Parliament Question: Construction Cost under PMAY-G

GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT LOK SABHA UNSTARRED QUESTION NO. 5062 ANSWERED ON 24/03/2026 CONSTRUCTION COST UNDER PMAY-G 5062. Shri Rajmohan Unnithan: Will the Minister of RURAL DEVELOPMENT be pleased to state: (a) whether over three crore houses have been constructed under Pradhan Mantri Awas Yojana-Gramin (PMAY-G), if so, the details thereof; (b) whether the Rs. 75,000 subsidy adequately reflects higher construction costs in hilly and coastal terrains, if so, the details thereof; (c) whether the Government has reviewed the adequacy of PMAY unit cost in States with hilly and coastal terrains where construction expenses are significantly higher, State-wise; (d) whether representations from Kerala regarding revision of central assistance have been examined, if so, the details thereof; (e) whether the surveys of beneficiary satisfaction has been reviewed and indicated funding gaps; and (f) if so, the steps taken or proposed to ensure affordable and durable housing for the rural poor? ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (DR. CHANDRA SEKHAR PEMMASANI) (a): In order to achieve the objective of "Housing for All" in rural areas, the Ministry of Rural Development is implementing Pradhan Mantri Awaas Yojana- Gramin (PMAY-G) with effect from 1st April 2016 to provide assistance to 4.95 crore eligible rural households, with basic amenities, by March 2029. As on 19.03.2026, a cumulative target of 4.15 crore houses have been allotted to States/UTs out of which 3.91 crore houses have been sanctioned and 2.98 crore houses have been completed. Page 1 of 4(b) to (f): Financial assistance under PMAY-G is provided at unit assistance of Rs.1.20 lakh in plain areas and Rs.1.30 lakh in North- Eastern Region States and Hill States of Himachal Pradesh, Uttarakhand, Union Territories of Jammu & Kashmir and Ladakh. Further, the cost of unit assistance is being shared between Central and State Governments in the ratio of 60:40 in plain areas and 90:10 for North-Eastern States, 2 Hill States (Himachal Pradesh and Uttarakhand) & UT of Jammu and Kashmir. In respect of other Union Territories, 100% cost is borne by the Government of India. Under the PMAY-G, in addition to the unit assistance the beneficiaries are facilitated with 90/95 person days of unskilled labour wages through mandatory convergence with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Support of Rs. 12,000 for construction of toilet is also provided through Swacch Bharat Mission - Gramin (SBM-G), MGNREGS or any other dedicated source of funding. The PMAY-G converges with various Government programmes to provide benefits of piped drinking water, electricity connection, LPG gas connection, solar lanterns and cleaner cooking energy, solar roof top etc. to the beneficiaries. In this regard, the Union Cabinet had approved the implementation of the PMAY-G during FY 2024-25 to 2028-29 with existing unit assistance for construction of 2 crore additional houses. There is no proposal, at present, to revise the unit cost. A proposal was submitted by the Local Self Government Department, Government of Kerala for revising the unit cost provided under the PMAY-G to Rs. 4 lakh. These and other suggestions for revising the unit cost were examined in the Ministry. In this regard, the Union Cabinet had approved the implementation of the PMAY-G during FY 2024-25 to 2028-29 with existing unit assistance for construction of 2 crore additional houses. The Ministry of Rural Development had communicated the modifications in the scheme for implementation of the next phase of the PMAY-G (2024-25 to 2028- 29) as approved by the Union Cabinet, including the unit assistance under the scheme to all States/UTs vide letter dated 14 August, 2024. The PMAY-G has had a significant positive impact on rural India by improving access to affordable housing and had played a key role in transforming the rural housing landscape, reducing poverty, improving living standards, and fostering social and economic development in rural India. The PMAY-G has also been evaluated through various Independent institutes such as National Institute of Public Finance and Policy, NITI Aayog, National Institute of Rural Page 2 of 4Development & Panchayati Raj, etc. The details of studies conducted for evaluation of the scheme are as under :- I. “Evaluation of Governance Parameters of Pradhan Mantri Awaas Yojana – Gramin” by National Institute of Public Finance and Policy (NIPFP) A three phased study on "Evaluation of Governance Parameters of Pradhan Mantri Awaas Yojana - Gramin" was conducted by NIPFP which also included impact assessment of Direct Benefit Transfer in reduction of leakages. The main findings of the evaluation report are as under: i. Average number of days taken for completion of PMAY-G houses was 314 days which is reduced to 114 days in 2017-18. ii. Increased demand for the construction-related materials has generated additional jobs in the economy. iii. There is a significant increase in the mean expenditures which is mostly driven by an increased expenditure on food items post- PMAY-G as compared to the pre-PMAY-G house indicating an improved living standard. iv. A considerable reduction in open defecation post-PMAY-G house has been observed due to construction of toilets leading to improved health status of the PMAY-G household members. v. There has been a significant increase in the use of LPG gas among PMAY-G households. II. “Impact Assessment of PMAY-G” by National Institute of Rural Development and Panchayati Raj The study was conducted by NIRD to assess to what extent were the program objectives met with regard to improving the physical conditions of the target population; and socio-economic improvements experienced by the target population, as a result of owning a new house. The main findings of the evaluation report are as under: i. PMAY-G house has decreased the burden of house maintenance. ii. PMAY-G has made significant impact on the lives of beneficiaries – both in terms of physical facilities provided and subject well-being. iii. PMAY-G have slightly reduced congestion in houses by providing two or more rooms. iv. On indicators such as social status, self-worth, confidence level, feeling of ownership, feeling of safety & security, self- perceived improvement in health, overall quality of life, and satisfaction about the new house, PMAY-G beneficiaries feel Page 3 of 4much better, compared to the beneficiaries who are waitlisted under PMAY-G i.e. the beneficiaries who have not yet received the PMAY-G house. III. NITI Aayog – “Evaluation of CSS Scheme – Rural Development Sector” in respect of PMAY-G - 2020-21: Under the evaluation study sponsored by Development Monitoring and Evaluation Office (DMEO) of NITI Aayog, the main findings are as under: i. Ease of living of beneficiaries is enhanced due to construction of the house. It has led improvements in standard of living with construction of house. ii. PMAY-G has been able to ensure efficient use of technology for smooth implementation of scheme. Geo-tagging of houses, house quality review module, tech-savvy financial modules leverage quite well on technology. iii. Gender Mainstreaming is actively encouraged under PMAY-G. Providing house in the name of female beneficiaries, allocation of house to transgender people, capacity building of women to become Awaas Mitras contribute towards gender mainstreaming within the scheme. iv. Satisfaction of beneficiaries towards the application process was positive, with significant assistance and support provided. ***** Page 4 of 4