The centre, on November 16, 2017, approved the enhancement of the carpet area of houses for the middle income group (MIG) category, under the Pradhan Mantri Awas Yojana – Urban (PMAY-U).
Under the MIG-I category, the carpet area of the houses has been enhanced from 90 sq metres to 120 sq metres, while under the MIG-II segment, it has been increased to 150 sq metres from the current 110 sq metres, union minister Ravi Shankar Prasad told reporters, while briefing them about the union cabinet decisions. Under the MIG-I category, a four per cent interest subsidy is provided to the beneficiaries, whose annual income is between Rs six lakhs and Rs 12 lakhs, on a loan of up to Rs nine lakhs. Similarly, under the MIG-II category, the beneficiaries with an annual income of Rs 12 lakhs to Rs 18 lakhs, get an interest subsidy of three per cent on a loan of up to Rs 12 lakhs.
The National Real Estate Development Council (NAREDCO), the apex body of real estate industry in India, was quick to welcome the government’s decision. Rajeev Talwar, chairman and Niranjan Hiranandani, president of NAREDCO, felt that this decision of the government, besides helping in clearing unsold stock, would also encourage developers to launch new projects and boost GDP growth and employment. This decision will now bring the entire demand for affordable housing under the interest subvention scheme, accounting for almost 96 per cent of the total demand for housing in the country, they said.
Under the PMAY-U, the Centre aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas.