Indira Awaas Yojana, which used to be a component of Jawahar Rozgar Yojana became an independent Scheme from 1997-1998 onwards.
Its objective is the 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 the 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/ up-gradation 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 to Rs. 70,000.
From the year 2016-2017, IAY has been revamped as Pradhan Mantri Awaas Yojana (Gramin).