CCEA approves 'Housing for all by 2022' scheme

A central grant of Rs 1 lakh per house, on an average, would be available under the slum rehabilitation programme

The Cabinet on Wednesday cleared Housing for All by 2022 — a scheme with an interest subvention of 6.5 per cent on housing loans to the economically weaker section (EWS).

The Cabinet accepted the recommendations of an inter-ministerial committee to increase the interest subvention from five per cent on housing loans to EWS, including slum-dwellers and low-income groups (LIGs).

Earlier under the Rajiv Rinn Yojana (RRY), urban poor with an annual income of up to Rs 1 lakh was defined as EWS and those earning between Rs 1 lakh and Rs 2 lakh as LIG. The income ceilings have been increased now to Rs 3 lakh for EWS and Rs 3 lakh to Rs 6 lakh as LIG, which will bring more people under the ambit.

“Under the credit-linked interest subsidy component, interest subsidy of 6.5 per cent on housing loans availed up to a tenure of 15 years will be provided to economic weaker sections/lower income group (EWS/LIG) categories, wherein the subsidy pay-out on net present value (NPV) basis would be about Rs 2.3 lakh per house for both categories,” said an official statement.

A central assistance at the rate of Rs 1.5 lakh a house for the EWS category would be provided under the affordable housing in partnership and beneficiary-led individual house construction or enhancement. About 20 million new houses would be set up in seven years to meet the shortage.

The Cabinet had earlier approved broader structure of the Housing for All mission. Under the redevelopment plan of slums with the participation of private developers using land as a resource component, a central grant of Rs 1 lakh on an average per beneficiary would be provided. States/Union territories are at liberty to use this grant for any slum redevelopment schemes to be taken up to make such projects viable, if required.

In the second category, affordable housing through credit-linked subsidy scheme, an interest subsidy of 6.50 per cent on each housing loan to EWS and LIG beneficiaries would be provided by the central government.

Thirdly, for affordable housing in partnership with private and public sectors, central assistance of Rs 1.50 lakh to each beneficiary would be provided to promote housing stock for urban poor with the involvement of private and public sectors, provided 35 per cent of dwelling units of the projects proposed are earmarked for EWS category.

And lastly, subsidy for individual beneficiary-led construction or enhancement of houses, a central assistance of Rs 1.50 lakh would be provided to each eligible urban poor beneficiary to enable him build his own house or undertake improvements to existing houses.

Also, interest subsidy under affordable housing through credit linked subsidy component of the Urban Housing Mission would be increased by Rs 50,000 to Rs 1,10,000 for each beneficiary. The Urban Housing Mission would be taken up in 4,041 cities and towns. Initially, the focus would be on 500 cities and towns with a population of 100,000 and above, as these account for about 75 per cent of the urban population.

Hundred of such cities would be included in Phase-1 till March 2017 and 200 cities in Phase-2 from April 2017-March 2019. The remaining would be covered during 2019-22, the statement added.

The registration of houses built under the mission would either be in the name of women or jointly in the name of wife and husband. States/UTs are also being asked to amend rental laws and also for putting in place a mechanism for time-bound clearances for layout approvals and building plans by the urban local bodies.