Mapping MoHUA (Ministry Of Housing And Urban Affairs): Schemes, Initiatives, And Committees – IMPRI Impact And Policy Research Institute

Policy Update
Meenu Mohan

History

The Ministry of Housing and Urban Affairs (MoHUA) of India was established on May 13, 1952, as the Ministry of Works, Housing & Supply. Over time, it underwent several name changes reflecting its evolving focus on urban development. The most recent significant restructuring occurred in 2004, where it split into two ministries, the Ministry of Urban Development and Ministry of Urban Employment & Poverty Alleviation. The latter was renamed in 2006 as the Ministry of Housing & Urban Poverty Alleviation, which eventually merged back into one entity. The Ministry’s mandate has continuously expanded to address urban development, housing, and poverty alleviation challenges.

Mandate

The MoHUA is the apex national authority responsible for urban development, housing policy formulation, and coordination with other ministries, state governments, and urban local bodies. While urban development is primarily a state responsibility, the Government of India influences national policies, funds state projects through centrally sponsored schemes, and provides external financial assistance. MoHUA’s responsibilities also extend to the administration of government properties, urban transport planning, and the formulation of housing policies and urban employment programs. It is involved in slum clearance, urban planning, water supply, sanitation, and international cooperation in urban development.

Key functions include oversight of urban transport systems, development of metropolitan areas, administration of Delhi-related urban affairs, and international technical assistance in housing. The Ministry is also responsible for administering several important urban legislations and institutions, such as the Real Estate (Regulation and Development) Act, 2016, and the Delhi Development Authority.

1) National Mission on Sustainable Habitat (NMSH) 2021-30

• Aim: To foster low-carbon urban growth and enhance resilience to climate impacts under India’s National Action Plan for Climate Change. It aligns with the Paris Agreement and SDGs, supported by the Ministry of Housing and Urban Affairs and evaluated through the ClimateSmart Cities Assessment Framework.
• Focus: Energy-efficient buildings, clean mobility, climate-sensitive urban planning, and waste management, with an emphasis on inclusiveness and disaster resilience.
• Source: https://mohua.gov.in/upload/uploadfiles/files/NMSH-2021-30.pdf

2) Pradhan Mantri Awas Yojana – Urban (PMAY-U)

PMAY-U 2.0 is a government initiative aimed at providing affordable housing to one crore families. Key features include:

• Eligibility: Economically Weaker Section (EWS), Low and Mid Income Group without existing pucca houses.
• Key verticals: Beneficiary-Led Construction, Affordable Housing in Partnerships and Rentals, and Interest Subsidy Scheme.
• Focus: Technology, innovation, and equity for vulnerable groups.
• Success: PMAY-U 1.0 has already delivered over 8.5 lakh houses.
• Source: https://pmaymis.gov.in/

Sub-Schemes 

1. Affordable Rental Housing Complexes (ARHC) scheme: 

Purpose: Provide affordable housing for urban migrants and the poor.
Benefits: Housing near workplaces, reduced travel time, improved productivity.
Approach: Convert vacant government houses, build new ARHCs on public/private land.
Incentives for developers: Concessional loans, tax exemptions, technology grants.
Objectives: Improve living conditions, create jobs, promote urban investment, enhance productivity, sustainability.

2. Global Housing Technology Challenge-India (GHTC-India)

• Purpose: To identify and mainstream innovative, sustainable, eco-friendly, and disaster-resilient construction technologies for the housing sector.
• Components:

1. Grand Expo and Conference: Biennial event for knowledge exchange and business networking.
2. Lighthouse Projects: Demonstrate selected technologies in real-world settings.
   1. Six projects across India, each with 1,000 houses.
   2. Showcase six distinct innovative technologies.
   3. Aim for expedited construction, lower costs, higher quality, and sustainability.
3. Affordable Sustainable Housing Accelerators (ASHA): Support and encourage Indian innovations and potential future technologies through the ASHA-India program .
   1. Catalyzes research and development in housing construction and materials.
   2. Supports potential future technologies through incubation and acceleration.
   3. Focuses on pre-prototype and post-prototype applicants.

3. CLSS Awas Portal (CLAP)

• Purpose: A web-based platform for real-time monitoring of Credit Linked Subsidy (CLSS) applications under PMAY-U. A streamlined and user-friendly experience for beneficiaries while also improving the efficiency of the CLSS process.
• Benefits: Improved transparency, efficiency, and reduced grievances.
• Key features:
  • Tracking system for beneficiaries
  • Aadhaar verification and de-duplication at application submission
  • Individual application processing
  • Timely subsidy release

3) Smart Cities Mission

Launched: In 2015 by the Prime Minister.
Objective: Promote cities with core infrastructure, clean environment, and quality of life.
Focus: Economic growth, social, economic, physical, and institutional development.
Funding: Central government provides Rs. 48,000 crores, matched by states/ULBs.
Emphasis: Public-private partnerships and citizen participation.
Key principles: Community-centric, resource efficiency, federalism, innovation, sectorial and financial convergence, technology as a tool (not the goal).
Source: https://smartcities.gov.in/about-the-mission

4) PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)

• Purpose: To provide working capital loans to street vendors affected by COVID-19.
• Benefits: Collateral-free loans up to Rs. 10,000, interest subsidy, and incentives for digital transactions.
• Eligibility: Street vendors identified by ULBs or with recommendation letters.
• Key features:

1. Central Sector Scheme fully funded by the Ministry of Housing and Urban Affairs.
2. Available in States/UTs with notified rules under the Street Vendors Act, 2014.
3. Prioritizes vendors who have been identified in surveys or have been issued certificates of vending.
4. Provides for identification of vendors who may have left their native places due to COVID-19.
5. Offers interest subsidy and incentives for digital transactions.

Source: https://pmsvanidhi.mohua.gov.in/Home/Schemes

5) Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

• Purpose: To improve quality of life in urban areas by providing basic amenities like water supply, sewerage, and transportation.
• Focus: Infrastructure creation that directly benefits citizens.
• Key areas: Water supply, sewerage, parks, public transport, pollution reduction.

Project components: Water supply system, Sewerage, Septage, Storm water drainage, Urban transport, Green space and parks, Reforms management, and Capacity building

Coverage: 500 cities with populations over 1 lakh.

Funding: Rs. 50,000 crores over five years, shared equally by central and state governments.

Reforms:

• Encouraging states to improve ULB financial health, citizen services, transparency, and cost reduction.
• Promoting model building bylaws and credit rating.
• Supporting energy audits for pumping systems.

Source: https://mohua.gov.in/cms/amrut.php

6) Swachh Bharat Mission – Urban (SBM-U)

• Purpose: To eliminate open defecation and ensure proper waste management in urban India.
• Phases: Launched in 2014, with phase 2 starting in 2021.
• Vision: “Garbage Free” status for all cities by 2026.
• Objectives:

1. Waste segregation at source.
2. 100% door-to-door waste collection.
3. Scientific waste management.
4. Remediation of legacy dumpsites.
5. Safe handling and disposal of fecal sludge and used water.

Components: Household toilets, Community toilets, Public toilets, Solid waste management, IEC and public awareness, and Capacity building and administrative expenses  

Expected outcomes: Garbage Free certification for all statutory towns, ODF+ status for all statutory towns, ODF++ status for towns with less than 1 lakh population, and Water+ status for at least 50% of towns with less than 1 lakh population.

Source: https://mohua.gov.in/cms/swachh-bharat-mission.php

7) National Heritage City Development and Augmentation Yojana (HRIDAY)

• Launched: In 2015 by the Ministry of Tourism (Implemented by MoHUA).
• Purpose: To preserve heritage character and promote urban development in selected cities. 
• Focus: Revitalization of heritage-linked infrastructure, including water supply, sanitation, drainage, waste management, and public spaces.
  •  The HRIDAY scheme focuses on four thematic areas: Physical Infrastructure, Institutional Infrastructure, Economic Infrastructure, and Social Infrastructure, aimed at reviving and revitalizing the soul of heritage cities. 

Benefits:

• For residents: Improved quality of life, cultural pride, economic opportunities.
• For tourists: Enhanced cultural experiences, amenities, safety, and accessibility.
• For businesses: Expanded market opportunities, investment incentives, preservation of traditional crafts.
• For local authorities: Strengthened governance, increased revenue, enhanced partnerships.

Source: https://mohua.gov.in/upload/uploadfiles/files/GuidelinesHRIDAY.pdf

8) North Eastern Region Urban Development Programme (NERUDP)

• Purpose: To improve urban infrastructure in North Eastern states.
• Funding: Jointly funded by the Ministry of Urban Development and Asian Development Bank.
• Focus: Water supply, sewerage and sanitation, solid waste management, capacity building, and institutional reforms.
• Implementation: In the capital cities of Agartala, Aizawl, Gangtok, and Kohima.
• Timeline: Projects started in 2009, planned for completion by 2019.

Funding Mechanism:

• Ministry releases funds to states on a reimbursement basis.
• Funding ratio: 90% grant and 10% loan.

Source: https://mohua.gov.in/cms/nerudp.php

9) Lump Sum Provision scheme for the benefit of North Eastern Region (NER) including Sikkim

• Purpose: Provides additional funding for urban development in NER.
• Funding: 90% Central Grant, 10% State Share.
• Launched: 2001-02.

Eligible Projects:

• Slum redevelopment, affordable housing, sanitation, renewable energy, skill training, multi-utility centers, markets, women’s hostels.

Project Approval:

• Implementing agency prepares DPR.
• State government submits DPR to MoHUPA with priority list and considerations.

Outcomes: 19 projects sanctioned in 16 towns with a total funding of Rs. 107.36 crore.

Source: https://mohua.gov.in/cms/lumpsum-provision-scheme-for-the-benefit-of-ner-including-sikkim.php

10) National Urban Livelihoods Mission (NULM)

• Purpose: Empowers urban poor through self-employment and skill development.
• Target: Urban poor, including homeless and street vendors.
• Key Features: Organizes urban poor into institutions, creates opportunities for skill development and employment, facilitates access to credit, provides shelter.
• Funding: Shared by Centre and States.
• Values: Ownership, transparency, accountability, partnerships, community self-reliance.
• Source: https://mohua.gov.in/cms/about-day-nulm.php

11) Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

• Purpose: To improve urban infrastructure and provide basic services to the urban poor, create economically productive, efficient, equitable, and responsive cities through urban infrastructure development and social reforms.
• Components: Basic Services for Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP).
• Coverage: 65 cities under BSUP, 887 cities under IHSDP.
• Funding: Shared between Central and State governments, with varying ratios based on city size and region.
• Key reforms: Earmarking 25% of municipal budget for urban poor, implementing 7-Point Charter, reserving 25% of developed land for affordable housing.
• Source: https://mohua.gov.in/cms/jawaharlal-nehru-national-urban-renewal-mission.php

12) Rajiv Awas Yojana (RAY)

• Purpose: Achieve “Slum-free India.” Aims to transform slums into inclusive and equitable neighborhoods.
• Focus: Tackle slums, provide basic amenities, address underlying causes.
• Key Initiatives: Bring slums into the formal system, provide housing and basic amenities, facilitate affordable housing, strengthen institutions, empower communities.
• Funding: Central financial support to states/UTs/ULBs.

Sub-Schemes

• Affordable Housing in Partnership (AHP)

• Purpose: To increase affordable housing stock through public-private partnerships.
• Funding: Central support of Rs. 75,000 per EWS/LIG dwelling unit.
• Eligibility: Projects with at least 250 dwelling units, of which at least 60% must be EWS/LIG.
• Benefits: Central funding for construction of affordable housing.

• Credit Risk Guarantee Fund Trust (CRGFT)

• Purpose: Facilitate credit for urban poor, promote affordable housing. Aims to address affordable housing deficit and facilitate access to housing loans for urban poor.
• Funding: Rs. 1200 crore (Centre: Rs. 1000 crore, States: Rs. 200 crore).
• Mechanism: Provides credit risk guarantees to lending institutions.
• Eligibility: New or existing individual EWS/LIG borrowers and eligible groups.
• Guarantee cover: Up to 90% of the amount in default.

Key Features:

• Government-supported credit risk guarantee fund.
• Collateral-free housing loans for urban poor.
• Enhances lender confidence.
• Administered by CRGFT under Indian Trust Act.
• Managed by Board of Trustees.
• Serviced by the National Housing Bank.

Expected Impact:

• Catalyze credit flow of Rs. 20,000 crore.
• Create an enabling environment for affordable housing.
• Empower urban poor.

• Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

• Purpose: Provide interest subsidies to EWS/LIG for housing. Aims to improve access to affordable housing for urban poor.
• Funding: Rs. 1,100 crores for 11th Five Year Plan.
• Interest Subsidy: 5% per annum on loans up to Rs. 1,00,000/-.
• Loan Repayment: 15-20 years.

Challenges and Revisions:

• Low uptake due to banks’ reluctance.
• Dovetailed with Rajiv Awas Yojana (RAY).
• Revised scheme introduced in 12th Five Year Plan.

Revised ISHUP Scheme:

• Extends benefits to beneficiaries of IHSDP and BSUP.
• Offers interest subsidy for incremental housing for slum-dwellers.
• Financial implication: Rs. 2,100 crores for 5.7 lakh beneficiaries.
• Rajiv Rin Yojana (RRY):

• Increases loan ceiling.
• Provides 5% interest subsidy.
• Financial implication: Rs. 2,900 crores for 2.37 lakh beneficiaries.

Source: https://mohua.gov.in/cms/raji-awasyojana.php

13) Refinance Scheme for Urban Housing Fund

• Purpose: Mitigate housing shortage, improve credit availability for lower income segments.
• Funding: Rs. 2000 crore.
• Mechanism: NHB provides refinance assistance to PLIs.
• Eligibility: Housing loans up to Rs. 10 lakhs for eligible individuals in urban areas.
• Refinance Extent: NHB provides refinance up to 100%.
• Tenure of Refinance: 3 to 7 years.
• Interest Rates: Fixed rates, with on-lending rates not exceeding 2% over NHB’s maximum refinance rate.
• Repayment: Quarterly basis.
• Source: https://mohua.gov.in/upload/uploadfiles/files/10RFUrbanHousingFundUCBs.pdf

14) Refinance Scheme for Affordable Housing Construction

• Purpose: Support supply of affordable housing by providing cheap loans to lenders.
• Eligibility:
  • Lending Institutions: Banks and Housing Finance Companies.
  • Implementing Agencies: Public agencies or private developers with a good track record.
  • Housing Projects:
    • At least 60% of units with carpet area under 60 sqm and costing under Rs. 30 lakh.
    • Minimum 20% promoter contribution (private developers).
    • Project approvals and clearances in place.
• Refinance Details:
  • Interest rates: concessional, fixed or floating.
  • Tenure: maximum 5 years, co-terminus with PLI’s loan.
  • Extent: for project portion meeting affordability criteria.
  • Security: mortgage on project land/property and other collateral.
  • Repayment: quarterly installments for principal and interest.

Source: https://mohua.gov.in/upload/uploadfiles/files/12RFAffordableHousingFinance.pdf

15) Special Urban Housing Refinance Scheme for Low Income Households

Summary:

This scheme by NHB helps low-income households in urban areas access affordable housing loans.

Eligibility:

• Borrowers: Low-income households with annual income ≤ ₹2 lakh, deriving income from informal sources (self-employment, casual jobs, unorganized sector).
• Loans: Up to ₹5 lakh for purchase, construction, renovation, or upgradation of a dwelling unit in an urban area (as per 2011 Census).
• Lending Institutions: Scheduled banks, regional rural banks, housing finance companies, urban/scheduled cooperative banks, apex credit housing finance societies.

Key Features:

• Concessional interest rates.
• Loans must meet social & environmental due diligence requirements.
• Refinance covers 100% of the eligible loan amount.
• Loan tenure: minimum 5 years, maximum 15 years.
• Repayment: quarterly installments for principal and interest (after 1 quarter moratorium).
• NHB reserves the right to modify the scheme at any time.

Source: https://documents1.worldbank.org/curated/en/772071569855495569/pdf/India-Low-Income-Housing-Finance-Project.pdf

16) Scheme for Satellite Towns around seven megacities

• Purpose: Develop satellite towns to reduce pressure on large cities.
• Focus: Urban infrastructure, sustainability, PPPs, affordable housing, ULB reforms.
• Scope: Satellite towns with populations of 3-5 lakh or 5-10 lakh.
• Duration: Co-terminus with the 11th Five Year Plan.

Key Steps:

1. Comprehensive City Development Plan
2. Integrated Planning Coordinated between mother city and satellite towns.
3. Project Appraisal
4. Establish Committees for Sanction and Monitoring

Source: https://mohua.gov.in/upload/uploadfiles/files/guideline_satellite.pdf

Additional Resources

About the Contributor– Meenu Mohan is a Research Intern at the Impact and Policy Research Institute, and holds a BSMS Degree in Mathematics from IISER, Bhopal. Her research interests include Data Analytics, Foreign Policy and Geopolitics, and Disarmament.

Acknowledgement– The author extends sincere thanks to Dr. Arjun Kumar and Aasthaba Jadeja. 

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