PM Gramin Awas Yojana

Pradhan Mantri Gramin Awas Yojana (PMGAY) previously known as Indra Awas Yojana (IAY), is a social welfare flagship program, created by the Indian Government, to provide the housing for rural poor in India. 

Overview of Scheme

  • This scheme or Yojana was launched by Rajiv Gandhi as Indra Awas Yojana, the then Prime Minister in 1985.
  • It was one of the major flagship programs of the Ministry of Rural Development to construct houses for the BPL population in the villages.
  • Under PMGAY Scheme, financial assistance worth Rs. 1, 20,000 in plain areas and Rs. 1, 30,000 in mountain or difficult areas is provided for the construction of houses. 
  • These houses are equipped with facilities such as toilets, electricity connection, and drinking water (as per convergence with other schemes like Swachha Bharat Abhiyan toilets, Sobhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, etc.
  • Houses in this scheme are allotted in the name of the women or jointly between husband and wife.
  • The construction of the houses is the sole responsibility of beneficiary and contractors’ engagement is strictly prohibited.
  • Sanitary latrine and smokeless chullas are also required to be constructed along with each house for which additional financial assistance is provided from ‘Total Sanitation Campaign’ and ‘Rajiv Gandhi Gramin Vidyutikaran Yojana’ respectively.
  • This scheme is operating since 1985 which provides subsidies and cash assistance to people in village to build their houses, themselves.


Purpose of PMGAY

There is always some purpose for every single step taken by anyone so there must be some purpose behind launching this scheme as well, let’s figure out about that:

  • The broad purpose of this scheme is to provide financial assistance to some of the weakest sections of the society for them to upgrade or construct a house of respectable quality for their personal living. 
  • The vision of the government is to replace all temporary or Kachcha houses from Indian villages.


  • Under this scheme, the eligible candidates are provided by a cash assistance of 1.2 Lakh for constructing their houses in rural areas and an amount of 12 k for construction of toilets.


  • The funds are allocated to the states based on 75% weightage of rural housing shortage and 25% weightage of poverty ratio.
  • The housing shortage is as per the official published figures of the Registrar General of India.
  • Software called ‘AWAAS Soft’ was launched in July 2010 to assist in improved administration of the scheme.
  • The Website is also developed to resolve queries and for help in registration or application for assistance. To visit and check eligibility or other information visit


Impact of the Scheme


  • Since 1985, 25.2 million houses have been constructed under this scheme.
  • Under the Bharat Nirman phase 2, 6 million houses were targeted and 7.1 million actually constructed from 2005- 06 to 2008- 09.
  • Additional 12 million houses were planned to be constructed or renovated under the Bharat Nirman phase 2.

Hopefully, the audacious goal of the Pradhan Mantri Gramin Awas Yojana will be fulfilled and all kachha houses will soon be replaced for the benefit of the needy.