First instalment of funds to construct rural houses under PMAY on October 2: CNBC-Awaaz

The next phase of work to construct rural houses under the extended Pradhan Mantri Awas Yojana (PMAY) is expected to begin shortly, and the first tranche of funds for construction will be released on October 2, CNBC-Awaaz reported citing sources.

PM Modi is likely to release the first instalment for the construction of 10 lakh houses on Gandhi Jayanti this year.

The payment will be construction linked and staggered over seven stages, and the construction work is expected to be completed in 18 months, sources said. An allocation of Rs 1.20 lakh crore has been allocated to be released in this phase to the eligible applicants.

Prime Minister Modi's first Cabinet decision after assuming charge for the third term was the decision to provide assistance to three crore additional rural and urban households over next five years. Of these three crore new houses, two crore homes were sanctioned to come up in rural areas.