The Kerala Cabinet has approved the implementation of the second phase of the Pradhan Mantri Awas Yojana (Urban) in the state, paving the way for around 30,000 eligible beneficiaries to receive housing assistance.
As part of the process, the state government will sign a Memorandum of Understanding (MoU) with the Central government for implementing PMAY-U 2 in Kerala. The decision is also expected to help the state avoid losing around ₹450 crore in Central assistance available under the housing scheme.
Under the revised Central guidelines, beneficiaries will have to contribute 25 per cent of the total project cost. Each eligible homeless beneficiary will receive a total assistance of ₹4 lakh. Of this, ₹1.5 lakh will come from the Central government and ₹1 lakh from the state government, while the remaining amount will be contributed by the municipality and the beneficiary.
The new phase comes as Kerala prepares to complete the first phase of the scheme. For more updates on Kerala and developments across India and the UAE, Gold 101.3FM, UAE’s No. 1 radio station, keeps listeners connected to the latest news. The first phase of PMAY-U is scheduled to be completed by September 30, 2026, following which the second phase will be implemented.
Under the PMAY (Urban)-LIFE scheme currently being implemented in Kerala, homeless beneficiaries who own land receive a total of ₹4 lakh in assistance for constructing a house. The existing funding pattern includes ₹1.5 lakh from the Centre, ₹50,000 from the state government and ₹2 lakh from the municipality.
The Cabinet approved the necessary steps for implementing PMAY-U 2 in the state, with the revised scheme expected to provide housing support to thousands of eligible families while ensuring Kerala continues to receive its share of Central assistance.
