The Maharashtra government has tightened implementation norms for the Pradhan Mantri Awas Yojana (Urban) 2.0, introducing a pre-construction requirement that developers secure confirmed beneficiary registrations for at least 25 per cent of units in select affordable housing projects before approvals or incentives are granted. The directive, notified in late January, targets Affordable Housing in Partnership (AHP) and public-private partnership (AHP-PPP) projects with Economically Weaker Section (EWS) unit prices priced more than 20 per cent above the state’s Annual Statement of Rates (ASR), aiming to align housing delivery more closely with actual demand and reduce stalled developments.
Under the new framework, developers must demonstrate that one in four homes has a committed purchaser before physical construction begins. For AHP-PPP schemes, this threshold must be met before accessing incentives such as additional Floor Space Index (FSI), a key urban development benefit that enables greater built-up area on the same plot. The policy also shifts the commercial risk of unsold units onto developers, as the state has clarified it will not assume liability for vacant inventory after project completion.State housing officials framed the update as a response to discrepancies identified in detailed project reports under PMAY-Urban 2.0, where variations in pricing and built-up area calculations had complicated approvals and raised concerns about speculative submissions. By standardising key parameters and linking approvals to verified demand, Maharashtra aims to enhance transparency, reduce speculative risk and improve the delivery outcomes for EWS housing, which is central to both social inclusion and urban stability.
Urban development analysts point out that beneficiary linkage can serve as a proxy for market validation, de-risking projects and ensuring public subsidies support units that are likely to be occupied. This matters in a segment where housing affordability remains strained by rising land and construction costs, and where unsold inventory can stall neighbourhood development and strain civic resources. Moreover, confirmed beneficiary commitment can help urban local bodies better plan infrastructure, utilities and services around forthcoming communities.The revised guidelines also introduce standardisation of unit size norms and require implementing agencies to submit key clearances for water supply, sewerage and electricity at the proposal stage rather than post-approval. These procedural requirements are designed to minimise delays during execution and avoid project interruption due to basic infrastructure shortfalls.
Housing sector experts say that while the policy could increase upfront administrative complexity for developers, it may also strengthen the quality and viability of affordable housing pipelines. Ensuring that a significant share of units has end-users confirmed before construction can reduce financial risk, enhance project financing terms, and improve delivery timelines — critical factors in an era of rising interest rates and land prices.However, the move also raises implementation challenges. Developers and implementing agencies will need robust beneficiary identification systems and clear mechanisms for tracking registrations through digital platforms. Urban local bodies will be tasked with streamlining verification processes to avoid delaying approvals. If effectively executed, the revised norms could bring a sharper focus on people-centred delivery within PMAY-Urban 2.0’s broader mandate of inclusive, affordable urban housing.
