Housing for all by 2022, says Jaitley

The government is committed to provide housing for all by 2022, Finance Minister Arun Jaitley said Thursday while announcing a slew of measures to boost housing.

The government intends to extend additional tax incentive on home loans to encourage people, especially the young, to own houses, Jaitley said in his budget speech.

He said the government will raise the housing loan interest deduction limit from Rs.1.5 lakh to Rs.2 lakh to revive the housing sector.

"I propose the setting up of a mission on low cost affordable housing which will be anchored in the National Housing Bank (NHB). Schemes will be evolved to incentivise the development of low cost affordable housing," Jaitley said.

The minister said he proposed to allocate this year a sum of Rs.4,000 crore for the NHB with a view to increase the flow of cheaper credit for affordable housing to the urban poor, economically weaker sections and low income groups.

Jaitley said that to encourage development of smart cities, which will also provide habitation for the neo-middle class, requirement of built-up area and capital conditions for FDI was being reduced from 50,000 square metres to 20,000 square metres and from $10 million to $5 million respectively with a three-year post-completion lock-in period.

"The government is willing to examine other suggestions that would spur growth in this (housing) sector," he said.

Jaitley also said the government proposes to add slum development to the list of corporate social responsibility (CSR) activities.