These issues were discussed at a workshop organised by the Ministry of Housing and Urban Affairs in association with National Housing Bank in the capital on Wednesday.
Issues faced by financial institutions while extending affordable housing credit to those eligible for subsidy under the Pradhan Mantri Awas Yojana (PMAY) came up for discussion at a workshop organised by the Ministry of Housing and Urban Affairs in association with National Housing Bank in the capital on Wednesday.
Some of these issues include: Clarity on inclusion of certain areas so far uncovered in states and union territories, the definition of affordable housing, relaxation in construction completion period, simplification in approval of building plans, land title issues.
As many as 175 participants comprising senior officials from MoHUA, NHB, State of Gujarat, Madhya Pradesh, Odisha, Tamil Nadu, Tripura and representatives from Sa-dhan, Scheduled Commercial Banks, Housing Finance Companies, Co-operative Banks, RRBs, Small Finance Banks and NBFC-MFIs attended the workshop. They were divided into three groups to discuss the issues, solutions and approaches towards expanding and increasing affordable housing credit under the scheme
The workshop titled Enhancing Housing Credit under Pradhan Mantri Awas Yojana (PMAY) – Urban was chaired by Durga Shanker Mishra, Secretary, Amrit Abhijat, Joint Secretary (MD-HFA), and Sriram Kalyanaraman, MD & CEO, NHB.
“Pursued participants to come up with ideas on how to improve outreach through better information flow, increase credit flow, make application simple, fasten loan disbursal process, use innovative financial methods and reduce interest burden on beneficiaries for affordable housing,” tweeted Durga Shanker Mishra, Secretary, MoHUA.
Briefing participants on the progress made under PMAY Urban, he said that as on date construction of 30.71 lakh affordable houses have been approved for benefit of urban poor in 3102 cities and towns. An overall investment of close to Rs 1,50,000 crore has so far been approved for these projects and that central assistance of Rs 42,628 crore has already been approved for release to states and union territories under PMAY.
The workshop focused on the issues, solutions, approaches and basic framework for extending affordable housing credit through a group discussion forum on each vertical under PMAY – Urban viz., in-situ rehabilitation of existing slum dwellers using land as a resource through private participation, credit linked subsidy scheme, affordable housing in partnership and subsidy for beneficiary-led individual house construction/enhancement, a ministry release said.
Some issues, solutions and approaches deliberated during the workshop included enhanced public awareness through more regional workshops and IEC programmes at branch levels, issue of mortgage guarantee cover to the public lending institutions (PLI), tripartite agreement between sponsoring agency in state, banks and beneficiaries, relaxation in completion certificate norm to five years from three years, uniform performa for building plans/maps approved by the competent authority and clarity in inclusion of certain areas hitherto uncovered in states and union territories, it said.MoHUA will now examine the proposals to bring forth even more participation from the financial community towards achieving realisation of the vision of Housing for All by 2022, it said.