The target groups for houses under the Indira Awas Yojana (IAY) are below poverty line households living in the rural areas belonging to Scheduled Castes/ Scheduled Tribes, freed bonded labourers and non-SC/ST BPL rural households, widows and next of-kin to defence personnel/paramilitary forces killed in action residing in rural areas (irrespective of their income criteria), ex-servicemen and retired member of paramilitary forces fulfilling the other conditions, by providing them a lumpsum financial assistance.

IAY is a Centrally Sponsored Scheme funded on cost-sharing basis between the Govt. of India and the State Government in the ratio of 90:10 for the North-East States.

The ceiling on grant of assistance per unit cost under the IAY for construction of new house in Mizoram is Rs. 75,000/- and upgradation of unserviceable household at Rs. 15,000/-.