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Odisha speeds up PMAY-U 2.0 housing push after slow verification and approvals

#Builders & Projects#Residential#India#Odisha
Last Updated : 3rd Jul, 2025
Synopsis

Odisha's housing department launched a vigorous campaign this past week to accelerate the verification of beneficiary-led PMAY-U 2.0 applications, which have been processing at a disappointing pace. With over 82,000 applications submitted since January, fewer than 17% have been verified and just 14.5% forwarded as proposals. The state has now instructed urban local bodies to boost public awareness in areas lagging behind and expedite both verification and sanctioning. The department is also ensuring that work orders follow quickly for approved units.

Odisha's housing and urban development department has raised the alarm over the sluggish pace of implementation under the Pradhan Mantri Awas Yojana (Urban) 2.0 scheme and is now pushing for immediate improvements in application verification and project sanctioning. The move comes as the state observed that while 82,382 applications had been submitted since the beginning of this year, only about 16.9% around 13,925 had been verified, and just 11,959 (14.5%) had been converted into proposals.


A majority of these fall under the Beneficiary-Led Construction (BLC) component, with 48,598 applications received under this category alone. Officials flagged this gap during a high-level review, noting the overall pace was far below expectations, especially considering Odisha's prior performance under PMAY-U Phase 1, where only 12% of eligible urban households received housing benefits.

In light of this, the department has directed ULBs to conduct focused public outreach in areas where verification and sanction rates are lagging behind the state average. Local bodies have also been tasked with ensuring timely submission of proposals and issuing work orders without delay once approvals are granted.

In a parallel move, the state government recently gave its approval to 43 new BLC housing projects, covering 3,949 units. These have been submitted for central clearance, with a funding proposal of INR 256 crore sent to the Centre. As per the scheme's cost-sharing structure, each unit will receive INR 1.5 lakh from the Centre, INR 1 lakh from the state, and INR 4 lakh from the beneficiary.

To streamline implementation, Odisha has also released a detailed Standard Operating Procedure (SOP) that outlines key steps for beneficiary selection, field verification, and allocation. The SOP also mandates preferential allotment for households with members suffering from locomotor disabilities. Officials said this move aims to ensure better clarity and accountability at every stage, especially for field-level staff and verification teams.

During the first Central Sanctioning and Monitoring Committee (CSMC) meeting under PMAY-U 2.0, held a few months ago, only 5,328 units under the BLC component were sanctioned for Odisha. Since then, the state has been working to scale up project approvals and improve the verification pipeline to ensure higher housing coverage in urban areas.

Eligibility for PMAY-U 2.0 remains focused on economically weaker sections (annual income less than INR 3 lakh) and lower-income groups (annual income between INR 3 and 6 lakh), with the added condition that the beneficiary or any family member must not own a pucca house in any part of the country.

With rising scrutiny from the central government and mounting public demand for affordable housing, Odisha's renewed focus on project execution is being seen as an attempt to bridge gaps in urban housing access and demonstrate stronger performance under PMAY-U 2.0.

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