Central Government employees have a low-interest house construction advance

Finance Minister Nirmala Sitharaman said the lowering of interest rates will encourage more government employees to buy new houses as they were “a major contributor” to the overall demand.

Also Read: 7th Pay Commission House Building Advance

New Measures to Boost Housing Sector

Relaxation of ECB guidelines for Affordable housing

• ECB guidelines will be relaxed to facilitate financing for home buyers who are eligible under the PMAY, in consultation with RBI.
• This is in addition to the existing norms for ECB for affordable housing.

House Building Advance

• The interest rate on House Building Advance shall be lowered and linked with the 10 Year G Sec Yields.
• Government servants contribute to a major component of demand for houses. This will encourage more government servants to buy new houses

Also Check: Clarifications regarding House Building Advance – HBA

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2,05,442 houses sanctioned under Pradhan Mantri Awas Yojana(Urban) in the 40th CSMC

Maharashtra gets 1,16,042 Houses, Karnataka-  31,657, Bihar-26,880, Tamil Nadu – 15,529 and Jammu & Kashmir – 15,334

28 NOV 2018

The cumulative number of houses sanctioned under PMAY(U) now is 65,04,037. The Ministry of Housing & Urban Affairs has approved the construction of another 2,05,442 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban). The approval was given in the 40th meeting of the Central Sanctioning and Monitoring Committee held here today.

Maharashtra has been sanctioned 1,16,042 houses while the sanction for Karnataka is 31,657 affordable houses.  The number of houses sanctioned for Bihar is 26,880, while Tamil Nadu has been sanctioned 15,529 houses and Jammu & Kashmir 15,334 houses.

A total of 392 projects with a project cost of Rs 7,391 crore with central assistance of Rs 3,082 crore has been approved in the meeting held under the Chairmanship of Sh Durga Shankar Mishra, Secretary, Ministry of Housing and Urban Affairs.

The approvals under the Beneficiary led construction(BLC) vertical is 85,227 while it is 1,20,215 under Affordable Housing in Partnership (AHP)vertical.

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Ministry of Housing & Urban Affairs

36th Central Sanctioning and Monitoring Committee (CSMC) Meeting of Pradhan Mantri Awas Yojana – Urban Sanctions a Total of 2,67,546 Houses from 10 States

Madhya Pradesh gets 59,421 Houses, Gujarat-55,296, Maharashtra-52,935, Uttar Pradesh – 36,370, West Bengal – 26,604, Bihar – 15,924

Ministry of Housing & Urban Affairs has approved the construction of 2,67,546 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban). The approval was given in the 36thmeeting of the Central Sanctioning and Monitoring Committee in its meeting held here today.

Madhya Pradesh has been sanctioned 59,421 houses while the sanction for Gujaratis 55,296 affordable houses.  The number of houses sanctioned for Maharashtra is 52,935, Uttar Pradesh 36,370 houses, West Bengal 26,604 houses and Bihar 15,924 houses.  Approvals given for Rajasthan stands at 8,600 houses while Chhattisgarh has been sanctioned 7,961 houses.  Punjab has been sanctioned 2,442 houses while the sanction for Uttarakhand is 1,993 houses.

With the above proposed houses, cumulative houses under PMAY(U) after subsuming projects of RAY scheme the total number of houses being funded under PMAY(Urban) would be 53,74,306 houses.

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Subsidy of up to Rs.2.60 lakh now available till March, 2019

Centre to look in to concerns of real estate industry to meet affordable housing targets

The central government today announced that the benefit of interest subsidy of about Rs.2.60 lakh on home loans under Pradhan Mantri Awas Yojana (Urban) will now be available for beneficiaries belonging to Middle Income Groups (MIG) fir fifteen more months beyond December this year.

This was announced by Shri Durga Shanker Mishra, Secretary (Housing & Urban Affairs), Government of India, while addressing the ‘Real Estate and Infrastructure Investors Summit’ organized by NAREDCO, in Mumbai today. He said that the government decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY(Urban).

Prime Minister Shri Narendra Modi, in his announcement on the 31st of December last year made applicable the Credit Linked Subsidy Scheme (CLSS) under PMAY(Urban) to MIG, till the end of December this year. Under CLSS, MIG beneficiaries with annual income of above Rs.6.00 lakhs and up to Rs.12.00 lakhs would get an interest subsidy of 4.00% on a 20 year loan component of Rs.9.00 lakhs. Those with annual exceeding Rs.12.00 lakhs and up to Rs.18.00 lakhs would get interest subsidy of 3.00%.

Reiterating the Government’s commitment to meet the Housing for All targets in urban areas by 2022, Shri Mishra urged private investors to invest in affordable housing, being promoted by the Government in a big way with several incentives and concessions.

Shri Mishra later an hour long discussions with a 30 member delegation of NAREDCO and assured them that the Government would look into various issues raised by them in all sincerity and possible interventions would be considered.

The delegation referred to what they called anomalies in GST rates for completed and under construction housing projects, Stamp Duties being higher and kept outside the purview of GST, scarcity of land, delays in granting construction permits, lack of coordination among different municipal agencies, RBI’s high risk weightage for lending to real estate sector despite Real Estate Act coming into force, inadequate bank financing despite Non-Performing Assets in respect of construction being much less than other sectors etc.

The delegation expressed concern over GST and other taxes accounting for over one third of the cost of residential properties.

Minister of Housing & Urban Affairs Shri Hardeep Singh Puri, who addressed the summit yesterday suggested to NAREDCO to have a detailed discussion with Secretary(HUA) for resolving the issues so that affordable housing could be given a boost.

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Hon’ble Prime Minister Shri Narendra Modi launched the Pradhan Mantri Awaas Yojana (Gramin) or PMAY-G on 20th November, 2016 from Agra in Uttar Pradesh. Using a variety of designs vetted by technical institutions, local materials and trained masons, carefully selected beneficiaries, who were homeless or living in 0,1,2, kuchcha room with kuchcha roof and kutcha walls, are building the finest quality homes with the enhanced unit cost of nearly Rs. 1.5 lakh through convergence.

In partnership with the State Governments, the challenge of completing 51 lakh Pradhan Mantri Awaas Yojana (Gramin) homes by March, 2018 is appearing possible. Already over 33 lakh houses are at different levels of construction and the remaining 18 lakh are also in the process of starting work after due approvals. On an average, a house is taking 4 to 8 months after actual physical start of work compared to 1 to 3 years in the past. There are negligible inclusion errors of ineligible beneficiaries under Pradhan Mantri Awaas Yojana (Gramin) due to three stage selection filters- use of SECC 2011 data, validation by Gram Sabha, and Geo-tagging with photos of existing house of the beneficiary using space technology. All payments are IT/DBT enabled and the beneficiaries receive it through their Bank account. This has not only brought down corruption, but also has improved the quality of houses constructed.

So far, nearly 55,000 houses are already completed and approximately 10 lakhs are at the advanced stages of completion. States like Madhya Pradesh, Chhattisgarh, West Bengal, Rajasthan, Maharashtra, Odisha and Jharkhand have done very well. Bihar, Uttar Pradesh, Gujarat, Tamil Nadu and Assam have been requested to further speed up the pace of construction. These are the major States that account for 85% of the need based construction of houses for deprived households.

Awaasoft MIS is managing PMAY-G completely, end to end, including fund transfer and geo-tagging of houses at every stage of construction. The Rural Mason Training programme has moved forward effectively in Maharashtra, Uttrakhand, Chhattisgarh, Jharkhand and Madhya Pradesh. Other States are also speeding up the Rural Mason Training Programme. Use of treated bamboos, fly ash bricks etc. has been taken up in many States. Beautiful homes constructed under Pradhan Mantri Awaas Yojana (Gramin) are transforming social relations of poor households in rural India. It is empowering the poor households and bridging social and economic inequality besides improving the well being of the poor. It is also generating employment on an unprecedented scale. Besides toilets and 90/95 days of wage labour under MGNREGS, provision for LPG gas connection under Pradhan Mantri Ujjwala Yojana and electricity connection under Deen Dayal Upadhaya Gramin Jyoti Yojana are also being enabled. Besides this, the provision for piped drinking water, use of solar energy in remote areas etc. are also being taken up. The Ministry hopes to complete 51 lakh houses under Pradhan Mantri Awaas Yojana (Gramin) in 2017-18 and almost an equal number in 2018-19.

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The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved a new scheme for promotion of Rural Housing in the country. The Government would provide interest subsidy under the scheme. Interest subsidy would be available to every rural household who is not covered under the Pradhan Mantri Aawas Yojana (Grameen), PMAY(G).

The scheme would enable people in rural areas to construct new houses or add to their existing pucca houses to improve their dwelling units. The beneficiary who takes a loan under the scheme would be provided interest subsidy for loan amount upto Rs. 2 Lakhs.

National Housing Bank would implement the scheme. The Government would provide net present value of the interest subsidy of 3 percent to the National Housing Bank upfront which will, in turn, pass it to the Primary Lending Institutions (Scheduled Commercial Banks, NBFCs etc.). As a result the equated monthly installment (EMI) for the beneficiary would be reduced.

Under the scheme, the Government would also take necessary steps for proper convergence with PMAY-G including technical support to beneficiary through existing arrangements. The new scheme is expected to improve housing stock in the rural areas, as well as create employment opportunities in rural housing sector.

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