Kochi: The state government is yet to sign the memorandum of understanding for the second phase of the Pradhan Mantri Awas Yojana (PMAY) housing scheme, implemented with central assistance, raising concerns that pending work from the first phase could be affected.

Phase 1 of the PMAY Urban Life Mission is set to conclude on March 31. While the construction period has been extended until December 31, office operations and related activities will shut down next month. Of the 1,27,048 houses approved in the first phase, 87,644 have been completed, while 39,404 remain under construction.

The construction contract with the nodal agency, Kudumbashree, is also set to end on March 31. Once Kudumbashree closes the offices established for the project and dismisses staff, ongoing construction under the first phase will face uncertainty. Additionally, 20,000 applications have been submitted for the second phase, with more continuing to arrive through Akshaya centres and other channels.

The central government had informed the state about the delay in signing the agreement, announced on March 17, 2024, but no favourable response has been received. Initially, the state objected to the branding of the scheme. Later, the central government's decision to raise the state’s financial contribution from ₹50,000 to ₹1 lakh became another point of contention. The state's severe financial crisis remains a major hurdle in continuing the project.