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Odisha plans 30,000 affordable homes under PMAY-U 2.0

#Builders & Projects#Residential#India#Odisha
Synopsis

Odisha is planning to develop around 30,000 affordable housing units under Pradhan Mantri Awas Yojana-Urban 2.0, as the state expands its focus on housing for economically weaker sections. The initiative will cover projects across multiple urban local bodies, with land being identified for affordable housing developments. The state is also working on rental and transit housing alongside ownership-led projects. The Centre has sanctioned more than 2.09 lakh PMAY-U 2.0 houses nationally in its latest approval round, including proposals from Odisha, supporting the state's wider affordable housing programme.

Odisha is preparing to expand its affordable housing pipeline with plans to develop around 30,000 housing units under the Pradhan Mantri Awas Yojana-Urban 2.0, as the state seeks to improve access to formal housing for economically weaker urban households. 
The proposed development will be spread across urban local bodies, with authorities identifying suitable land and preparing projects under the Affordable Housing in Partnership (AHP) component of PMAY-U 2.0. The programme is expected to involve both public agencies and private-sector participation in creating housing projects targeted at eligible beneficiaries. 
The housing programme comes alongside Odisha's efforts to strengthen its state-level support for PMAY-U 2.0. The state has introduced the PMAY-U Beneficiary Assistance for Nurturing Development of Housing Units (BANDHU) initiative, which is designed to address financial and implementation gaps that can make affordable housing projects difficult to execute, particularly in smaller cities. 
Under the state-backed programme, approximately 30,000 AHP homes are envisaged over the next five years. A further 10,000 units are planned under affordable rental and transit housing categories, creating a broader housing supply beyond conventional ownership-based projects. 
The BANDHU programme has been approved with an outlay of INR 1,615 crore through 2029. Its interventions include viability-gap support for affordable housing developments, additional assistance for beneficiaries and measures intended to improve access to housing finance. 
A portion of the programme is also designed to address the contribution that beneficiaries may have to make towards construction. Additional financial assistance and incentives are intended to make it easier for eligible households to participate in housing projects without the upfront burden becoming a major barrier. 
For rental and transit housing, state support could help make projects more viable in locations where private developers may otherwise find affordable units less commercially attractive. This is particularly relevant to smaller urban centres, where land and construction economics can make low-cost housing difficult to deliver at scale. 
The state's approach is also linked to its wider urbanisation strategy. Odisha expects its urban population to continue expanding, increasing demand for housing and associated infrastructure. The state's economic survey has identified a continuing housing gap despite substantial progress made through government housing programmes. 
At the national level, PMAY-U 2.0 is targeting additional housing support for one crore eligible urban families. In the latest Central Sanctioning and Monitoring Committee meeting, more than 2.09 lakh houses were approved across 16 states and Union territories, including Odisha. The latest approvals took the total number of houses sanctioned under PMAY-U 2.0 beyond 18.38 lakh. 
The central scheme provides support through multiple routes, including Beneficiary Led Construction, AHP, interest subsidy and affordable rental housing. Under the BLC component, eligible beneficiaries can receive financial assistance of up to INR 2.5 lakh to construct homes on their own land. 
For Odisha, combining central assistance with the state's own financial and institutional support could allow more projects to move from planning to implementation. The focus on ownership, rental and transit housing also gives the state flexibility to address different housing requirements across its urban centres. 
If the planned projects are executed as proposed, the programme could add a substantial stock of affordable homes while creating opportunities for developers, contractors and allied construction businesses involved in urban housing delivery. 
Source- PIB

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