Amitabh Kundu, Arjun Kumar

This article discusses the state of social housing in urban India and assesses the progress of Pradhan Mantri Awas Yojana – Urban (PMAY-U) with a focus on its three Centrally Sponsored Scheme (CSS) verticals. These are In-situ Slum Redevelopment (ISSR), Affordable Housing in Partnership (AHP) and Beneficiary-led Construction or enhancement (BLC).

It attempts to quantify the benefits and costs of these three CSS program verticals under PMAY-U for selected large cities of India and compare their relative advantages, by computing their benefit-cost ratios (BCRs), using alternate rates of discount. Based on these, certain recommendations for the social housing sector in urban India and for PMAY-U have been made to achieve the goals of ‘Housing for All’ by 2022.


The Pradhan Mantri Awas Yojana (PMAY)-Housing for All (Urban) Mission, was launched by the Government of India in June 2015 with a mission to provide Housing for All by 2022, the year when the Nation completes 75 years of its Independence.

The Mission, launched by the Hon’ble Prime Minister of India, seeks to address the housing requirements of all sections of urban poor including homeless population, slum dwellers for more equitable living conditions for all through four programme vertical such as: (i) In-situ Slum Redevelopment (ISSR); (ii) Credit Linked Subsidy Scheme (CLSS); (iii) Affordable Housing in Partnership (AHP); and (iv) Beneficiary-led Construction or enhancement (BLC). The CLSS is the central sector scheme hereas the other three are under the centrally sponsored scheme (CSS) for social housing.

The different categories of beneficiaries under PMAY-U include economically weaker section (EWS) household with income upto Rs. 3 lakh and housing unit size of 30 sqm; and lower income groups (LIG) household with income from Rs. 3-6 lakh and housing unit size of 60 sqm. However, the States/UTs have the flexibility to redefine the annual income and house size criteria as per local needs. For the CLSS vertical of PMAY-U, the benefits have been extended subsequently to middle income groups (MIG) whereby MIG-I & MIG-II are categorized as having annual household income slabs of Rs. 6-12 lakh and Rs. 12-18 lakh respectively.

A technology sub-mission under the Mission has also been devised to promote cost effective and modern building materials and consrtruction technologies.

Assessing the benefits and costs of the program verticals of Pradhan Mantri Awas Yojana (Urban)
Policy Review #HUDCO Golden Jublie 1970-2020 Edition