Housing Plan
Cabinet approves 3.6 trln rupees over 5 yrs for new housing scheme
This story was originally published at 06:01 IST on 10 August 2024
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--Cabinet OKs 3.60 trln rupees for middle class housing plan
--Cabinet OKs 30 mln houses under middle class housing plan
NEW DELHI – The Union Cabinet today approved a provision of 3.60 trln rupees for a new housing scheme for the middle class and the economically weaker sections in rural and urban areas, Information and Broadcasting Minister Ashwini Vaishnaw said. The government will facilitate construction of 30 mln houses over five years under the scheme, Vaishnaw said.
Out of the 30 mln houses, 20 mln will be in rural areas and 10 mln in urban areas, Vaishnaw said at a press conference to announce the decisions of the Cabinet. In 2023, Prime Minister Narendra Modi said the government planned to bring in such a scheme.
URBAN YOJANA
The urban sub-part of the scheme will be called Pradhan Mantri Awas Yojana-Urban 2.0 Scheme, as per a press release followed by Vaishnaw's briefing. The government will provide assistance of 2.3 trln rupees under the Urban Yojana, the release said.
There is a Pradhan Mantri Awas Yojana-Urban Scheme in place since 2015. The government has allocated 301.71 bln rupees under the scheme for 2024-25 (Apr-Mar).
Households in the Economically Weaker Section with annual income up to 300,000 rupees, Low Income Group households with annual income from 300,000 rupees to 600,000 rupees, and Middle Income Group households with annual income from 600,000 rupees to 900,000 rupees will qualify for the urban housing scheme.
The scheme will address the affordable housing requirement in urban areas through various verticals--Beneficiary-Led Construction, Affordable Housing in Partnership, Affordable Rental Housing, and Interest Subsidy Scheme.
Under Beneficiary-Led Construction, the government will provide financial assistance to families belonging to the Economically Weaker Section to build new houses on their own available vacant land. "In case of landless beneficiaries, land rights may be provided by states," the government said in the release.
Under Affordable Housing in Partnership, the government will give financial assistance to beneficiaries from the Economically Weaker Section to own houses being built by state governments or private agencies in different partnerships. "Redeemable Housing Vouchers will be given to beneficiaries who purchase houses from private projects," according to the release.
Under Affordable Rental Housing, the government will create adequate rental housing for working women/ industrial workers/ urban migrants/ homeless/ destitute/ students and other eligible beneficiaries, the release said.
Under the Interest Subsidy Scheme, beneficiaries will get interest subvention of 4% on the first 800,000 rupees of a home loan of 2.5 mln rupees with house value up to 3.5 million rupees. The subvention will be available for 12 years. A maximum subsidy of 180,000 rupees will be given to eligible beneficiaries in five-yearly instalments.
The government will also create a Credit Risk Guarantee Fund Trust for the Urban Yojana with a corpus of 30 bln rupees. National Housing Bank will manage this fund.
RURAL YOJANA
The rural sub-part of the scheme will be called Pradhan Mantri Awas Yojana—Gramin, as per a separate press release detailing this segment. The scheme announced today may replace the current rural housing scheme, which began in 2016 under the same name and is set to end this year. The government has allocated 545 bln rupees for the ongoing scheme this year.
The rural scheme announced today will have a total outlay of 3.06 trln rupees, including 2.05 trln rupees from the Centre and 1.0 trln rupees from state governments, as per the release. End
Reported by Krity Ambey
Edited by Rajeev Pai
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