Kerala Opposition Slams Cut in LIFE Mission Housing Aid Under Central Scheme

The Kerala government's decision to reduce housing assistance under the LIFE Mission from ₹4 lakh to ₹3 lakh has drawn sharp criticism from Leader of the Opposition Pinarayi Vijayan. The reduction comes as the state implements the second phase of the Pradhan Mantri Awas Yojana-Urban (PMAY-U 2.0), accepting conditions that the previous Left Democratic Front (LDF) government had repeatedly opposed.

Under the revised PMAY-U 2.0 guidelines, beneficiaries are required to bear 25% of the total project cost, amounting to ₹1 lakh. Vijayan, in a social media post, said the United Democratic Front (UDF) government's decision would destroy the basic tenets of the LIFE Mission scheme, which had provided homes to lakhs of homeless people and enabled them to live with dignity.

“The State government's decision to bow to the anti-people conditions imposed by the Centre cannot be accepted,” Mr. Vijayan said. He added that the scheme pursued by the previous LDF government had no provision for collecting a beneficiary contribution from eligible people. The present government, however, has “deceived the people” by yielding to the politically motivated conditions of the Centre, including branding the Central government in the implementation of the scheme.

Under the earlier arrangement, the Centre's share was ₹1.5 lakh. Beneficiaries did not have to spend any money from their own pockets, as the remaining ₹2.5 lakh was contributed by the State government and local self-government institutions. Under the new arrangement, the share of local bodies has been reduced.

“In short, the State government is now imposing a liability of ₹1 lakh on homeless poor people. Also in effect, the ₹4-lakh assistance provided under the LIFE Mission has been reduced to ₹3 lakh,” Mr. Vijayan said.

He also criticised the Centre's stipulation that its logo and emblem be displayed on houses constructed under the scheme. He said the State government's argument that the decision was necessary to avoid losing the Centre's ₹450-crore share was “ridiculous,” instead of opposing a condition that undermined the self-respect of poor beneficiaries.

Mr. Vijayan also said more than five lakh houses had been completed under the LIFE Mission during the previous LDF government, of which 3,72,000 were constructed entirely with contributions from the State government and local self-government institutions. According to him, the Centre had not provided any assistance for these houses. Another 93,600 houses had received Central assistance of ₹1.5 lakh each under the PMAY (Urban) scheme, while 34,600 houses constructed under the PMAY (Gramin) scheme had received Central assistance of ₹72,000 each. The remaining amount required to meet the ₹4-lakh assistance under both categories was provided by the then State government and local self-government institutions.

The state government has not yet responded to the allegations. The decision to implement PMAY-U 2.0 is part of the state's efforts to secure central funding for housing, a key welfare priority. The revised guidelines aim to streamline implementation but have raised concerns among beneficiaries and opposition parties about the increased financial burden on the poor.