In a significant move aimed at enhancing rural housing infrastructure, the Union Cabinet has approved the construction of 20 million new houses under the Pradhan Mantri Awas Yojana (PMAY) — Grameen scheme for the fiscal years 2025 to 2028. This ambitious initiative reflects the government's ongoing commitment to improving living conditions in rural areas across India.

The approved financial assistance per unit will remain at US$ 1,429 (Rs. 1,20,000) for houses in plain areas and US$ 1,548 (Rs. 1,30,000) for those in hilly regions. Despite proposals for an increase in assistance due to rising construction costs—suggested adjustments to US$ 2,382 (Rs. 2,00,000) for plain areas and US$ 2,620 (Rs. 2,20,000) for hilly regions—this increase was not approved by the Cabinet.

The new initiative will build upon the previous success of the scheme, which has already facilitated the construction of nearly 30 million houses over the past decade during the Modi government’s tenure. This continuation of efforts highlights the government's commitment to addressing rural housing needs and improving infrastructure in underserved areas.

A substantial financial outlay of US$ 36.77 billion (Rs. 3.06 trillion) has been earmarked for this project over the next five years (FY25 to FY29). This budget includes a central share of US$ 24.63 billion (Rs. 2.05 trillion) and a state share of US$ 12.02 billion (Rs. One trillion). This funding is designed to support the extensive construction plans and ensure that the new housing units meet the necessary standards for quality and durability.

The PMAY-Grameen scheme aims to provide affordable and quality housing to rural families, which is crucial for improving living conditions and promoting socio-economic development in India's rural areas. The decision underscores the government’s focus on expanding housing infrastructure while balancing financial considerations and construction challenges.

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