PM Modi gives a push to the urban poor housing plan

According to analysts, the move will help the poor in rural and semi-urban areas

The Prime Minister Narendra Modi in a major fillip to the government’s housing for all initiative, announced two schemes launched under Pradhan Mantri Awas Yojana (PMAY), which according to analysts help the poor in rural and semi-urban areas. 

According to the PM, subsidised loans would be made available for building or expanding homes in rural India. Also, those wanting to build or expand their homes will get loans of up to Rs 2 lakh, with a 3% interest relief.

Low-interest loans will be made available to the urban poor, he shared. Housing for the rural poor will be increased by 33%. “We are launching two housing schemes. In 2017, those who want to construct homes will get up to 4% interest subsidy for loan amounts up to Rs 9 lakh and 3% up to Rs 12 lakh," he said. 

Under PMAY, the government plans to cover around 2 million non-slum urban poor households. Hence, total housing shortage envisaged to be addressed through the new mission is 20 million, the government has said.

The mission is being implemented during 2015-2022 and provides central assistance to Urban Local Bodies (ULBs) and other implementing agencies through states and union territories.

Experts believe that post-demonetisation the affordable housing segment will get a much-needed boost. Confined to the fringe areas of metros, this segment is expected to get a boost as land prices will plummet in the next few years, especially in far-flung areas around Indian metros, and the Tier-II, III cities. 

“Affordable housing would get a major fillip which would be visible in rural and semi-urban areas. But the affect would not be much visible in cities as the land prices are higher. But this is a great move and in 2017 we will see a rise in affordable housing projects,” Anuj Puri, Chairman & Country Head, JLL India.