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Budget 2018
Last Updated : Jan 09, 2018 08:31 AM IST | Source: CNBC-TV18

Expect additional Rs 13,000 crore for affordable housing schemes this year: MoHUA Secy

In CNBC-TV18’s Budget Corner, Durga Shanker Mishra, Secretary of Ministry of Housing and Urban Affairs (MoHUA) and Sriram Kalyanaraman, MD & CEO of National Housing Bank discussed what affordable housing wants from Budget 2018.

CNBC TV18 @moneycontrolcom

In CNBC-TV18’s Budget Corner, Durga Shanker Mishra, Secretary of Ministry of Housing and Urban Affairs (MoHUA) and Sriram Kalyanaraman, MD & CEO of National Housing Bank discussed what affordable housing wants from Budget 2018.

Under the Prime Minister Awas Yojana (PMAY), we run four verticals. First is beneficiary led constructions, second is affordable housing under partnership, third is slum redevelopment and fourth is credit-linked subsidy scheme (CLSS). Out of these, the beneficiary-led construction is the most popular one, said Durga Shanker Mishra.

Have sanctioned nearly 37.5 lakh houses under beneficiary-led construction scheme and have built 82,000 houses under CLSS this year, he further mentioned.

He expects additional Rs 13,000 crore for affordable housing schemes this year, he said.

CLSS has touched Rs 1,639 crore for 80,880 houses and these are houses funded by the banks and financial institutions where the individual is constructing it or buying a flat, said Kalyanaraman.

Most of the reports indicate 40-45 percent of new supply is in affordable housing segment because the private players have jumped in to the affordable housing segment, he added.

Below is the verbatim transcript of Durga Shanker Mishra’s interview.

Latha: This year as of now, how many units have been funded under the CLSS scheme and how much is the money that the government has disbursed?

A: Under the PMAY, we run four verticals. The first is beneficiary led constructions where the beneficiary at their own place, where they have got inadequate place to occupy or maybe the houses are kutcha, so that needs to be constructed and made a pucca house with the toilet and a kitchen facility around 25-35 square meter.

The second is affordable housing in partnership (AHP) with the public or the private. So that is another scheme where we provide Rs 1.5 lakh per unit. The third scheme is slum redevelopment where there is slum that can be redeveloped and the land can be monetised, again we pay Rs 1.5 lakh per dwelling unit. The forth scheme is CLSS. Out of these four schemes, the most popular is the beneficiary-led construction which constitutes nearly 57 percent. So far we have already sanctioned over 37 lakh houses, it is nearly 37.5 lakh houses we have sanctioned.

In the last month, when I held the meeting in December end, I sanctioned 5.45 lakh on one day. So this is going very well.

The second popular scheme is AHP, which constitutes around 35-37 percent. So there again, the numbers are going very well.

Slum redevelopment and CLSS, both these schemes have picked up quite well. Under the CLSS, in the last one year we have been able to do more than 83,000 houses so far and we are able to disburse over Rs 1,600 crore.

There is absolutely no problem with the Budget, we have been able to get more Budget and we are going to release funds so that is not going to be the problem, we are also in the process of creating one national, urban, housing fund so that the fund flow is maintained.

This is a commitment of honourable Prime Minister (PM) to provide housing for all by 2022 when we have our 75th anniversary of Indian independence and we are creating that ecosystem. I find that so much of enthusiasm amongst the states, all the states are coming up and they are bringing so many cases. They also have their own subsidy scheme varying from Rs 50,000 to as much as Rs 6,00,000 per dwelling unit.

Latha: Under the CLSS scheme which we were discussing with Kalyanaraman and earlier with Sudhin Choksey, MD of Gruh Finance, the allocation was Rs 1,000 crore. how much can it be increased in the current year itself and how much will you ask for given the incredible demand for it from industry, how much can it be possibly increased in the next year?

A: CLSS is not an independent scheme. This is part of the PMAY. You will be happy to know that under CLSS, we made certain changes, for example MIG.

Latha: That is very extremely well known here and people are kicked with that increase in carpet area. It is very popular and housing finance gentleman we spoke with said that there is a lot of demand for it but that was sanctioned only Rs 1,000 crore in terms of budgetary allocation. So will that be raised because there seems to be a lot of urban demand for it?

A: Last year our budget for CLSS was Rs 1,400 crore and we are getting additional funds. The parliament is under session and whatever demands are coming we are going to do that. The government has been very kind to extend this scheme. It was only till December 2017 and now this has been extended up to March 2019. This is seeing the kind of enthusiasm and the demand coming from different parts of the country, this has been extended and we will provide all the necessary funds.

Latha: How much more is the supplementary budget?

A: We are expecting around Rs 13,000 crore. That will cover all the different schemes, all four verticals, part of it will go to the CLSS as well.

For full interview, watch accompanying video...

India Union Budget 2018: What does Finance Minister Arun Jaitley have up his sleeve? Click here for live Budget 2018 news, views and analyses.
First Published on Jan 5, 2018 12:21 pm
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