Uttar Pradesh is set to build 5 lakh new homes under PMAY-U 2.0, backed by ₹12,031 crore in central funding. The initiative targets urban poor, women, and marginalized communities, aiming to complete the housing backlog and enhance living standards. With 95% of Phase 1 homes delivered, UP leads in providing affordable, disaster-resilient homes by December 2025.
Uttar Pradesh Accelerates Affordable Housing with 5 Lakh New Homes Under PMAY-U 2.0
Uttar Pradesh has emerged as a frontrunner in India’s mission to provide affordable housing, with the central government sanctioning ₹12,031 crore for the construction of 5 lakh new homes under the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0). This ambitious allocation, announced in July 2025, aims to address the housing needs of urban poor, low-income groups (LIG), and middle-income groups (MIG) across the state’s cities and towns. The initiative builds on the success of PMAY-U Phase 1, where Uttar Pradesh completed over 95% of its sanctioned 17.76 lakh homes by December 2024, setting a national benchmark.
The PMAY-U 2.0 scheme, launched on September 1, 2024, focuses on delivering pucca (permanent) houses equipped with basic amenities like water, electricity, and sanitation. Each eligible family receives financial assistance of up to ₹2.5 lakh, with costs shared between the central and state governments in a 60:40 ratio. Uttar Pradesh’s allocation is part of a broader national goal to construct 1 crore urban homes over five years, emphasizing inclusivity and women’s empowerment. Over 1.25 lakh of the newly approved homes are designated for women, including single women and widows, while 42,400 units are allocated for Scheduled Caste (SC) beneficiaries, 17,574 for Scheduled Tribes (ST), and 1,13,414 for Other Backward Classes (OBC). Additionally, 44 homes have been earmarked for transgender individuals, reinforcing the scheme’s commitment to social equity.
The state government is implementing reforms to accelerate delivery, including increasing the Floor Area Ratio (FAR) for low-income housing projects and providing Transfer of Development Rights (TDR) at no extra cost. These measures aim to streamline construction and ensure affordability. Every house under PMAY-U 2.0 will be geo-tagged and photographed during construction to enhance transparency and curb corruption. The state’s Chief Minister has directed officials to prioritize quality control and speedy completion, with construction set to begin soon across urban centers like Lucknow, Kanpur, Agra, and Varanasi.
Uttar Pradesh’s track record in PMAY-U Phase 1 underscores its capability to execute large-scale housing projects. The state’s focus on marginalized communities is evident, with special provisions for vulnerable groups. Senior citizens over 70 years receive an additional ₹30,000, while widows and single women over 40 are eligible for an extra ₹20,000. The scheme also integrates eco-friendly and disaster-resilient construction technologies, aligning with the Global Housing Technology Challenge – India (GHTC-India) initiated by the Ministry of Housing and Urban Affairs (MoHUA).
The PMAY-U 2.0 initiative is expected to boost urban infrastructure, generate employment, and improve socio-economic conditions for thousands of families. With the deadline for PMAY-U applications extended to December 2025, more urban households can apply for subsidies and housing funds. The state government is collaborating with local authorities to finalize beneficiary lists based on updated surveys, ensuring no eligible family is left behind. Union Minister Manohar Lal Khattar is scheduled to review the scheme’s progress in Uttar Pradesh, signaling strong central oversight.
Disclaimer: This article is based on recent news reports, official statements from the Ministry of Housing and Urban Affairs, and updates from reliable sources such as The Hindu, Economic Times, and MagicBricks. Information is accurate as of September 2, 2025, but may be subject to change as new data emerges. For the latest updates, refer to official PMAY-U portals or government announcements.