MoHUA Expects Rs 13,000 Crore For Affordable Housing From Budget 2018

Secretary of Ministry of Housing and Urban Affairs (MoHUA) and MD & CEO of National Housing Bank discussed what affordable housing wants from Budget 2018.

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MoHUA Expects Rs 13,000 Crore For Affordable Housing From Budget 2018

Secretary of Ministry of Housing and Urban Affairs (MoHUA) and MD & CEO of National Housing Bank discussed what affordable housing wants from Budget 2018.

Under the Prime Minister Awas Yojana (PMAY), there are 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.

Also Read: Tax Reforms Could Be Considered In Budget 2018, Homebuyers Expectations

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

Ministry have sanctioned nearly 37.5 lakh houses under beneficiary-led construction scheme and have built 82,000 houses under CLSS this year. It expects additional Rs 13,000 crore for affordable housing schemes this year.

Also Read: Afordable Housing In Vijayawada City Still A Distant Dream

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. 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.

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

Also Read: Residential Market To Remain Sluggish Till Second Half Of 2018

Last year the budget for CLSS was Rs 1,400 crore and Ministry is getting additional funds. The parliament is under session and whatever demands are coming they 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.

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.

Source Link- http://www.moneycontrol.com/

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