THEBUSINESSBYTES BUREAU

BHUBANESWAR, AUGUST 1, 2026

The Odisha Cabinet on Saturday approved the Pradhan Mantri Awas Yojana (Urban) Beneficiary Assistance for Nurturing Development of Housing Units (PMAY-(U) BANDHU), a state-funded scheme to complement the Centre's PMAY-U 2.0 and accelerate the provision of pucca houses to all eligible urban families by 2029.

The scheme, with a total outlay of Rs 1,615 crore, will provide additional financial and institutional support for implementation of PMAY-U 2.0 in the state, officials said.

The initiative is aligned with the state's Vision 2029 target of increasing pucca housing coverage in urban areas from 59 per cent in 2024 to 90 per cent by 2029.

Under the scheme, the state government plans to extend housing support to an additional three lakh to 3.5 lakh urban households during the 2025-30 period.

PMAY-U 2.0 is currently being implemented in all 115 Urban Local Bodies (ULBs) and will also be expanded to the state's newly constituted 28 ULBs, according to the government.

Officials said the PMAY-(U) BANDHU scheme has been designed to address key challenges in implementing affordable housing projects, particularly in smaller urban centres, by improving project viability, extending financial incentives to beneficiaries and facilitating access to affordable housing loans for economically weaker sections.

The scheme has four components.

Under the first component, Rs 675 crore has been earmarked as viability gap funding for Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Transit House (TH) projects.

Another Rs 685 crore has been allocated under the second component to provide additional financial assistance to beneficiaries in the form of labour compensation and incentives for timely completion of houses.

The third component has a provision of Rs 100 crore to facilitate affordable housing loans and provide interest subvention support to highly deprived beneficiaries.

The remaining Rs 125 crore will be utilised to assist beneficiaries displaced due to cluster housing development, slum redevelopment and other urban planning interventions.

The government expects the scheme to facilitate construction of around 30,000 Affordable Housing in Partnership units and 10,000 Affordable Rental Housing and Transit House units over the next five years.

Officials said housing projects developed under the scheme would incorporate sustainable features such as solar energy systems, rainwater harvesting and adequate open spaces. They will also include social infrastructure such as Anganwadi centres, children's play areas, primary health centres and public distribution system outlets.

Priority in house allotment will be given to vulnerable groups, deprived families and persons with disabilities, the government said.

Beneficiaries will also receive support to offset wage losses or labour contributions during house construction, while incentives will be provided for early completion of houses.

Officials said the PMAY-(U) BANDHU scheme would serve as a dedicated state-level support mechanism for PMAY-U 2.0 and help Odisha achieve universal urban housing coverage within the targeted timeframe.