In a landmark decision taken at the 45th meeting of the Odisha Cabinet chaired by Chief Minister Mohan Charan Majhi at Lok Seva Bhawan, the state today approved “PMAY-(U) BANDHU” – a comprehensive complementary scheme designed to turbo-charge the implementation of Pradhan Mantri Awas Yojana-Urban 2.0 and deliver universal coverage of pucca housing to every eligible urban family by 2029.
The scheme, formally titled Pradhan Mantri Awas Yojana (Urban) Beneficiary Assistance for Nurturing Development of Housing Units, comes with a total outlay of ₹1,615 crore to be spent over five years (2025–2030). It directly addresses three critical bottlenecks that have slowed affordable housing delivery, especially in smaller cities: financial viability of projects, beneficiaries’ ability to contribute their share, and access to reasonably priced housing loans for Economically Weaker Section (EWS) families.
Chief Secretary Anu Garg, briefing the media after the Cabinet meeting, said the decision is fully aligned with the Odisha Vision Document (Viksit Odisha for Viksit Bharat), which aims to raise pucca-house coverage from the present 59 % (2024) to 90 % by 2029. Under PMAY-U 2.0 the state intends to support an additional 3.0–3.5 lakh urban households. BANDHU will act as the enabler that makes this ambitious target achievable.
Four focused components
- Component I (₹675 crore): Viability Gap Funding for Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Transit Housing projects. Approximately 30,000 AHP units and 10,000 ARH/Transit units are expected to be supported, with special emphasis on smaller ULBs where projects were earlier unviable.
- Component II (₹685 crore): Direct financial assistance to beneficiaries in the form of labour compensation (for their own contribution or loss of livelihood during construction) and early-completion incentives.
- Component III (₹100 crore): Facilitation of housing loans at affordable rates plus interest-subvention support for the most deprived families.
- Component IV (₹125 crore): Special financial assistance for families displaced due to cluster housing, slum-proofing or other planned interventions.
Every new AHP project developed under BANDHU will follow sustainable-development norms – adequate open spaces, built-in solar power and rainwater harvesting – and will include social infrastructure such as Anganwadi centres, children’s play areas, primary health centres and PDS outlets. Preference in allotment will be given to vulnerable, deprived and persons-with-disability (PwD) citizens.
PMAY-U and PMAY-U 2.0 are already being implemented in all 115 Urban Local Bodies of the state; the newly notified 28 ULBs will also be covered. The complementary BANDHU scheme, together with the recently envisioned “Odisha Housing for All” Policy, is expected to transform urban housing delivery and bring the dream of a pucca home within reach of every eligible family by the end of this decade.
With today’s Cabinet approval, Odisha has once again demonstrated its resolve to turn the national slogan of “Housing for All” into a lived reality for its urban poor – true to the spirit of the word “Bandhu”, a genuine friend.
