India: Central govt sanctions 5 lakh PMAY houses for Andhra Pradesh, Telangana

• Andhra gets 2.25 lakh additional houses, Telengana receives 1.2 lakh more
• Govt plans to complete newly sanctioned houses over next 2-3 years

The Central government has sanctioned a total of 5 lakh houses under the Pradhan Mantri Awas Yojana (PMAY) for Andhra Pradesh and Telangana, creating additional construction activity and potential demand for cement and other building materials.

Andhra Pradesh has received an additional allocation of 2.25 lakh houses, taking the total number of houses made available to the state since the coalition government assumed office to 3 lakh. Telangana has received an additional 1.21 lakh houses, taking its total allocation to 2 lakh.

Construction pipeline gains visibility
The government plans to identify eligible beneficiaries and complete the newly sanctioned houses over the next two to three years. In Andhra Pradesh, 1.78 lakh houses were sanctioned during 2019-2024, of which around 42,000, or nearly 23%, have been completed.

The government is taking steps to complete the remaining houses, which are at different stages of construction. The eligibility income ceiling has also been increased to INR 15,000/month from INR 10,000/month. Combined assistance through various housing schemes could amount to around INR 1.7-1.8 lakh per house.

Cement demand gets potential support
The expanded housing programme could provide an additional demand source for cement in Andhra Pradesh and Telangana as sanctioned houses move into construction. Cement consumption is expected to increase progressively as projects move from beneficiary identification to foundation, structural and finishing stages.

The impact on cement demand is likely to depend on the pace of construction starts and execution. Completion of pending houses in Andhra Pradesh could provide additional support to consumption alongside the newly sanctioned projects.

For cement producers and dealers, the housing allocations could improve visibility of retail cement demand across eligible rural and low-income segments. The impact is expected to emerge progressively rather than immediately, depending on beneficiary selection, fund utilisation, and construction progress.