Thiruvananthapuram: The Kerala Cabinet has approved the implementation of the second phase of the Pradhan Mantri Awas Yojana (Urban) in the state, which will enable around 30,000 eligible beneficiaries to receive houses.

The state government will sign a memorandum of understanding (MoU) with the Central government to implement PMAY-U 2 in Kerala.

The decision will also help Kerala avoid losing ₹450 crore in Central assistance that would otherwise be available under the scheme.

Under the revised Central guidelines, beneficiaries will have to contribute 25 per cent of the total project cost. Each eligible homeless beneficiary will receive a total assistance of ₹4 lakh, with ₹1.5 lakh coming from the Central government and ₹1 lakh from the state government. The remaining amount will have to be contributed by the municipality and the beneficiary.

Under the PMAY (Urban)-LIFE scheme currently being implemented in Kerala, homeless beneficiaries who own land are provided ₹4 lakh in total assistance for constructing a house. Of this, ₹1.5 lakh is the Central share, ₹50,000 is the state share and ₹2 lakh is contributed by the municipality.

The Cabinet approved the steps to implement the second phase as the first phase of the scheme is scheduled to be completed by September 30, 2026.