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.

Subsidy on Affordable Houses !

 

In a major push for affordable housing, the Government is set to raise both the subsidy given to developers, as well as the cost ceiling for affordable housing. Affordable housing is the need of the hour for the welfare of the economically weaker section of society.

Affordable Housing is need of the hour

The president Mrs. Prathibha patil says that there are many new poverty elevation programs that govt. is running , she mentioned on Bharat Nirman, a project that plans to double the construction of low-cost houses to 12 million units.” For this to happen, the government is banking on public private partnerships (PPP).

A collaboration between the govt. and the developer will work together to create homes for the  economically weaker section of the society. The cost ceiling is also proposed to be raised substantially. The effects of this raise will be direct.

Now the govt. is also thinking to raise loan subsidy from 1 lakhs to 5 lakhs rupees.   One of the subsidy is 5 per cent per annum on interest charged on the admissible loan up to Rs 1 lakh, for construction or acquisition of a new house.

In a major push for affordable housing, the Government is set to raise both the subsidy given to developers, as well as the cost ceiling for affordable housing.

Similarly, the existing provision under Affordable Housing in Partnership Scheme says the Central assistance under the scheme will be limited to Rs 50,000 per rental/dwelling unit for all units meant for EWS, LIG (lower-income group) and MIG (middle-income group).

The Ministry of Housing and Urban Poverty Alleviation (HUPA) is the nodal ministry for the scheme. The dream can only be successful if the govt. and developers work together.