MEASURES TO PROMOTE AFFORDABLE HOUSING

1. At a Glance

• Affordable housing = housing for EWS/LIG/MIG households in urban India, anchored in the constitutional goal of adequate shelter and SDG-11 (sustainable cities) [S1][S2].
• Driven by MoHUA's PMAY-U 2.0 (flagship scheme) and the NITI Aayog "Comprehensive Framework to Promote Affordable Housing" released December 2025 [S1][S3].
• UPSC relevance: GS-II (welfare schemes, governance) and GS-III (urbanisation, infra, inclusive growth).

2. Why in the News

• 9 Feb 2026: PIB release by MoHUA confirming that NITI Aayog's approach paper on affordable housing (released Dec 2025) has been circulated to stakeholders for action [S1].
• NITI Aayog released "A Comprehensive Framework to Promote and Enable Affordable Housing" in December 2025 with structural reforms on land, finance, rental housing and regulation [S3].
• PMAY-U 2.0 (launched Sept 2024) is currently being rolled out; 6th Central Sanctioning and Monitoring Committee meeting held in 2026 [S2].

3. Background & Evolution

• 2015 (25 June): PMAY-Urban launched by MoHUA — "Housing for All" target initially 2022 [S1].
• 2015–2024: PMAY-U delivered crore-scale sanctions across four verticals (BLC, AHP, ARH/earlier ISSR, CLSS) [S2].
• Aug 2024: Union Cabinet approved PMAY-U 2.0 [S2].
• Dec 2025: NITI Aayog releases comprehensive framework approach paper [S3].
• Feb 2026: MoHUA circulates framework to stakeholders [S1].

4. Core Static Facts

• Nodal ministry: Ministry of Housing and Urban Affairs (MoHUA) [S1].
• Scheme: Pradhan Mantri Awas Yojana – Urban 2.0 ("Housing for All") [S1][S2].
• Target: 1 crore houses for urban poor and middle-class families over 5 years [S2].
• Investment: ₹10 lakh crore; Government subsidy: ₹2.30 lakh crore [S2].
• Four verticals: BLC (Beneficiary-Led Construction), AHP (Affordable Housing in Partnership), ARH (Affordable Rental Housing), ISS (Interest Subsidy Scheme) [S2].
• Income eligibility: EWS ≤ ₹3 lakh p.a.; LIG ₹3–6 lakh; MIG ₹6–9 lakh [S2].
• ISS: max interest subsidy of ₹1.80 lakh for beneficiaries with income up to ₹9 lakh [S2].
• NITI Aayog report (Dec 2025): "A Comprehensive Framework to Promote and Enable Affordable Housing" — focus on land enablement (zoning, FAR, land banks), finance (state-level shelter funds), rental reforms, regulatory streamlining [S3].

5. Multi-Dimensional Analysis

Economic - Real estate is a key GDP and employment multiplier; ₹10 lakh crore PMAY-U 2.0 investment catalyses construction, cement, steel sectors [S2]. - Interest Subsidy Scheme channelled through NHB and Primary Lending Institutions (PLIs) to bring formal credit to EWS/LIG/MIG [S2].

Social - ARH targets urban migrants, homeless, industrial workers, working women, construction workers — addressing intra-urban inequity [S2]. - Pucca house with basic civic amenities expands dignity and security of tenure for the urban poor [S1].

Administrative / Federal - Implemented through States/UTs/PLIs; Central Sanctioning and Monitoring Committee (CSMC) clears state proposals [S2]. - NITI framework flags Centre–State coordination as the binding constraint [S3].

Legal / Regulatory - NITI Aayog recommends revising definition of "affordable housing", easing zoning, Floor Area Ratio (FAR) rules, transparent land inventories [S3].

Governance / Reform - Bottlenecks identified: land availability, housing stock sufficiency, access to finance, regulatory hurdles [S3]. - Proposed instruments: land aggregation models, land banks, state-level shelter funds [S3].

6. Recent Developments (last 12-18 months)

• Aug 2024: Cabinet approval of PMAY-U 2.0 [S2].
• Sept 2024 onwards: National Workshop on PMAY-U 2.0; MoUs signed between NHB and PLIs for ISS vertical implementation [S2].
• Dec 2025: NITI Aayog releases "A Comprehensive Framework to Promote and Enable Affordable Housing" with Round Table of Central Ministries, State Governments, and real estate practitioners [S3].
• 2026: 4th and 6th meetings of CSMC under PMAY-U 2.0 [S2].
• 9 Feb 2026: MoHUA PIB release confirming dissemination of NITI Aayog framework to stakeholders [S1].

7. Prelims Hooks

• PMAY-U launched on 25 June 2015 by MoHUA [S1].
• PMAY-U 2.0 target: 1 crore houses in 5 years with ₹10 lakh crore investment [S2].
• Central subsidy under PMAY-U 2.0: ₹2.30 lakh crore [S2].
• PMAY-U 2.0 has 4 verticals: BLC, AHP, ARH, ISS (note: ARH replaces earlier ISSR/CLSS naming) [S2].
• ISS maximum subsidy: ₹1.80 lakh per beneficiary [S2].
• Income cut-off: EWS ≤ ₹3 lakh, LIG ₹3–6 lakh, MIG ₹6–9 lakh [S2].
• NITI Aayog report title: "A Comprehensive Framework to Promote and Enable Affordable Housing" — released December 2025 [S3].
• Nodal body for ISS implementation through PLIs: National Housing Bank (NHB) [S2].
• Implementing ministry: MoHUA (NOT Ministry of Rural Development) — PMAY-U is urban; PMAY-Gramin is under MoRD [S1].
• CSMC = Central Sanctioning and Monitoring Committee — apex approval body under PMAY-U 2.0 [S2].

8. Mains Relevance

• GS-II: Government policies/interventions for vulnerable sections; welfare schemes — "Housing for All" / PMAY.
• GS-III: Inclusive growth, urbanisation, infrastructure, employment.
• Sample stems: 1. "Critically examine the structural bottlenecks identified by NITI Aayog's 2025 framework on affordable housing. Suggest reforms in land and finance." 2. "Discuss how PMAY-U 2.0 differs from its predecessor and assess whether its design adequately addresses the rental housing needs of urban migrants." 3. "Affordable housing is as much a land-governance problem as a finance problem. Examine in light of recent policy interventions."

9. Related Topics to Study Next

• PMAY-Gramin (MoRD) — rural counterpart, distinguish from PMAY-U.
• AMRUT 2.0 & Smart Cities Mission — sister urban missions under MoHUA.
• Real Estate (Regulation and Development) Act, 2016 (RERA) — regulatory backbone.
• National Urban Rental Housing Policy / ARHC — rental housing for migrants (post-COVID origin).
• DAY-NULM — urban livelihoods, complements housing.
• Model Tenancy Act, 2021 — unlocks rental supply.
• Floor Area Ratio (FAR), TDR, Land Pooling — land enablement tools cited by NITI [S3].
• National Housing Bank (NHB) — regulator and ISS conduit.

10. Common Errors / Trap Areas

• Confusing PMAY-U (MoHUA) with PMAY-G (MoRD) — different ministries, targets, subsidy structures [S1].
• Treating CLSS as still live — under PMAY-U 2.0, the credit-linked component is the renamed Interest Subsidy Scheme (ISS) [S2].
• Wrong income slabs: MIG cap under PMAY-U 2.0 is ₹9 lakh, not ₹18 lakh (which was the old MIG-II under PMAY-U) [S2].
• Misattributing the December 2025 framework to MoHUA — it was authored by NITI Aayog and circulated by MoHUA [S1][S3].
• Forgetting ARH as an independent vertical (previously merged ideas under ARHC) [S2].

11. Sources

• [S1] MEASURES TO PROMOTE AFFORDABLE HOUSING, PIB, MoHUA, 09 Feb 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225505 — (tier: 1)
• [S2] Cabinet approves Pradhan Mantri Awas Yojana-Urban 2.0 Scheme & related PIB releases on PMAY-U 2.0 verticals, ISS, CSMC — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2043924 — (tier: 1)
• [S3] NITI Aayog, "A Comprehensive Framework to Promote Affordable Housing," Dec 2025 — https://niti.gov.in/sites/default/files/2026-01/A_Comprehensive_Framework_to_Promote_Affordable_Housing.pdf — (tier: 1)