Bhubaneswar: The Odisha Cabinet on Saturday approved the Pradhan Mantri Awas Yojana (Urban) Beneficiary Assistance for Nurturing Development of Housing Units (PMAY-(U) BANDHU), a new state-funded initiative designed to complement the Centre’s PMAY-U 2.0 and accelerate the goal of providing pucca houses to all eligible urban families by 2029.
With a total outlay of Rs 1,615 crore, the scheme will provide additional financial and institutional support to strengthen the implementation of PMAY-U 2.0 across Odisha. The initiative aligns with the state’s Vision 2029 target of increasing pucca housing coverage in urban areas from 59 per cent in 2024 to 90 per cent by 2029.
The state government plans to extend housing support to an additional three to 3.5 lakh urban households during the 2025-30 period. PMAY-U 2.0 is currently being implemented in all 115 Urban Local Bodies (ULBs) and will also be expanded to the state’s newly constituted 28 ULBs.
According to the government, the PMAY-(U) BANDHU scheme has been designed to address critical challenges in implementing affordable housing projects, particularly in smaller urban centres, by improving project viability, providing financial incentives to beneficiaries and facilitating access to affordable housing loans for economically weaker sections.
The scheme comprises four components. The first component allocates Rs 675 crore to support Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Transit House (TH) projects through viability gap funding. The second component earmarks Rs 685 crore to provide additional financial assistance to beneficiaries in the form of labour compensation and incentives for timely completion of houses.
Under the third component, Rs 100 crore has been allocated to facilitate affordable housing loans and provide interest subvention support to highly deprived beneficiaries. The fourth component has a provision of Rs 125 crore to assist beneficiaries displaced due to cluster housing development, slum redevelopment or other urban planning interventions.
The government expects the scheme to support the construction of around 30,000 Affordable Housing in Partnership units and 10,000 Affordable Rental Housing and Transit House units over the next five years.
Housing projects developed under the scheme will incorporate sustainable features such as solar energy systems, rainwater harvesting and adequate open spaces. The projects will also include essential social infrastructure, including Anganwadi centres, children’s play areas, primary health centres and public distribution system outlets.
The government said priority in house allotment will be given to vulnerable groups, deprived families and persons with disabilities. Beneficiaries will also receive support to offset wage losses or labour contributions during house construction, while incentives will be offered for early completion of houses.
Officials said the PMAY-(U) BANDHU scheme will serve as a dedicated state-level support mechanism to complement PMAY-U 2.0 and help Odisha achieve universal urban housing coverage within the targeted timeframe.
