MUMBAI: The Maharashtra government has tightened the regulations under the Pradhan Mantri Awas Yojana (Urban) 2.0, requiring a minimum of 25% beneficiary registration before construction can begin or benefits can be accessed for certain affordable housing projects.
This requirement applies to projects under the Affordable Housing in Partnership (AHP) and AHP-public private partnership (AHP-PPP) where the sale price of economically weaker section (EWS) homes exceeds the current annual statement of rates (ASR) by more than 20%.
The updated guidelines, announced on January 23, were prompted by a review of detailed project reports (DPRs) submitted under PMAY (Urban) 2.0, which uncovered discrepancies in EWS pricing, built-up area calculations, and documentation across various projects.
The state government, acting on directives from the State Level Appraisal Committee (SLAC) during meetings in August and October 2025, decided to establish standardized guidelines to ensure consistency in project approvals.
Under the new regulations, AHP projects exceeding the ASR threshold will require beneficiary registration for at least 25% of units prior to the commencement of physical construction.
For AHP-PPP projects, attaining beneficiary registration will be necessary before receiving additional floor space index (FSI) under the scheme or before obtaining other benefits from PMAY (Urban) 2.0. Such proposals must be resubmitted to the state-level project management unit after ensuring beneficiary linkage.
The guidelines also standardize unit size criteria for EWS homes. The built-up area for EWS units must not exceed 1.4 times the carpet area, a measure that will be enforced when completing project documents and calculating sale prices. The government resolution (GR) stated this change was essential due to significant variations noted in previous submissions.
Additionally, the housing department has mandated that all implementing agencies procure key no-objection certificates (NOCs) at the proposal stage.
These NOCs include approvals for water supply, sewerage, and electricity from relevant municipal corporations, councils, and authorized agencies. Officials observed that many past proposals either lacked these clearances or stated they would be provided later.
The circular clarifies that the state government will not assume responsibility for unsold or vacant units following the completion of PMAY (Urban) 2.0 projects, placing commercial risk on implementing agencies.
All authorities involved in PMAY (Urban) 2.0 projects must adhere strictly to the revised guidelines during proposal submission.
