
The Kerala Cabinet on Thursday decided to sign a memorandum of understanding (MoU) for the second phase of the Pradhan Mantri Awas Yojana-Urban (PMAY-U 2.0), agreeing to the Centre’s stipulation that beneficiaries…
The Kerala Cabinet on Thursday decided to sign a memorandum of understanding (MoU) for the second phase of the Pradhan Mantri Awas Yojana-Urban (PMAY-U 2.0), agreeing to the Centre’s stipulation that beneficiaries pay 25% of the scheme amount. The state will also allow display of the government emblem on houses built under the scheme, despite strong opposition from the Left Democratic Front (LDF).
Currently, no beneficiary of any housing scheme in Kerala pays a share. Under PMAY-U 2.0, the Centre provides ₹1.5 lakh, the state ₹1 lakh, and the local body ₹50,000. The remaining amount must be found by the municipality and the beneficiary. The state moved to avoid losing ₹450 crore of central share; around 30,000 beneficiaries are expected to benefit.
The LDF’s protest over the logo and beneficiary share plays on fears of central encroachment and loss of self-respect, but Kerala’s decision is a pragmatic trade-off for ₹450 crore. The real test is whether the state and local bodies can quickly raise the additional funds and whether the poorest applicants can afford their share. If the scheme stalls due to lack of uptake, the political blame game will intensify.
Source: thehindu.com
This story was synthesised by AI from the source linked above.