New Delhi: A parliamentary standing committee has flagged high inflation to recommend that central assistance be increased for the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 and stated that it is difficult for low income, middle income and economically weaker sections to purchase houses even under the scheme. It has also recommended the introduction of new, direct employment-generating schemes to address urban unemployment and flagged the underutilisation of funds under the Swachh Bharat Mission (Urban) (SBM(U)).
The parliamentary standing committee on housing and urban affairs headed by Telugu Desam Party (TDP) MP Magunta Sreenivasulu Reddy presented its third report on the Demand for Grants 2025-26 to the Lok Sabha on Wednesday (March 12).
Due to inflation, purchasing house difficult even under PMAY-U
The committee said that while it is aware that land and colonisation are state subjects, it is “concerned that post-COVID inflation has significantly increased the cost of construction materials and it would clearly be difficult for the intended beneficiaries who are EWS, LIG and MIG households with annual income up to Rs 3 lakh, Rs 3-6 lakh and Rs 6-9 lakh, respectively to afford to purchase a house in an urban area even under PMAY-U.”
The committee highlighted that since the maximum share of the cost of construction of the house is borne by the beneficiaries, finding investors may also be difficult under the Affordable Housing in Partnership (AHP) vertical of the scheme.
“In view of this, the committee strongly feels that central assistance per dwelling unit under Affordable Housing in Partnership (AHP) vertical need to be revised proportionally under PMAY-U 2.0 to reflect the increased construction costs and also to ensure the successful implementation of the scheme,” it said.
Under the scheme central assistance of Rs 1.5 lakh per house is provided under Beneficiary Led Construction (BLC) and AHP verticals. A minimum of Rs 1 lakh has been made mandatory for all major states under PMAY-U 2.0 to each beneficiary, thereby, in effect, each beneficiary will get Rs 2.5 lakh. Apart from the minimum state share, the state governments may also provide additional top-up share to increase affordability.
The committee also said that updated data on the number of people who are homeless is crucial for proper implementation of the scheme, as the current data is of the 2011 census.
It recommended that the ministry “conduct a fresh and comprehensive survey to ascertain the exact number of homeless individuals so that the objective of ‘Housing for all’ can be achieved through the revamped PMAY-U 2.0.”
Urban unemployment
The committee said that with the end of the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) in 2024, there are no specific schemes for urban employment and recommended that new direct employment generating schemes are required to be launched to address urban unemployment.
The report said that “with the increasing urban population, unemployment is also expected to rise.”
“The complete revocation of funds for the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) has exacerbated this issue. The committee is also concerned about the skill centres, self-help groups and homeless centres that were running with the support of DAY-NULM,” the report added.
The committee recommended that the ministry should relaunch the mission without further delay and “introduce new, direct employment-generating schemes to address urban unemployment.”
Swachh Bharat funds underutilised
The committee report has stated that central share of Rs 30,000 crore is yet to be utilised under SBM(U) 2.0 which is ending in 2026 and recommended that the ministry must ensure that all funds allocated under BE 2025-26 are fully utilised and targets set are fully achieved to obtain the wider objectives of Swachh Bharat.
“The committee has noted that since the launch of SBM(U) 2.0, against the proposed central share of Rs 36,465 crore, as on January, 2025 the total actual expenditure under SBM(U) 2.0 stands at Rs 5,601.35 crore only,” the report said.
