PM Modi's Housing for All by 2022 plan gets Cabinet nod
- 18th Jun 2015
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In a major boost for Prime Minister Modi's plans on the social welfare front, the union cabinet has given the go-ahead to one of his pet schemes - The Housing for All by 2022 - that endeavours to provide housing to the urban poor across the country, in addition to approving a substantial increase in interest relief on loan for the urban poor to promote affordable homes.
The Union Cabinet chaired by Prime Minister Narendra Modi has also accepted the recommendations of an Inter-Ministerial Committee to increase interest subvention to 6.50 percent on housing loans to beneficiaries belonging to economic weaker sections (EWS) of society including slum- dwellers and low income groups (LIGs).
The key highlights of this ambitious scheme entail:
- The rehabilitation of people living in slums with the active participation of private developers.
- Promoting affordable housing schemes for the weaker sections of society vide a credit linked subsidy.
- Encouraging the affordable housing concept across the country in tandem with corporate in the public and private sector domain.
- Under the redevelopment plan of slums with the participation of private developers using land as a resource component, a central grant of Rs 1 lakh on an average per beneficiary would be provided.
- States/Union Territories will be free to use this grant for any slum redevelopment schemes to be taken up to make such projects viable, if required.
Economically weaker sections of society and low income groups will also be eligible for a special interest subsidy of approx 6.5 percent on housing loans upto a period of 15 years, under the credit-linked interest subsidy component, enabling them to gain a benefit of approx INR 2.30 lakh each, bringing down the EMI comp-onent on their home loans to approx INR 2,852 per month.
The scheme is to be implemented in three phases, covering the entire gamut of urban India including 4,041 statutory towns, though the initial focus will be on approx 500 Class I cities.
As per existing plans, the first phase of the scheme to be implemented from April 2015-March 2017 will cover approx 100 cities. Another 200 cities are likely to be covered in the second phase beginning from April 2017-March 2019, while the balance cities will form part of the third and final phase of the scheme from April 2019-March 2022.
As per current government estimates, a whopping two crore houses need to be built by the year 2022.
According to government sources, the scheme will also include a technology-based facet involving the adoption of innovative, modern, green technologies and sustainable building materials to ensure the timely and quality construction of homes.
The adoption of modern sustainable technologies is also expected to facilitate the preparation and inclusion of customized layout designs and construction plans as per specific geo-climatic zones and help states and cities in adopting and implementing eco-friendly technologies that can withstand natural disasters.
Sources add that the successful implementation of the Housing For All by 2022 scheme is expected to go a long way in resolving the acute and growing shortage of affordable housing units in the country today.
As per a KPMG report - Decoding Housing for all by 2022 - the country needs to build an estimated 11 crore housing units over a period of seven years at an approx investment of US$2 trillion or INR 128 lakh crore.
Rajesh Kulkarni is a professional content writer and he writes on various contemporary topics.... read more
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