Central Government clears a policy to address shortage of affordable housing in India.

Central government has cleared a policy which will facilitate the allotment of low-cost houses to low income groups (LIG) and economically weaker sections (EWS).

Central government has cleared a policy which will facilitate the allotment of low-cost houses to low income groups (LIG) and economically weaker sections (EWS).

There have been reports which talks about shortage of 19 million houses in India, with majority of them in EWS and LIG categories.  With those dismal stats in mind, the housing and urban poverty alleviation ministry had drafted the policy to help lower income groups and weaker sections. 

Households with an annual income of up to Rs. 2 lakh can apply for the subsidized houses, as per the provisions of this policy.

Low-cost houses under this draft policy will cost Rs. 4-10 lakh. But there has been no cost specified by ministry for affordable house under the scheme.

These houses for LIG and EWS categories would be developed in partnership with either state housing boards or private developers.

Centre has plans to grant Rs. 75,000 per dwelling unit under this scheme to the project developer. Whereas state governments intends to contribute towards this scheme by aiding incentives like providing subsidized land for housing and giving fast project approvals to developers to facilitate accelerated construction.

Loans for these low cost housing and affordable housing with subsidized interest rates can be availed by beneficiaries. Developer/ housing boards will sold these houses at rates fixed by the states and beneficiaries will be selected through draw of lots.

Development of rental housing stock and dormitories for new migrants would also be encouraged under the policy.