PMO discusses ways to involve realty companies in PM housing scheme

Pic for representational purpose

New Delhi: Ways to involve private real estate developers in the government's ambitious 'Housing-for- all by 2022' programme was on Saturday discussed at a meeting in the Prime Minister's Office with focus on removing the "bottlenecks".

The meeting called by the Prime Minister's Principal Secretary Nripendra Misra discussed how the benefits of the interest subsidy on affordable housing could reach the prospective home buyers at the earliest, sources said.

The deliberations centred around undertaking the projects in the PPP mode to boost the supply of low-cost houses, they added.

The two-hour-long meeting came amid the thrust given by the government to the implementation of the Prime Minister's Awaas Yojana (PMAY), as part of Narendra Modi's ambition of providing housing for all by 2022, when the country celebrates its 75 years of independence.

The real estate developers were represented by two apex bodies CREDAI and NAREDCO. Tata Housing officials also attended the meeting.

The real estate sector representatives flagged difficulties they face in launching projects in smaller cities because of the specifications under PMAY scheme and wanted some relaxation on that front, the sources said.

About two months back, Minister for Urban Development and Housing and Urban Poverty Alleviation M Venkaiah Naidu had said he was "disappointed" that not a single proposal had come from the private builders for the affordable housing projects.

He had said that reasons for this needed to be found out.

The government, in a bid to give a boost to the real estate sector, had accorded infrastructure status to the affordable housing segment in this year's budget.

On December 31, Prime Minister Narendra Modi had announced interest subsidy of up to 4 per cent on loans taken in the new year under the Pradhan Mantri Awaas Yojana.

Modi, in his national address on New Year's eve, had also said 33 per cent more homes will be built for the poor under this scheme in rural areas.

Besides, in urban areas housing loans of up to Rs 9 lakh and up to Rs 12 lakh will receive interest subsidy of 4 per cent and 3 per cent respectively, while in rural areas loans up to Rs 2 lakh will get an interest subvention of 3 per cent.

"Even so many years after independence, millions of poor do not have their own home. When black money increased in our economy, houses became out of reach of even the middle class. The government has taken some major decisions to ensure homes for the poor, the neo middle class and the middle class," Modi had said.