Odisha Fast-Tracks PMAY Urban 2.0 To Address Lagging Verification and Sanctions

Odisha government has initiated urgent steps to revive implementation of the Pradhan Mantri Awas Yojana – Urban (PMAY-U) 2.0, after concerns mounted over sluggish verification and approval rates under the scheme. As of June 2025, out of the 82,382 applications received since the beginning of the year, only 13,925 have been verified, and just 11,959 converted into formal proposals, raising alarms among housing officials.

A recent high-level review by the state’s housing and urban development department revealed that the Beneficiary-Led Construction (BLC) component accounted for nearly 48,598 of the total applications. Yet, the verification rate stood at a mere 16.9%, with conversion to proposals lagging even further behind at 14.5%. These figures contrast sharply with the urgency of Odisha’s urban housing deficit and the state’s own underwhelming record in PMAY-U Phase 1, where only 12% of eligible urban households benefitted from the central scheme. Officials said the current trajectory could compromise Odisha’s eligibility for central grants and adversely impact access to affordable housing for vulnerable populations. To address the bottleneck, the department has issued urgent directives to Urban Local Bodies (ULBs) across the state to intensify ground-level engagement, particularly in areas where verification and proposal conversion rates fall below the state average.

Field teams have been tasked with expediting household-level verification and ensuring timely digital submission of housing proposals. The government is also strengthening its capacity to issue prompt work orders after receiving project approvals. According to officials, these measures are aimed at reducing the current delays and ensuring more efficient project sanctioning under PMAY-U 2.0. To restore momentum, Odisha recently sanctioned 43 new BLC housing projects covering 3,949 residential units, with a cumulative funding request of ₹256 crore sent to the Centre for clearance. Each unit under the scheme will receive ₹1.5 lakh from the central government, ₹1 lakh from the state, and a beneficiary contribution of ₹4 lakh, following the existing cost-sharing model.

Alongside these measures, the housing department has released a detailed Standard Operating Procedure (SOP) outlining transparent procedures for beneficiary identification, field verification, and allocation. A notable feature of the SOP is the mandatory prioritisation of households with members suffering from locomotor disabilities, reflecting a broader push for inclusive housing. Experts familiar with the PMAY framework have welcomed the SOP and renewed focus on procedural accountability, but stress that structural issues in project implementation persist. These include gaps in ULB capacity, delays in fund disbursal, and limited digital literacy among target beneficiaries. “The new SOP is a much-needed course correction, but field-level coordination and digital workflow efficiency will be critical to meet timelines,” said a senior housing policy expert.

The challenges faced under PMAY-U 2.0 come despite rising urban housing demand in Odisha’s Tier 2 and Tier 3 cities. As rural-to-urban migration intensifies, the pressure to deliver sustainable, low-cost housing has grown sharply. The current application trends reflect this need, but inadequate backend systems and lack of field-level support have held back progress. In the first Central Sanctioning and Monitoring Committee (CSMC) meeting held under PMAY-U 2.0 earlier this year, Odisha managed to secure sanction for just 5,328 units. The state now aims to significantly ramp up its presence in the upcoming rounds of CSMC evaluations.

Eligibility for PMAY-U 2.0 continues to be restricted to economically weaker sections (with annual household incomes below ₹3 lakh) and lower-income groups (between ₹3-6 lakh), with an additional condition that no family member owns a pucca house anywhere in India. State officials are under growing pressure from the Centre to accelerate performance, especially as the PMAY-U 2.0 deadline for project approvals nears. Central authorities have also flagged concerns about underutilisation of funds allocated to Odisha in previous fiscal cycles. Responding to this, the state government has pledged to fast-track new proposal generation and improve fund absorption capacity.

Urban housing researchers say Odisha’s current corrective measures, if effectively implemented, could serve as a replicable model for other states facing similar delays. “The state has made a commendable start by acknowledging the gaps and addressing them early. But consistent monitoring, capacity-building at ULB level, and digital transparency are essential to realise the full potential of PMAY-U 2.0,” said an urban development analyst. As the drive for affordable urban housing intensifies across India, Odisha’s renewed focus on project delivery, inclusivity, and field-level responsiveness may mark a turning point in its housing story. With the right execution momentum, the state could bridge its current gap in urban housing coverage and set the benchmark for performance-led implementation of flagship housing missions.

Odisha Fast-Tracks PMAY Urban 2.0 To Address Lagging Verification and Sanctions