Cabinet Approves PMAY-Urban Phase 3 with Rs 2.5 Lakh Crore Outlay
The Union Cabinet sanctioned Pradhan Mantri Awas Yojana - Urban (PMAY-U) 3.0, aiming to construct an additional 30 lakh affordable houses with a budget of Rs 2.5 lakh crore over five years.
The Scheme Approval
The Union Cabinet chaired by the Prime Minister approved the third phase of the Pradhan Mantri Awas Yojana - Urban (PMAY-U 3.0) on June 9, 2026. The new phase will run for five years (FY2026-27 to FY2030-31) and aims to construct an additional 30 lakh (3 million) affordable houses across urban India.
Background & Innovations
Launched originally in June 2015, PMAY-U has been instrumental in addressing the urban housing shortage among the EWS, LIG, and MIG categories. Phase 3 introduces a heavily enhanced Credit-Linked Subsidy Scheme (CLSS) cap for middle-income groups and mandates the integration of green building technologies and disaster-resilient structural designs. It also focuses specifically on rehabilitating slum dwellers in metropolitan areas.
Key Statistics & Financials
- Total Financial Outlay: Rs 2.5 Lakh Crore
- Central Assistance Component: Rs 1.1 Lakh Crore
- Target Houses: 30 Lakh units
- Implementation Period: FY 2026-27 to FY 2030-31
- Employment Generation: Projected to create 1.5 crore direct and indirect jobs.
Static GK & Related Facts
- Nodal Ministry: Ministry of Housing and Urban Affairs (MoHUA).
- CLSS: Credit Linked Subsidy Scheme provides interest subvention on home loans for eligible beneficiaries.
- Global Housing Technology Challenge (GHTC-India): An initiative linked with PMAY to identify and mainstream proven, sustainable, and green construction technologies.
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