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Last Updated : Jun 25, 2015 10:19 PM IST | Source: Moneycontrol.com

PM launches housing, smart city, urban renewal schemes

Prime Minister Narendra Modi today launched the NDA government's flagship Pradhan Mantri Awas Yojana (PMAY) housing scheme, along with its long-planned Smart Cities mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) urban renewal initiative.


Moneycontrol Bureau


Prime Minister Narendra Modi today launched the NDA government's flagship Pradhan Mantri Awas Yojana (PMAY) housing scheme, along with its long-planned Smart Cities mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) urban renewal initiative.


As part of the three missions, the government will look to create 2 crore houses by 2022 by providing a central grant of Rs 1 lakh to Rs 2.3 lakh per house by way of a 6.5 percent interest subvention scheme; look to create 100 smart cities through a Rs 48,000 crore initiative; and push for urban infrastructure upgrade for 500 cities in a Rs 50,000 crore scheme.

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The prime minister launched the scheme in the presence of municipal commissioners, mayors and state-government ministers and officials from across India.


"The housing for all scheme will ensure every urban poor is enabled to own a house. AMRUT will ensure basic infrastructure and sanitation is in place in cities. For smart cities, we will follow a bottom-up approach where the onus will be on local bodies rather than states or the Centre to develop them," he said.


The NDA projects on housing and urban renewal will replace similar initiatives by the UPA government such as the Rajiv Awas Yojana and the Jawaharlal Nehru National Urban Renewal Mission. Both will be funded through the public-private-partnership (PPP) mode.


At the launch event, Modi spent considerable time exhorting local body officers to think of innovative ways in order to push the programmes and said that while the central government will provide hand-holding and funding, much would depend on them for execution.


"The housing for all scheme is a great development," Repco Home Finance MD R Vaardarajan told CNBC-TV18. "Previously, there was a 1 percent interest rate subsidy scheme [under the Rajiv Gandhi Awas Yojana]. But a 6.5 percent rate scheme will push housing in a major way."


"The most important thing is the Indian government under the new Prime Minister has acknowledged that urbanisation is a necessity and that we should have paid attention to this 25-30 years ago. Had we done that, we would have had cities at par with the cities of the world today," HCC chief Ajit Gulabchand told CNBC-TV18.


"Having now acknowledged that urbanisation is important to create new jobs, to create the things which we have to do, I think this mission is aimed at now catching up with lost time," he added.


Shares of home finance companies were buzzing in trade today after the event launch.

"While we don't track these companies, stocks such as Repco and LIC Housing Finance have evinced a lot of institutional investor interest [on hopes they will benefit from the housing for all scheme]," Rahul Arora, CEO - Institutional Equities, Nirmal Bang, said.



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First Published on Jun 25, 2015 11:42 am
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