS and LIG categories by mandating that the house be owned or co-owned by the female head of the family.

PM Modi recently announced that the new Cabinet’s first decision is to expand PMAY and build 3 crore new houses in both villages and cities, promoting a dignified life and ease of living for millions. This move reflects the government’s commitment to improving living standards and achieving social justice (Sabka Vikas aur Samaj Kalyan).

Eligibility for PMAY requires that the beneficiary family does not own a pucca house anywhere in India, has not received central assistance under any housing scheme, and has not availed of a PMAY-CLSS subsidy.

The scheme is divided into income categories with specific criteria:

• EWS: Annual income up to ₹3 lakh, house size up to 30 sq. m.
• LIG: Annual income between ₹3 lakh and ₹6 lakh, house size up to 60 sq. m.
• MIG I: Annual income between ₹6 lakh and ₹12 lakh, house size up to 160 sq. m.
• MIG II: Annual income between ₹12 lakh and ₹18 lakh, house size up to 200 sq. m.

Required documents for PMAY application include identity proof, address proof, income proof, property-related documents, category proof (if applicable), and a consent form for Aadhaar-linked bank accounts for Direct Benefit Transfer (DBT).

The application process involves:

• Identifying your eligibility category.
• Visiting the official PMAY website (pmaymis.gov.in) and selecting “Citizen Assessment.”
• Entering Aadhaar details and filling out the application form with required documents.
• Tracking the application status on the PMAY website.
• Once approved, beneficiaries can receive home loan subsidies, assistance for house construction or enhancement, and access to affordable housing units.