HYDERABAD: The Union government has approved financial assistance of Rs 1,705.21 crore to Telangana for the construction of 1,13,681 houses under the Pradhan Mantri Awas Yojana - Urban (PMAY-U). These houses are proposed to be built by the state government across 120 towns and municipalities under the Beneficiary Led Construction (BLC) component, with a total estimated cost of Rs 5,684.05 crore.
The state’s share of the construction cost amounts to Rs 3,978.83 crore. The Central Sanctioning and Monitoring Committee (CSMC) of the Ministry of Housing and Urban Affairs, which recently approved the assistance, recommended the release of Rs 682.08 crore as the first instalment. Subsequent installments will be released based on the state’s compliance with the scheme’s guidelines.
Each house is estimated to cost Rs 5 lakh, with the Centre contributing Rs 1.5 lakh and the state government covering the remaining Rs 3.5 lakh. Officials have indicated that this financial assistance from the Centre provides significant relief to the state government, which plans to roll out the Indiramma Housing scheme. Sources suggest that the state is considering utilising these funds for the scheme.
However, while approving the financial assistance, the Union government expressed concern over the low occupancy of houses already constructed in Telangana. It stated, “Occupancy of completed houses remains a major issue. The state should allot 58,000 vacant completed houses to the beneficiaries at the earliest.”
Additionally, it was noted that out of 1,46,035 Affordable Housing in Partnership (AHP) houses have been completed, only 82,641 (56.57%) houses have been allotted to beneficiaries.
The Centre also highlighted that the state has an unspent balance of Rs 167.37 crore and that utilisation certificates for houses worth Rs 63.06 crore are pending submission. It has advised the state government to utilise the unspent balance and submit the pending utilisation certificates promptly.
