The Centre is considering a proposal to widen the scope and size of housing subsidy for the urban poor under the PM Awas Yojana (PMAY), CNBC-TV18 reported on April 24, citing sources familiar to the discussions.
In the expanded ambit of the housing scheme, those who are self-employed, shop keepers as well as small traders are likely to be covered under the scheme, said the source. The subsidised loan that will be extended in the wider scheme is expected to be benchmarked to the price and size of the housing unit. For a house that'll cost buyer Rs 35 lakh, a subsidised loan of up to Rs 30 lakh is being proposed to be extended, learns CNBC-TV18.
In 2021, Centre had ended the Credit Linked Subsidy Scheme (CLSS) under PMAY which had given out subsidised home loans on the basis on income. 25 lakh houses were financed under the CLSS and R 59,000 crore worth of subsidy was extended over a period of five years.
The interim Union Budget 2024-25 on February 1 had allocated Rs 80,671 crore to the flagship housing scheme, boosting the programme further. In her speech, Finance Minister Sitharaman had said that the government will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses.
The PMAY scheme was launched in June 2015, a it aims to provide pucca houses with basic amenities to all eligible urban beneficiaries. The mission now aims to add another two crore houses over the next five years.
Hardeep Singh Puri, the Housing and Urban Affairs Minister had said in January that a proposal would be sent to the cabinet on interest subsidies for urban affordable housing.
(This is a developing story, please come back for more)
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