While the state government is set to sign a memorandum of understanding (MoU) with the Central government to implement the second phase of the Pradhan Mantri Awas Yojana (Urban), or PMAY-U 2.0, in Kerala, Opposition Leader Pinarayi Vijayan on Sunday slammed the move, alleging that the government had caved in to the Centre's dictates by failing to take a firm stand.

The criticism follows the cabinet's decision to approve the implementation of PMAY-U 2.0 in Kerala. While the move will enable around 30,000 eligible beneficiaries to receive houses and unlock ₹450 crore in Central assistance, beneficiaries will have to contribute 25 per cent of the total project cost.

This has been a key point of contention raised by the former Chief Minister in a Facebook post, in which he alleged that the state government was “betraying its people by succumbing to politically motivated conditions”, including the Central government's branding requirements.

According to Pinarayi, the scheme also requires the Central government's logo and emblem to be displayed on the homes of beneficiaries.

The financial arrangements under the LDF government's LIFE-PMAY (Urban) scheme have also been altered, Pinarayi said. Under the earlier arrangement, the Centre contributed ₹1.5 lakh towards the total assistance of ₹4 lakh. The remaining ₹2.5 lakh was provided jointly by the state government and local self-government bodies.

Under the revised arrangement, the contribution from local self-government bodies has been reduced, while beneficiaries are required to contribute 25 per cent of the total cost, or ₹1 lakh. “In essence, the four lakh rupees previously provided under LIFE have been reduced to three lakh rupees,” Pinarayi said.

“Out of the more than five lakh homes completed under the LIFE Mission during the LDF government's tenure, 3.72 lakh homes were constructed entirely with funds from the state and local governments, with zero Central contribution. Central assistance of ₹1.5 lakh each was received for 93,600 homes under the PMAY (Urban) scheme. For the 34,600 homes constructed under PMAY (Rural), Central assistance was ₹72,000 each,” Pinarayi said in the post.

He added that, in both categories, the remaining funds required to bring the total assistance to ₹4 lakh were provided entirely by the state and questioned why the UDF government was moving away from the model pioneered by the LDF government.

Pinarayi further said that the Centre had previously exerted pressure to impose its branding on houses that received assistance under the PMAY (Urban) and PMAY (Rural) schemes, but the LDF government had refused to comply. He pointed to what he described as the current UDF government's failure to take a similar stand.