Cabinet increases carpet area of houses under Pradhan Mantri Awas Yojana

The Union Cabinet has approved increase in carpet area of houses eligible for interest subsidy under Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) under Pradhan Mantri AwasYojana (Urban). The purpose is to further enhance the scope, coverage and outreach of Scheme.

Cabinet has approved

• Increasing carpet area in MIG I category of CLSS from existing 90 square metre (sq m) to up to 120 sq m. Under MIG-I category, 4% interest subsidy is provided to beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh, on loan of up to Rs 9 lakh.
• Increasing carpet area in MIG II category of CLSS from existing 110 sq m to up to 150 sq m. Under MIG-II category, beneficiaries with an annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of 3% on loan of up to Rs 12 lakh.

Impact

The limit of 120 sq m and 150 sq m is seen as reasonable enhancement and it will cater to market generally scouted by MIG belonging to two income categories specified in the scheme. The increase in carpet area will enable MIG-I category of individuals to have wider choice in Developers’ projects. Moreover, it will also give boost to sale of ready built flats in affordable housing segment.

Background

Ministry of Housing and Urban Affairs is implementing Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under Pradhan Mantri Awas Yojana (Urban). Under PMAY-U, Government aims to provide houses to all urban poor by 2022. It covers entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities. Intended beneficiaries are Poor people (BPL) and people living under EWS and LIG categories in urban establishments of the country. The ownership of houses will be in name of woman or jointly with husband. Besides, states have flexibility to for choosing best options to meet demand of housing in their states.

Month: Current Affairs - November, 2017