Unit cost for new houses raised to `2.5 lakh

Update: 2025-09-17 07:53 IST

Vijayawada: The state government enhanced the financial support for house construction under the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0). On the eve of Dasara festivities, the state announced that the unit cost for Beneficiary-Led Individual House Construction (BLC) will be increased from the existing Rs 1.5 lakh to Rs 2.5 lakh in Urban Local Bodies (ULBs) and Urban Development Authorities (UDAs).

In addition, beneficiaries will receive Rs 39,000 under MGNREGS convergence, which includes Rs 27,000 for 90 person-days of wage work and Rs 12,000 for construction of Individual Household Latrines (IHHL) under Swachh Bharat Mission (Gramin).

According to special chief secretary (Housing) Ajay Jain, who issued GO No 65 on Tuesday, the Union ministry of housing and urban affairs sanctioned Rs 1,010.25 crore towards this initiative. The revised proposals cover the construction of 40,410 houses, including 31,719 units in 126 ULBs for 2024–25 and 8,691 units in 82 ULBs and 8 UDAs for 2025–26.

Under the funding structure, the Centre will provide Rs 1.5 lakh, the state government will contribute Rs 1 lakh, and beneficiaries must bear any additional costs beyond the sanctioned unit amount.

The Andhra Pradesh State Housing Corporation Limited (APSHCL) had earlier submitted proposals for 40,410 houses at a unit cost of Rs.1.50 lakh. After review, the Central Sanctioning and Monitoring Committee (CSMC) approved the revised cost of Rs.2.50 lakh per unit. The GO also directs district collectors to grant administrative sanctions based on DPRs and to provide suggestive house designs as per NBC norms. Flexibility has been given to beneficiaries to adapt designs according to site conditions.

Further, the construction of twin houses with joint walls for close relatives (kith and kin) will be permitted with the approval of the State Level Sanctioning and Monitoring Committee (SLSMC).

This decision by the TDP-led NDA government is expected to provide a major relief to urban poor families aspiring for pucca houses and marks a key step in strengthening housing for all in Andhra Pradesh.

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