The Prime Minister’s Office (PMO), recently held meetings to discuss deliberations around undertaking projects in the PPP mode, to boost the supply of low-cost houses.
This development comes in the backdrop of the thrust given by the government, to implement the Pradhan Mantri Awaas Yojana (PMAY) scheme, as part of Narendra Modi’s ambition of providing ‘Housing For All by 2022’, when the country celebrates its 75 years of independence. The meeting called by the prime minister’s principal secretary Nripendra Misra, discussed how the benefits of the interest subsidy on affordable housing could reach the prospective home buyers at the earliest, sources said. The real estate developers were represented by two apex bodies – CREDAI and NAREDCO.
The real estate sector’s representatives flagged the difficulties that they faced in launching projects in smaller cities because of the specifications under the PMAY scheme and wanted some relaxation on that front, the sources said.
About two months back, minister for Urban Development and Housing and Urban Poverty Alleviation, M Venkaiah Naidu had said he was ‘disappointed’ that not a single proposal had come from the private builders for the affordable housing projects. He had said that reasons for this needed to be found out.
The government, in a bid to give a boost to the real estate sector, had accorded infrastructure status to the affordable housing segment in this year’s budget.
On December 31, 2016, prime minister Narendra Modi had announced an interest subsidy of up to 4% on loans taken in the new year, under the Pradhan Mantri Awaas Yojana. In urban areas, housing loans of up to Rs 9 lakhs and up to Rs 12 lakhs, will receive interest subsidy of 4% and 3% respectively, while in rural areas, loans up to Rs 2 lakhs will get an interest subvention of 3%.
Modi, in his national address on new year’s eve, had also said 33% more homes will be built for the poor under this scheme in rural areas. “Even so many years after independence, millions of poor do not have their own homes. The government has taken some major decisions to ensure homes for the poor, the neo-middle class and the middle class,” Modi had said.