Andhra Pradesh Sanctions 17,912 Houses Under PMAY-Urban 2.0 at Rs 447.8 Crore

The Andhra Pradesh government has sanctioned nearly 18,000 houses at a total project cost of about Rs 448 crore under the Pradhan Mantri Awas Yojana-Urban (PMAY-Urban) 2.0 Beneficiary-led Construction scheme.

According to a government order issued by Hephsiba Rani Korlapati, Special Secretary of the Housing Department, the administrative sanction covers 17,912 houses for the financial years 2025-26 and 2026-27. The unit cost for each house has been fixed at Rs 2.5 lakh.

The funding structure for each unit is split between the central and state governments. The Government of India will provide 60 per cent, amounting to Rs 1.5 lakh per unit, while the remaining 40 per cent, or Rs 1 lakh, will be contributed by the state government.

The government order noted that the decision followed a careful examination of facts and circumstances reported by the Managing Director of the Andhra Pradesh State Housing Corporation Limited.

Earlier, the Central Sanctioning-cum-Monitoring Committee of the Ministry of Housing and Urban Affairs reviewed the allocations. This included 893 houses under the scheme for 2025-26 at a project cost of Rs 22 crore, another 4,649 houses for 2025-26 at a project cost of Rs 116 crore, and 12,370 houses for 2026-27 at a project cost of Rs 309 crore.

The housing department has clarified that beneficiaries will be responsible for bearing any additional costs required to complete the construction of the houses in all respects, if expenses exceed the sanctioned unit cost of Rs 2.5 lakh.

"Government-backed housing initiatives like PMAY-Urban 2.0 play a crucial role in driving infrastructure development and supporting the construction sector. By sharing the financial burden between central and state authorities, projects of this scale create steady demand for building materials and local labor. However, the condition that beneficiaries bear costs exceeding the Rs 2.5 lakh unit limit highlights the importance of effective cost management at the ground level to protect individual homeowners from unexpected financial strain." — Dr. Shishir Gupta, Founder & CEO, StartupLanes