Executive Summary:
The Ministry of Rural Development is implementing the Pradhan Mantri Awaas Yojana Gramin (PMAYG) to provide housing assistance to eligible rural households. As of July 31, 2025, 4.12 crore houses have been allotted out of a cumulative target of 4.95 crore, with over 2.81 crore houses completed. The Union Cabinet approved an additional 2 crore houses to be constructed from FY 2024-25 to 2028-29. Currently, there is no proposal for a one-time financial settlement for incomplete houses.
Key Points / Main Content:
PMAYG Implementation:
* PMAYG aims to achieve Housing for All in rural areas, effective from April 1, 2016.
* A total target of 2.95 crore houses was allotted to States/UTs by March 2024.
* An additional 2 crore houses are approved for construction during FY 2024-25 to 2028-29.
* Beneficiaries are identified based on SECC 2011 database and Awaas 2018 survey list.
* As of 31.07.2025, 4.12 crore houses have been allotted to States/UTs, with 2.81 crore houses completed.
Financial Assistance and Disbursement:
* Central Share of funds is released directly to States/UTs based on annual financial allocation, previous performance, pending completions, fund utilization, and current targets.
* States/UTs disburse funds as construction-linked installments directly to beneficiaries' bank or post office accounts via Aadhaar-Based Payment System/Direct Benefit Transfer (DBT).
Construction Material Provisions:
* States are advised to orient beneficiaries to procure BIS-certified ISI-marked construction material.
* States/UTs should ensure sustained availability of good quality construction materials.
* CSR funding and assistance from bilateral/multilateral agencies can be tapped to promote green construction designs, technologies, and materials.
* Gram Panchayats may facilitate beneficiaries in accessing materials at reasonable rates and identify trained masons.
* Self-Help Groups (SHGs) can produce quality building materials for PMAYG beneficiaries at reasonable rates.
* PMAYG converges with other government schemes for additional support, including toilet construction and employment opportunities.
* States/UTs assist beneficiaries with house designs suitable to local conditions and cultural preferences.
Monitoring and Review:
* PMAYG is closely monitored at all levels with emphasis on quality and timely completion.
* The Ministry is taking steps to increase the pace of house sanction and completion.
* These steps include timely allocation of targets, PMAYG analytic Dashboard, micro-monitoring using IT tools, regular reviews, focus on houses with 2nd/3rd installment release, separate reviews for states with high targets, timely fund release, and follow-up on land provision for landless beneficiaries.
One-Time Financial Settlement:
* There is currently no proposal under consideration for a one-time financial settlement for partially constructed houses.
Impact Analysis:
States/Union Territories:
* Impact: Responsible for disbursing funds, ensuring material availability, and assisting beneficiaries with construction.
* Action Required: Disburse funds via DBT, promote quality materials, utilize CSR and other funding, assist beneficiaries, and follow up on land provision.
Beneficiaries:
* Impact: Receive financial assistance for house construction in installments.
* Action Required: Procure BIS-certified materials, construct houses according to design typologies, and utilize converged scheme benefits.
Gram Panchayats:
* Impact: Facilitate access to construction materials and identify trained masons.
* Action Required: Assist beneficiaries in procuring materials at reasonable rates and help identify trained masons.
Self-Help Groups (SHGs):
* Impact: Potential to produce and supply quality building materials.
* Action Required: Produce quality building materials for PMAYG beneficiaries at reasonable rates.
Ministry of Rural Development:
* Impact: Oversees implementation, monitoring, and funding of PMAYG.
* Action Required: Continue monitoring, timely fund release, conduct reviews, and utilize IT tools for tracking progress.
Key Entities Referenced
Pradhan Mantri Awaas Yojana Grameen (PMAYG): A rural housing scheme implemented by the Ministry of Rural Development, Government of India, to provide assistance to eligible rural households with basic amenities.
Ministry of Rural Development: The government ministry responsible for implementing the Pradhan Mantri Awaas Yojana Grameen (PMAYG) and other rural development programs.
Socio-Economic Caste Census (SECC) 2011: A census used to identify beneficiaries under PMAYG based on housing deprivation parameters.
Awaas 2018: A survey list finalized based on the SECC 2011 database, used to identify beneficiaries under PMAYG.
Direct Benefit Transfer (DBT): A system used under PMAYG to provide assistance directly to beneficiaries' bank or post office accounts through Aadhaar Based Payment System in construction-linked installments.
Shri B Y Raghavendra: Member of Lok Sabha who raised a question about financial settlement under PMGSY.
DR. CHANDRA SEKHAR PEMMASANI: Minister of State in the Ministry of Rural Development who answered the question regarding financial settlement under PMGSY.
Lok Sabha: The lower house of the Parliament of India, where the question about PMAYG was raised.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 2686
ANSWERED ON 05/08/2025
FINANCIAL SETTLEMENT UNDER PMGSY
2686. Shri B Y Raghavendra:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the Government is aware that a number of houses
sanctioned under the Pradhan MantriAwaasYojana – Grameen
remain incomplete due to cessation of financial assistance
beyond the stipulated completion timeline;
(b) whether the Government is cognisant of the fact that
beneficiaries belonging to economically weaker sections in
rural areas often face delays in construction due to financial
constraints and limited access to resources;
(c) whether the Government proposes to consider a one-time
financial settlement or special dispensation to enable
completion of such partially constructed houses;
(d) if so, the details thereof; and
(e) whether the Government has undertaken any review or
assessment to identify the number of such incomplete houses
and the quantum of funds required for their completion?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(DR. CHANDRA SEKHAR PEMMASANI)
(a)& (b): In order to achieve the objective of “Housing for All” in
rural areas, the Ministry of Rural Development is implementing
Pradhan MantriAwaasYojana- Gramin (PMAY-G) with effect from 1st
April 2016 to provide assistance to eligible rural households with
basic amenities. A total target of 2.95 crore houses have already
been allotted to States/UTs by March 2024 which was the set
timeline approved by the Cabinet. To address the arising housing
needs in rural areas, the Union Cabinet in its meeting dated
09.08.2024 approved 2 crore additional houses under PMAY-G to be
Page 1 of 3constructed during FY 2024-25 to 2028-29. The beneficiaries under
PMAY-G are identified based on the housing deprivation parameters
under Socio-Economic Caste Census (SECC) 2011 database and
finalized Awaas+ 2018 survey list.
As on 31.07.2025, out of the cumulative target of 4.95 crore
houses, 4.12 crore houses have been allotted to the States/UTs out
of which 3.84 crore houses have been sanctioned and more than
2.81 crore houses have been completed.
Under PMAY-G, the Ministry releases Central Share of funds
directly to States/UTs considering them as a single unit based upon
their Annual Financial Allocation which is decided for each State/UT
on the basis of previous year’s performances - houses pending for
completion and utilization of available funds & targets allocated in
the current year.
Further disbursal of funds as installments of assistance to the
beneficiaries is done by the States/UTs. The assistance under the
scheme is provided to the beneficiaries directly into their bank
account/ post office account through Aadhaar Based Payment
System/Direct Benefit Transfer (DBT) in construction linked
installments by the States/UTs.
The following steps are being taken to provide construction
materials to the beneficiaries under PMAY-G:-
i. States have advised to orient beneficiaries to procure the BIS-
certified (ISI marked) construction material.
ii. States/ UTs have also been asked to take necessary steps to
ensure the sustained availability of good quality construction
materials.
iii. The State/UT may tap into CSR funding / assistance and
funding from bilateral/multilateral agencies to promote
environment friendly green construction designs, technologies
and materials.
iv. The Gram Panchayats may facilitate beneficiaries in
accessing materials required for construction at reasonable
rates and help in identification of trained masons
v. Further, Self-Help Groups (SHG) can undertake production of
quality building materials for supplying the same to the
beneficiaries of PMAY-G at reasonable rates.
Page 2 of 3vi. PMAY-G converges with other government schemes to provide
additional support for house construction, including
assistance for toilet construction and employment
opportunities, etc..
vii. The beneficiaries are being assisted in house construction by
States/UTs with a bouquet of house design typologies
inclusive of disaster resilient features that are suitable to their
local geo-climatic conditions, cultural preferences and
availability of construction material.
(c) & (d): At present, no such proposal is under consideration in
the Ministry.
(e): The PMAY-G is monitored very closely at all levels. There is a
special emphasis on quality and timely completion of
construction.The Ministry is taking various steps to increase the
pace of house sanction & completion and achievement of the
targets under the scheme. Some of which are as under:
i. Timely allocation of targets to the States/UTs
ii. Launch of PMAY-G analytic Dashboard for monitoring and
supervision of the scheme.
iii. Micro monitoring of house sanction and completion using
latest IT tools and technologies.
iv. Regular review by Hon’ble Minister, Secretary and Deputy
Director General
v. Focus on completion of those houses where 3rd or 2nd
installment of funds has been released
vi. Separate review of States with high targets
vii. Timely release of funds as per requirements of States/UTs
viii. Continuous follow-up with States / UTs on providing land to
landless beneficiaries of PMAY-G.
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