Indira Awaas Yojana, which used to be a component of Jawahar Rozgar Yojana became an independent Scheme from 1997-1998 onwards. Its objective is construction of free houses to members of the Scheduled Castes/ Scheduled Tribes, Freed Bonded Labourers in Rural areas and also to non SC/ST rural poor living below poverty line. The beneficiaries are selected from the Below Poverty Line (BPL) list approved by the Grama Sabha. Atleast 60% of the total IAY allocation during a financial year should be utilized for construction/ upgradation of dwelling units for SC/ST BPL rural households. A maximum 40% of allocation is for non- SC/ST BPL rural households. 3% of the above categories should be allocated for physically and mentally challenged persons. Government of India has also asked the States to earmark 15% of the beneficiaries from amongst minorities. It is funded by the Centre and State in the ratio of 75:25.

         Upto 2011-12, the unit cost of the house constructed under Indira Awaas Yojana was Rs.45,000/-  Out of this, the Central share was Rs.33,750/- and the State’s share was Rs.11,250/-.  Due to considerable rise in the cost of construction materials, this Government has increased the State additional grant for RCC Roofing cost from Rs.30,000/- to Rs.55,000/- in G.O.No.87, RD&PR (CGS1) dated 16.11.2011.  Hence, during 2011-12, the unit cost of IAY house in Tamil Nadu was Rs.1 lakh of which the State Government alone has contributed Rs.66,250/- (66.25%) and the Centre’s Share is Rs. 33,750/- (33.75%). .

         From the year 2011-2012 to 2015-2016, 4,41,637 houses have been taken up at the cost of Rs.4875.728 crore.

         Further, the sharing pattern of Central and State has been changed as 60:40 from the year 2015-16 onwards. 

         From the year 2015-16 onwards, payments to the beneficiaries are being credited to their bank account through Public Financial Management System (PFMS).  

         For the year 2015-16, orders have been issued in G.O.(Ms).No.59, RD & PR (CGS.1) Dept., dt.15.04.2015 to converge IAY with MGNREGS by providing 90 mandays to each beneficiary and also order has been issued to converge IAY under SBM(G) scheme by providing Rs.12,000 to construct IHHL.  

         For the year 2015-16, 45,788 houses have been allotted under Pradhan Mantri Awaas Yojana (Gramin) - Special Project (Floods).  

         From the year 2016-2017, IAY has been revamped as Pradhan Mantri Awaas Yojana (Gramin) and Government of India have accorded sanction to construct 1,31,831 houses at an enhanced unit cost of Rs.1.20 lakhs as detailed below  

Pradhan Mantri Awaas Yojana (Gramin)

• Central share - 60% & State share - 40%
• Central share - Rs.72,000/- & State share - Rs.48,000/-
• RCC roofing cost - Rs.50,000/-
• Unit cost - Rs.1.70 lakhs
• Total allocation - Rs.2304.405 crores
  (Central share - Rs.987.150 crore & Unit cost State share + Additional roofing cost = Rs.658.100 crore + Rs.659.155 crore = Rs.1317.255 crore)