PMAY vs EWS/LIG: What Is the Difference and Which Scheme Is Better for Your Project?

Summary : This blog explains the key differences between PMAY and EWS/LIG affordable housing schemes, covering FSI benefits, flat size requirements, Agricultural/No Development Zone restrictions, commercial area provisions, flat sale and amalgamation rules, and Regional Plan Area limitations. It also highlights important eligibility and planning conditions that developers, architects, and landowners should check before choosing a scheme or starting an affordable housing project. 

Yesterday we had a meeting with a major developer regarding affordable housing, and he asked me — “Sir, PMAY and EWS/LIG are both affordable housing schemes, right? So what difference does it make which project we do?” If you’re thinking the same thing, you’re definitely headed for a loss of lakhs of rupees! Let me explain how. 

(Alternate version: Yesterday we saved a major developer from a loss of lakhs of rupees… He asked us just one question — “Sir, PMAY and EWS/LIG are both affordable housing… So what difference does it make which project we do?” The answer we gave him completely changed his project’s entire financial calculation!)

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Hello, today we’re going to look at the differences between PMAY and EWS/LIG that every developer, architect, and land owner absolutely needs to know.

Point 1 – FSI

Let’s start with FSI… In PMAY, no premium is charged up to 2.5 FSI. But in EWS/LIG, if you take FSI beyond the basic FSI, you have to pay a premium of 15% of the ASR rate on that additional FSI. And this is exactly where many people make a mistake.

Point 2 – Flat Sizes

Now let’s come to flat sizes… In PMAY, the carpet area is decided by the government. But in EWS/LIG, each flat can have a carpet area of at most 50 sq.m. On top of that, at least 40% of the flats must have a carpet area of less than 30 sq.m. — this is mandatory.

Point 3 – Agricultural / No Development Zone

If your plot is in an Agricultural – No Development Zone… then under both schemes you get a maximum FSI of 1.0, and for that the plot must also have a road of at least 9 meters. And the responsibility for all infrastructure — water, drainage, roads — rests entirely with the developer.

Point 4 – Commercial Area

In both schemes, up to 10% of the basic FSI can be used for commercial purposes. This means facilities like grocery stores, medical shops, clinics, or other daily-need amenities can be provided. But the entire project cannot be made commercial.

Point 5 – Flat Sale & Amalgamation Restrictions

Neither PMAY nor EWS/LIG permits combining two or more flats to create one larger flat. The reason behind this is that the core objective of these schemes is to make these homes available to the maximum number of families at affordable rates. There’s another important rule in the EWS/LIG scheme… a family can sell only one home. For this, an affidavit is taken from the buyer confirming that neither he nor his close relatives have taken another home under this scheme in their name. In PMAY too, the allocation of homes is done strictly according to the guidelines set by the state and central governments.

Point 6 – Regional Plan Area Restrictions

If your project is located in a Regional Plan Area, then neither PMAY nor EWS/LIG applies at all. These schemes can only apply to locations within 2 kilometers of a Municipal Corporation boundary, or within 1 kilometer of a Municipal Council or Nagar Panchayat boundary.

Conclusion 

In other words, if your plot falls outside this distance, you may not get the benefit of these schemes at all. So make sure to check this rule before starting your project. Because if this small rule is overlooked, your entire project could run into trouble.