Uttar Pradesh Allows Affordable Housing Projects on Smaller Land Parcels Under PMAY-Urban 2.0

Lucknow: In a move aimed at expanding access to affordable housing in urban areas, the Government of Uttar Pradesh has relaxed land requirements for housing projects under the Pradhan Mantri Awas Yojana – Urban 2.0.

The revised policy will allow residential developments to be undertaken on relatively smaller parcels of land in cities, making it easier for developers to construct houses for economically weaker sections.

Under the new provisions, housing projects can now be developed on a minimum land area of three hectares, enabling builders to construct both flats and independent houses as part of the scheme.

The state government has fixed the price of dwelling units meant for the Economically Weaker Section (EWS) category at ₹9 lakh per unit. To make these homes more affordable, both the central and state governments will jointly provide a subsidy of ₹2.5 lakh for each eligible housing unit.

Additional Benefits for Special Focus Groups

The revised framework also introduces additional financial concessions for certain vulnerable groups under a Special Focus Group category.

Senior citizens purchasing homes under the scheme will receive an additional ₹30,000 discount, while single women applicants will be eligible for an extra ₹20,000 concession.

To encourage developers to participate more actively in the construction of affordable housing, the government has decided that builders who undertake projects consisting solely of EWS housing units will be exempted from paying External Development Charges (EDC).

Government Issues Official Order

The updated guidelines were formally notified on Friday through a government order issued by P. Gurup Prasad. The order also lays down detailed financial eligibility criteria for developers seeking to undertake projects under the scheme.

According to the guidelines:

• Developers planning projects on up to three hectares of land must demonstrate a net worth of ₹2 crore over the last three financial years.
• Projects covering three to five hectares will require a net worth of ₹5 crore.
• Developers undertaking projects on five to ten acres of land must have a net worth of ₹1 crore.
• For projects covering more than ten hectares, the developer’s net worth must be ₹1 crore per hectare or part thereof.

Mandatory Allocation for Affordable Housing

The policy also mandates that at least 10 per cent of the total residential units in any housing project must be reserved for EWS and LIG (Low Income Group) categories, ensuring that affordable housing remains an integral part of urban development.

Developers will also be required to complete construction within a fixed timeline. Projects comprising up to four floors must be completed within 24 months, while larger developments with more floors must be completed within 36 months.

Builders will additionally be responsible for complying with all regulatory conditions laid down by the Uttar Pradesh Real Estate Regulatory Authority, including mandatory registration and adherence to transparency norms.

Eligibility Criteria for Beneficiaries

To qualify for an EWS housing unit under the scheme, the beneficiary family must not own a permanent house anywhere in India. The definition of a beneficiary family includes the husband, wife, unmarried sons and unmarried daughters.

In keeping with the government’s focus on women’s empowerment, houses under the scheme will be allotted either in the name of the female head of the household or jointly in the names of husband and wife.

Priority for Vulnerable Sections

The allotment process will also prioritise applicants from socially and economically vulnerable sections of society.

Preference will be given to widows, single women, persons with disabilities, senior citizens, transgender individuals, members of the Scheduled Castes and Scheduled Tribes, minorities, and other disadvantaged communities.

Officials believe that the revised norms will help accelerate affordable housing development in urban areas while ensuring that economically weaker families gain access to secure and dignified housing.

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