Kerala to roll out second phase of PMAY-U 2.0, covering 30,000 families

Kerala's Local Self Government Department announced that the state cabinet has green-lit the second phase of the Pradhan Mantri Awas Yojana-Urban 2.0, targeting roughly 30,000 families that meet the scheme’s eligibility criteria. A memorandum of understanding will be signed with the Centre to activate the program before the first phase concludes on September 30. The revised central rules allocate a total of Rs 4 lakh per house for homeless beneficiaries, with the Centre providing Rs 1.5 lakh, the state contributing Rs 1 lakh, and the balance of Rs 1.5 lakh split between the municipality and the beneficiary, who must also cover 25 % of project costs.

This funding structure differs from the existing PMAY-Urban LIFE scheme, where the state’s share is Rs 50,000 and the municipality contributes Rs 2 lakh. Implementing PMAY-U 2.0 is intended to prevent the loss of about Rs 450 crore in central assistance that would otherwise be forfeited.