No demand from states for PMAY 2.0 as repurposed rental houses remain vacant
A recent report by the Confederation of Indian Industry and real estate consultants Knight Frank released in December 2024 predicted the affordable housing shortage to touch 31.2 million units by 2030.
The Union cabinet had approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 to construct 10 million houses for urban poor and middle-class families in August 2024, but the Centre has not yet received any proposal from states or Union Territories, the Rajya Sabha was informed on Monday.

Replying to a question by SP MP Sanjay Seth, MoS Tokhan Sahu of the ministry of housing and urban affairs (MoHUA) told the Upper House that all the 5,648 existing government-funded homes, converted into affordable rental housing complexes (ARHCs) in different States/UTs, are yet to be occupied.
“So far, no proposal has been submitted by states/UTs under the scheme. However, in-principle approval of more than 6 lakh houses have been accorded for 29 States/UTs who have signed the memorandum of agreement with the ministry,” Sahu said.
Nearly 612,000 houses, out of the 10 million, were already provisionally sanctioned in December 2024. Manohar Lal Khattar, the minister of housing and urban affairs, had then said that an additional 100,000 houses would be pre-approved once the remaining three or four states signed the agreement.
Analysing the expenditure budget presented on February 1, Debarpita Roy, visiting fellow at the Centre for Social and Economic Progress (CSEP), said around 75% of the budgetary provisions for FY26 for urban housing are for the completion of about 3 million houses that have yet to be completed under PMAY-U phase 1.
In another reply to a question asked by AAP MP Ashok Kumar Mittal from Punjab, Khattar said that all the 5,648 existing government-funded houses which were converted into ARHCs in different states/UTs are yet to be utilised.
These houses, spread across eight states and UTs including Chandigarh, Gujarat, Rajasthan, Jammu and Kashmir, and Uttarakhand, were repurposed from unoccupied existing government housing projects under previous schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY).
The ARHC sub-scheme under PMAY was introduced in 2020 as an addition to the existing scheme, in response to the large-scale reverse migration caused by the pandemic. It was also extended in PMAY 2.0.
A recent report by the Confederation of Indian Industry and real estate consultants Knight Frank released in December 2024 predicted the affordable housing shortage to touch 31.2 million units by 2030.