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.