Centre Releases Over Rs 10,000 Crore Under PMAY Gramin To Fast Track Rural Housing

The Union government has released over Rs 10,000 crore as the first instalment under Pradhan Mantri Awaas Yojana Gramin, giving fresh momentum to its flagship rural housing scheme. Rural Development Minister Shivraj Singh Chouhan announced that the funds would support construction and completion of houses for eligible rural households across 12 states, under the expanded PMAY G mandate for 2024 25 to 2028 29. The tranche comes as the Centre moves to build an additional 2 crore houses under PMAY Gramin over the next five years.

What The New Release Covers

As per the announcement, the more than Rs 10,000 crore central share released under PMAY Gramin is meant to help states meet existing liabilities and ramp up new sanctions and instalment releases to beneficiaries. Under the scheme, each eligible rural household receives Rs 1.20 lakh in plain areas and Rs 1.30 lakh in hilly and North Eastern states to construct a pucca house with basic amenities. The Centre bears 90 per cent of the cost in North Eastern and Himalayan states and 60 per cent in other states, while Union Territories without legislatures are fully funded by the Centre.

PMAY Gramin’s Expansion Plan

Since PMAY Gramin began in April 2016, the Centre has released over Rs 2.49 lakh crore as central share to states and Union Territories, helping construct nearly 2.90 crore rural houses against the earlier target of 2.95 crore. In March 2024, the Union Cabinet approved extending PMAY Gramin till 2028 29, with a plan to build 2 crore additional houses at an estimated outlay of Rs 3.06 lakh crore. The latest Rs 10,000 crore plus release is part of that multi year expansion, designed to keep cash flows steady as states identify and support beneficiaries from updated survey lists.

Beyond House Construction: Convergence And Livelihoods

PMAY Gramin is designed to converge with other schemes to create a more complete upgrade in living standards. Beneficiaries are entitled to 90 to 95 days of unskilled wage employment under MGNREGS for house construction, and an additional Rs 12,000 support for building toilets through Swachh Bharat Mission Gramin or other funds. Many states also link PMAY Gramin houses with electricity connections, LPG under Ujjwala and drinking water schemes, turning the housing push into a broader rural infrastructure and livelihoods intervention.

Rural Housing Fund Flow Highlights

• Over Rs 10,000 crore has been released as the first central instalment under PMAY Gramin to support rural housing in 12 states.
• Unit assistance per beneficiary is Rs 1.20 lakh in plain areas and Rs 1.30 lakh in hilly and North Eastern states.
• Centre state funding pattern is 90:10 for North Eastern and Himalayan states, 60:40 for others, and 100 per cent central funding for UTs without legislatures.
• Since 2016, the Centre has released more than Rs 2.49 lakh crore under PMAY Gramin and construction of about 2.90 crore houses has been completed.
• Cabinet has cleared construction of an additional 2 crore rural houses under PMAY Gramin during 2024 25 to 2028 29 with an outlay of Rs 3.06 lakh crore.
• Beneficiaries also receive MGNREGS wage days and toilet construction support, integrating housing with employment and sanitation goals.

Sources: Economic Times