Bihar Economic Survey underlines slow progress in PMAY 2.0

Against 6.89 lakh applications received from families seeking permanent homes, the state government has approved only 1.53 lakh houses

The Bihar Economic Survey, tabled in the state legislature on Monday, has highlighted serious shortcomings in the implementation of Pradhan Mantri Awas Yojana (urban) 2.0. Against 6.89 lakh applications received from families seeking permanent homes, the state government has approved only 1.53 lakh houses. The total cost of these approved projects is ₹3,844.75 crore, of which the Centre’s share is ₹2,306.85 crore.

Bihar Economic Survey underlines slow progress in PMAY 2.0

The 20th edition of the survey was presented in the state legislature by state finance minister Brijendra Prasad Yadav on the opening day of the Budget session. Officials cited inadequate funds as the main reason for the slow pace, saying the state simply does not have enough money to clear all eligible applications.

HT Infographics

Launched in September 2024 for a period of five-year, PMAY 2.0 seeks to identify economically weaker families, who could not get houses under other schemes and provide them with pucca houses. Officials said that the gap between demand for houses and approvals is wide in the state. As the people are awaiting approval of their applications, permanent shelter for hundreds of thousands of families remains a far cry. The survey notes that loans under the first instalment have been disbursed for 78% of the approved cases, but the overall numbers fall far short of the applications received.

The survey also notes that the slow pace in approval of the schemes under PMAY 2.0 comes at a time when the state is experiencing rapid growth in urbanisation, which is putting extra load on housing and infrastructure. Officials admit that a large number of eligible families, especially those living in smaller towns and peri-urban areas, are remaining homeless despite applying under the new scheme.

In its bid to improve urbanisation, the state government is going ahead with its plans to develop 11 greenfield townships across Bihar. Each township will cover 750–1,500 acres and will be located near nine divisional headquarters, with additional sites at Sonepur (as an economic hub) and Sitamarhi (as a religious township). These towns will be designed as satellite extensions of major towns with modern amenities, infrastructure and planned layouts modelled on successful township projects in Mumbai, Kolkata and Uttar Pradesh.

The new township projects, officials say, are intended to ease pressure on existing cities. The upcoming townships will be more organised in terms of open spaces with proper roads, water supply, schools and commercial zones. The survey emphasises that these townships will follow sustainable development principles and help accommodate the state’s growing urban population in a structured manner.

To manage rising urbanisation, the government, in partnership with the centrally sponsored AMRUT Mission, has prepared master plans for 43 Tier-I towns, including 37 district headquarters and Patna, Dehri, Forbesganj, Bagaha and Sonepur. Officials of the urban development and housing department (UDHD) said that the Patna Master Plan-2031 is being rolled out in phases, while demarcation of 50 planning areas for Tier-II towns is underway.

The state has notified the Bihar Town Planning Scheme Rules, 2025, and created land banks to unlock land for development, improve infrastructure, and boost land market value through regulated urbanisation. To facilitate development of new townships, a transit-oriented development (TOD) policy has also been prepared to promote mass transit corridors and higher floor area ratio (FAR) along them.

The UDHD has operationalised as many as 25 vending zones by September 2025 to address street vending and traffic congestion, and designated spaces for 1,692 footpath vendors across municipal areas. Besides, permanent vending areas have been created near 34 market places that lack open space.

Under the National Mission for Clean Ganga (NMCG), the UDHD has approved 39 sewerage and sewage treatment schemes, while work on 24 STPs has been completed. The state government is getting central government’s funding support for construction of interception, diversion and riverfront development.