Macro@Moneycontrol: Widening scope of PMAY and its impact on housing segment

Gaurav Choudhury Moneycontrol News

The government has approved a 33-percent increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme Pradhan Mantri Awas Yojana-Urban (PMAY-U) to attract more beneficiaries.

The carpet area of a house has been enhanced to 160 sq m from 120 sq m for Middle Income Group-I (MIG-I), while it has been increased to 200 sq m from 150 sq m in case of MIG –II.

The new rules will be effective from January 1, 2017, the date on which the scheme became operational, the ministry said in a release.

Under the Credit Linked Subsidy Scheme (CLSS), each beneficiary can avail subsidy up to Rs 2.35 lakh on purchase of a house under the scheme.