In order to give momentum to affordable housing projects, the Modi government has identified land available with six loss-making central public sector enterprises, which it plans to use to build 'houses for all' under the Pradhan Mantri Away Yojana (Urban). The six companies, including IDPL, HMT, Hindustan Antibiotics and Tungabhadra Steel Products, have about 3,000 acres. According to a senior government official, some of the projects would be completed before 2022.
Under PMAY (U), people can avail benefits under various components to buy a house in urban areas.
"We have put all such proposals on a fast track. The land available with sick CPSEs is in prime areas. In some cases, we will allow mixed use," the official told Economic Times.
"We expect more such projects in the near future as the government has decided to exit loss-making entities," said an executive with NBCC. NBCC has been appointed as the land management agency to auction the real estate assets of loss-making companies and will get 0.5% of the value realised from such sales as fee, subject to a cap of Rs 10 million. The agency will determine the current land use and its suitability for industrial, manufacturing or other purpose, according to the guidelines.
Budget 2018 for Housing for All scheme
Housing for All by 2022 was a major poll promise of the BJP in the run-up to 2014 parliamentary election. However, states such as Kerala, Uttar Pradesh, Uttarakhand and Delhi have not been able to get many proposals sanctioned. Sources said this year’s budget allocation might see a jump of nearly 50 per cent as Prime Minister Narendra Modi’s dream scheme is moving at a slow pace and more funding will help it achieve targets.
The budget announcements are going to be crucial, considering the government has only one year left before the 2019 elections.
Pradhan Mantri Awas Yojna target
The target of PMAY (Rural) is to complete 10 million new houses by March 31, 2019. Of these, 5.1 million units have to be completed by March 31, 2018. The government has a similar target for PMAY (Urban). The scheme targets mostly the poor section of the society which forms a larger chunk of the vote bank in the country. In the Budget 2017-18, the scheme was allocated Rs 62 billion.