PM announces new housing schemes for poor under PMAY on 31st December 2016 New Years Eve

PM, Shri Narendra Modi has given following benefits to poor people under existing PMAY(Pradhan Mantri Awas Yojna):

For houses of value upto Rs 9 lakh -4% rebate in loan

For houses of value upto Rs 12 Lakh-3% rebate in loan

2 Lacs-3% rebate in loan for extension

PMAY targets changed-33% increase over existing targets

The schemes announced under PMAY by Shri Narendra Modi on 31 december 2016 are not very big in nature and major benefit would have been a discount on principal amount ie. if a person gets loans under PMAY for say 9 Lakh Rupess, his 4 Lakh rupees are funded by government.


 PMAY-G aims to provide a pucca house with basic amenities to all houseless  households and households living in kutcha and dilapidated house by 2022. The immediate objective is to cover 1.00 Crore households living in kutcha house/dilapidated houses in three years from 2016-17 to 2018-19 and ensure construction of quality houses, using local materials, designs and masons specially trained in quality workmanship. For houses to become homes, adequate care for adopting a habitat approach through convergence is proposed.



  1. Providing assistance for construction of 1.00 crore houses in rural areas over the period of 3 years from 2016-17 to 2018-19.
  2. The minimum unit (house) size enhanced from the existing 20 to 25 including a dedicated area for hygienic cooking.
  3. Enhancement of unit assistance from Rs. 70,000 to Rs. 1.20 lakh in plains and from Rs 75,000 to Rs.1.30 lakh in hilly states, difficult areas and IAP districts.
  4. The cost of unit (house) assistance is to be shared between central and state governments in the ratio 60:40 in plain areas and 90:10 for north-eastern and hilly states.
  5. Provision of toilets at Rs. 12000/- and 90/95 days of unskilled wage labour under MGNREGA over and above the unit cost.
  6. Identification of beneficiaries using SECC-2011 data. The identification and selection of the beneficiaries shall be done by the community through the Gram Sabha, from the SECC 2011 list, based on the housing deficiency and other social deprivation parameters.
  7. Setting up of National Technical Support Agency at national level to provide technical support in achieving the target set under the project. The beneficiaries of PMAY-G in addition to being provided financial assistance shall also be offered technical assistance in the construction of the house.
  8. If the beneficiary so chooses, he/she will be facilitated to avail loan from Financial Institutions for an amount of upto Rs 70,000.
  9. Meeting the additional financial requirement by borrowing through National Bank for Agriculture and Rural Development (NABARD) to be amortised through budgetary grant after 2022.
  10. Special Projects to be sanctioned to states based on situational exigencies and special needs.
  11. Use of effective Convergence for provision of electricity, piped drinking water facility, rain water harvesting, LPG gas connection under UJJWAL scheme, solar initiatives, backyard fruit plants, poultry, goatery, dairy shed, solid and liquid waste management etc.
  12. All payments through DBT to beneficiary’s Bank/Post office accounts registered in AwaasSoft MIS.
  13. Special module for orientation of beneficiaries for demystifying concepts of construction costs and process.
  14. Specially designed mason training certificates proforma on site to improve quality of homes and enhance skills of participants.
  15. Creating menu of housing designs based on local typologies incorporating local materials, traditional knowledge and aesthetics.
  16. Saturation approach in housing provision using Gram Panchayat, block or District as unit, wherever possible.



Moving away from BPL list, the universe of eligible beneficiaries under PMAY (G) will include all the houseless and households living in zero, one or two room kucha houses as per SECC data, subject to the exclusion process described below:


Step 1: Exclusion of pucca houses- All households living in houses with pucca roof and/or pucca wall  and households living in houses with more than 2 rooms are filtered out.

Step 2: Automatic Exclusion– From the remaining set of households, all households fulfilling any one of the 13 parameters listed below are automatically excluded:-

  1. Motorised two/three/four wheeler/ fishing boat
  2. Mechanised three/ four wheeler agricultural equipment
  3. Kisan Credit Card with credit limit of Rs.50,000 or above
  4. Household with any member as a Government employee
  5. Households with non-agricultural enterprises registered with the Government
  6. Any member of the family earning more than Rs.10,000 per month
  7. Paying income tax
  8. Paying professional tax
  9. Own a refrigerator
  10. Own landline phone
  11. Own 2.5 acres or more of irrigated land with at least one irrigation equipment
  12. 5 acres or more of irrigated land for two or more crop seasons
  13. Owning at least 7.5 acres of land or more with at least one irrigation equipment


  1. Households without shelter
  2. Destitute / living on alms
  3. Manual scavengers
  4. Primitive Tribal Groups
  5. Legally released bonded labourer

Priority will first be assigned on the basis of parameters reflecting housing deprivation in each category viz., SC/ST, Minorities and Others. To begin with, households will be prioritized based on houselessness followed by the number of rooms; zero, one and two rooms, in that order. In a particular social category viz., SC/ST, Minorities and Others, households which are houseless or living in houses with lower number of rooms shall not be ranked below households living in houses with higher number of rooms.

Within the above priority groups, households that fulfill the criteria of automatic inclusion, as defined in SECC (criteria elaborated above), will be further elevated. Automatically included households shall not rank lower than other households within a priority group. Inter se priority within the two sub groups viz. households which are automatically included and otherwise, will be determined based on their cumulative deprivation scores. The scores will be calculated from the socio economic parameters given below with each having equal weight.

  1. Households with no adult member between age 16 to 59
  2. Female headed households with no adult male member between age 16 to 59
  • Households with no literate adult above 25 years
  1. Households with any disabled member and no able bodied adult member
  2. Landless Households deriving the major part of their income from manual casual labour

The lists will be circulated to the concerned Gram Panchayats for verification.Post verification, once the lists have been made available by the Gram Sabha, the BDO or any block level official, referred to as Competent Authority hereinafter, will ensure that the lists are widely publicized within the Gram Panchayat for a minimum period of seven days. Further, he/she will be responsible for ensuring that the Gram Sabha resolution along with the above list are entered on AwaasSoft.

After the lists have been suitably publicized for seven days, a window period of fifteen days would be provided for submission of complaints regarding deletion or change in ranking without following due procedure.

 The Appellate Committee will then publish the Gram Panchayat wise final priority list for each category after ensuring the ranking is complete and each household has been assigned a distinct rank. The list will be published on the notice board of the Gram Panchayat and advertised widely. The priority list will also be entered on the website of PMAY.


Once targets are communicated by the Ministry, the State/UT government shall distribute category wise targets to respective Districts and enter the same on AwaasSoft. While distributing targets priority may be accorded to Gram Panchayats covered under SAGY, Rurban Cluster and where strong social capital has been developed through women Self  Help Groups under DAY-NRLM. Priority may also be accorded to Open Defecation Free Gram Panchayats in adoption of saturation approach for housing. The annual select list shall begin with the top households in the approved priority list and be restricted to the target assigned for each category to the Gram Panchayat for that year.

The Annual Select list shall be widely disseminated including in print and electronic media, and through wall paintings in the village.

Source: Internet and Government Websites

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