25,000 Crore Extra Budgetary Resources For Implementation Of PMAY: MoHUA
Ministry of Housing & Urban Affairs informed that Rs. 41,765 crores have been allocated to the Ministry during 2018-19 as against Rs. 40,617 crores during 2017-18 which translates into an increase of nearly 3% in gross Budgetary support. The outlay for PMAY (Urban) has been increased by Rs. 25,000 crore in extra budgetary resources for the implementation of PMAY in the financial year 2018-2019. It will be raised outside general budget.
Budgetary resources support is Rs.6500 crore which translates into an effective enhancement of 520% over previous year. The coverage in PMAY(U) is in 4,320 cities which includes 472 Class – 1 cities. Around 37.45 lakh dwelling units in 7,474 projects with an investment of Rs. 2,03,752 crore involving Central assistance of Rs. 57,681 Crore have been accepted under PMAY in the last 31 months. Out of this, 19.49 lakh houses have been grounded and 3,19,648 houses have already been completed. A total of 2,78,267 houses have been occupied.
The quantum of funds required to adequately meet the low cost housing has gathered momentum with the above progress and increased scope of PMAY(Urban). The announcement of a dedicated “Affordable Housing Fund” will go a long way in meeting this requirement. NHB will be working out the modalities for quick operationalization of the Fund.
While some of the Recent Initiatives include:
- Credit Linked Subsidy Scheme (CLSS) for EWS/LIG has been expanded to include the Middle-Income Group (MIG) w.e.f 01.01.2017 covering two income categories between Rs. 6 lakh and Rs 12 lakh (MIG-I) and between Rs. 12 lakh and Rs. 18 lakh (MIG-II) household income. For MIG-I, an interest subsidy of 4% for loan amounts up to Rs 9 lakh and for MIG-II, an interest subsidy of 3% for loan amounts up to Rs. 12 lakh is available to eligible persons/households.
- In another major initiative, the Central Government has also increased the carpet area of 90 square metre to “up to 120 square metre” in respect of MIG I and, in respect of MIG II from 110 square metre to “up to 150 square metre”.
- Central Government has also recently increased the coverage under PMAY (Urban) to include areas falling within notified Planning/Development area under the jurisdiction of an Industrial Development Authority/Special Area Development Authority / Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations.
- GST council had recently announced a lowering of GST rate from 12% to 8% (after deducting one third of the amount charged for the house towards cost of land) for the houses constructed or acquired under the CLSS vertical of PMAY-Urban covering EWS, LIG, MIG I and MIG II and has been in effect from January 25, 2018. This concessional rate is already applicable to the other three verticals of PMAY (Urban) viz. In Situ Slum Rehabilitation, Affordable Housing in Partnership and Beneficiary Led Construction.
The recently revised FDI Circular (Jan 10, 2018) permits FDI to Real Estate Brokering Service. This would further professionalise the Real estate sector with more organised corporate entities getting into the sector.
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