Cabinet approves construction of 20 million new houses in rural areas

The Union cabinet has approved the construction of 20 million new houses in rural areas under the Pradhan Mantri Awas Yojana (PMAY) — Grameen for the fiscal years 2025 to 2028. The assistance per unit will remain at US$ 1,429 (Rs. 1,20,000) for plain areas and US$ 1,548 (Rs. 1,30,000) for hilly regions.

There was an earlier proposal to increase the assistance to US$ 2,382 (Rs. 2,00,000) in plain areas and US$ 2,620 (Rs. 2,20,000) in hilly regions due to rising construction costs, but this was not approved. This new initiative will be in addition to the nearly 30 million houses built over the past decade during the Modi government's tenure. A total financial outlay of US$ 36.77 billion (Rs. 3.06 trillion) has been approved for rural housing from FY25 to FY29, which 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).

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