700% increase in Budget for Rajiv Awas Yojana

An increase of 700 per cent from last the financial year was announced in the Budget allocation for Housing and Urban Poverty Alleviation Ministry's 'Rajiv Awas Yojana', which aims at making India slum free in the next few years.

"Rajiv Awas Yojana (RAY) for slum dwellers and urban poor was announced last year to extend support to states that are willing to provide property rights to slum dwellers. I propose to allocate Rs 1,270 crore for 2010-11 as compared to Rs 150 crore last year," Finance Minister Pranab Mukherjee said in his Budget speech today in Parliament.

The government has also increased allocation for "Swarna Jayanti Shahari Rozgar Yojana (SJSRY)", designed to provide employment opportunities in urban areas.

SJSRY has been strengthened with focus on community participation, skill development and self employment support structures.

"For the year 2010-11, I propose to increase the allocation for urban development by more than 75 per cent from Rs 3,060 crore to Rs 5,400 crore," Mukherjee said.

These announcements have been welcomed by HUPA Minister Kumari Selja, who had sought these enhancements in her favourite schemes.

The allocation for Housing and Urban Poverty Alleviation has also been raised from Rs 850 crore to Rs 1,000 crore in 2010-11.

The Finance Minister had last year announced a scheme of 1 per cent interest subvention on housing loans up to Rs 10 lakh where the cost of the house does not exceed Rs 20 lakh.

"I propose to extend this scheme up to March 31, 2011. Accordingly, I propose to provide a sum of Rs 700 crore for this scheme for the year 2010-11," Mukherjee said.

In another incentive, the government today announced a one time interim relief to the housing and real estate sector, impacted by the global recession.

"I propose to allow pending projects to be completed within a period of five years instead of four years for claiming a deduction on their profits. I also propose to relax the norms for built-up area of shops and other commercial establishments in housing projects to enable basic facilities for their residents," Mukherjee said.