PM Awas Yojana Urban 2.0 BLC Scheme: ₹2.5 Lakh House Construction Support 2026

Pradhan Mantri Awas Yojana Urban 2.0 (PMAY-U 2.0) is accepting applications under the Beneficiary Led Construction (BLC) vertical. Under this component, eligible EWS families can get central assistance to build a new pucca house on their own land in a city. The scheme was launched on 1 September 2024 and aims to help 1 crore urban and middle-class families over a period of five years.

The older PMAY-U scheme has now been replaced by PMAY-U 2.0, and the BLC rules have changed as well. Earlier, families could use the money to build a new house or improve an existing one. Now the support is only for building a new all-weather house. Enhancement, extension and renovation of an existing house are no longer allowed under the scheme.

Beneficiary Led Construction (BLC) - PMAY Urban 2.0

BLC is one of the four verticals of PMAY-U 2.0. It is a Centrally Sponsored Scheme (CSS) under which an individual eligible family belonging to the EWS category builds a house on its own available land. The money is sent directly to the beneficiary's bank account through Direct Benefit Transfer (DBT).

The new house must have a carpet area of minimum 30 sqm and maximum 45 sqm, built as per the National Building Code (NBC) safety and design standards. It should have at least two rooms, a kitchen and a toilet or bathroom. The house should be completed within 12 to 18 months from the date of sanction.

How to Apply for BLC Component of PMAY-U 2.0

Beneficiaries who want this support can approach the Urban Local Body (ULB) or the implementing agency in their city. They can also register their demand online through the Unified Web Portal. The applicant has to submit the required documents, including proof of ownership of the land.

STEP 1 - Go to the official PMAY-HFA portal at pmaymis.gov.in and open the PMAY-U 2.0 section.

STEP 2 - Fill in the beneficiary survey form with family details, income, Aadhaar number and bank account details.

STEP 3 - Upload the ownership proof of the land and the building plan of the proposed house.

STEP 4 - Submit the application. The ULB or implementing agency will check the details and verify the eligibility on ground.

STEP 5 - Once approved by the State Level Sanctioning and Monitoring Committee (SLSMC) and the Central Sanctioning and Monitoring Committee (CSMC), the central assistance is released in instalments to the beneficiary's bank account.

Eligibility Criteria for BLC under PMAY-U 2.0

Only families belonging to the EWS category are eligible under this vertical. The family should not own a pucca house anywhere in India, either in the name of the applicant or any family member. The annual household income should be up to ₹3 lakh. States and UTs can change the income limit as per local conditions with the approval of the Ministry.

Preference is given to widows, single women, persons with disabilities, senior citizens, transgenders, Scheduled Castes and Scheduled Tribes, and other weaker sections. Special focus is given to Safai Karmis, street vendors, Anganwadi workers, construction workers and slum residents.

Central Assistance Amount under BLC

The central assistance depends on the state or UT where the beneficiary lives. For most states, the central government gives ₹1.5 lakh per house and the state government gives a minimum share of ₹1 lakh. This makes the total support about ₹2.5 lakh per house.

• For special category states like Assam, Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Puducherry and Delhi, the central share is ₹2.25 lakh per house and the state share is a minimum of ₹0.25 lakh.
• For all other UTs, the central assistance is ₹2.5 lakh per house.
• The state or UT share is mandatory. The remaining cost of the house is borne by the beneficiary.

Release of Funds under BLC Component

Central assistance under BLC is released in three instalments in the ratio of 40:40:20. The payment is linked to the physical progress of the house, which is tracked through geo-tagging. The first instalment is released after the project is sanctioned by the CSMC. The second instalment is released when the house reaches the lintel stage, and the final instalment is released after the house is completed.

States and UTs can release the first instalment from their own share without waiting for the central money, so that work on the ground can start early. The money is sent to the beneficiary's bank account through DBT within 7 days of approval of each geo-tagging stage.

Geo Tagging of Houses

The progress of each house is tracked through geo-tagging at five construction stages: layout, foundation or plinth, lintel, roof and completion. The beneficiary captures the geo-tagging status, and the ULB or implementing agency approves it. If the ULB does not approve within 15 days, the geo-tagging is auto approved in the system.

Other Components of PMAY-U 2.0

Apart from BLC, PMAY-U 2.0 has three more verticals. Affordable Housing in Partnership (AHP) helps EWS families buy a house in apartment projects. Affordable Rental Housing (ARH) provides rental housing for urban migrants and workers. Interest Subsidy Scheme (ISS) gives an interest subsidy of up to ₹1.8 lakh on home loans for EWS, LIG and MIG families.

There are more options under the PM Awas Yojana for eligible families. The central government aims to provide homes to 1 crore urban poor and middle-class families under PMAY-U 2.0.

Pradhan Mantri Gramin Awas Yojana has also been launched by the central government to provide houses to the rural poor. Under the Gramin Awas Yojana, the government will build pucca houses for rural poor families.

For more details, visit the guidelines section at the official website through the link - PMAY-U 2.0 Scheme Guidelines or Beneficiary Led Construction (BLC). To apply online, visit the official portal at PMAY-HFA Urban BLC.