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The Maharashtra government has tightened norms under the Pradhan Mantri Awas Yojana (Urban) 2.0, requiring certain affordable housing projects to secure confirmed beneficiary linkage for at least 25 per cent of units before physical construction can begin or scheme benefits are availed. The directive, issued on 23 January, applies to Affordable Housing in Partnership (AHP) and AHP-public private partnership (AHP-PPP) projects where the sale price of Economically Weaker Section (EWS) units exceeds the applicable annual statement of rates by more than 20 per cent. Under the revised framework, developers must ensure that one in four units has committed beneficiaries before moving ahead with construction or accessing incentives such as additional floor space index. The updated guidelines also aim to standardise unit size norms and require implementing agencies to furnish key clearances at the proposal stage to improve compliance and transparency in affordable housing delivery.
The Maharashtra government has introduced tighter regulatory guidelines for the implementation of the Pradhan Mantri Awas Yojana (Urban) 2.0 scheme, mandating beneficiary linkage requirements for selected affordable housing projects to enhance accountability and ensure market responsiveness. The revised norms, notified on 23 January, were formulated after a detailed review of project reports submitted under PMAY (Urban) 2.0 revealed inconsistencies in pricing, documentation and built-up area calculations across some proposals. Advertisement
Under the updated framework, Affordable Housing in Partnership (AHP) and AHP-public private partnership (AHP-PPP) projects where the sale price of Economically Weaker Section (EWS) units exceeds the prevailing annual statement of rates (ASR) by more than 20 per cent will be required to secure confirmed beneficiary registrations for at least 25 per cent of units before physical construction commences or before developers can avail key scheme benefits.
For AHP projects, this linkage threshold must be met prior to the start of construction. In the case of AHP-PPP proposals, developers must demonstrate that 25 per cent of units have registered beneficiaries before they can access incentives such as additional floor space index or other scheme advantages. Projects will need to be resubmitted to the state-level project management unit after documenting the requisite beneficiary attachment.
The revised norms also standardise unit size for EWS housing, capping the built-up area at no more than 1.4 times the carpet area when calculating sale prices and completing project annexures. This move is aimed at bringing greater uniformity to pricing and area norms, which state officials said varied widely in earlier submissions, complicating the approval process.
In addition to beneficiary linkage and unit size standardisation, the housing department has made it mandatory for all implementing agencies to submit key no-objection certificates for water supply, sewerage and electricity at the proposal stage itself. This requirement seeks to avoid delays or later stage clearances that had previously affected project timelines.
The circular further clarifies that the state government will not assume liability for unsold or vacant units following project completion, placing commercial risk with implementing agencies and developers. Authorities have directed all project proponents to ensure strict compliance with the revised guidelines when submitting proposals under the PMAY (Urban) 2.0 scheme.
The move reflects Maharashtra's effort to align affordable housing delivery with actual demand and reduce the risk of incomplete or stalled developments in the EWS segment, while attempting to bolster transparency in project execution and funding utilisation.
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