PMAY-Urban Funds Row: Andhra Pradesh Faces Burden of Completing 4 Lakh Houses

The Andhra Pradesh government is facing an additional financial burden in completing houses sanctioned under the Pradhan Mantri Awas Yojana-Urban (PMAY-U). According to the report, nearly ₹2,900 crore released by the Centre between 2019 and 2024 for housing construction through municipalities and urban development authorities was allegedly diverted to other requirements during the previous YSRCP government. The report further states that the Centre has now informed the state that its financial assistance for the houses sanctioned earlier has been exhausted and that the remaining works will have to be completed using state funds. Around four lakh houses are reportedly still at different stages of construction.

Under PMAY-Urban, 19.07 lakh houses were sanctioned for Andhra Pradesh, of which beneficiaries began construction of 15.38 lakh houses. While 11.38 lakh houses have been completed, construction of around four lakh houses is still pending. At the time the previous government ended its term in May 2024, construction had not begun on around 3.69 lakh sanctioned houses. Although the Centre extended the scheme deadline twice following the state government’s request, houses that had not commenced construction by December 2025 are reportedly no longer eligible for central assistance. Meanwhile, PMAY-Urban 2.0 has been launched, with another one lakh houses sanctioned for Andhra Pradesh. The first phase of the scheme has been extended only until September, increasing the pressure on the state government to complete eligible pending houses within the available period.