The housing ministry has extended coverage of interest subsidy under Pradhan Mantri Awas Yojna (PMAY), bringing a huge relief to the thousands of new home buyers. This relief will be provided to the properties falling under any part of a development authority and planning area, rural pockets within special economic zones (SEZs) and the industrial belts.
Launched in June 2015 by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), The Pradhan Mantri Awas Yojana Programme envisioned the provision of ‘Housing for All by 2022’. The government plans were to build affordable pucca houses with water facility, sanitation and electricity supply round-the-clock. The housing requirement of urban poor, including slum dwellers, is what the mission have aimed for.
The Pradhan Mantri Awas Yojana, working on its key features, aimed to build homes for slum dwellers in collaboration with private developers, hence transforming the slum areas. It also planned to give loans to mid-income and a credit-linked subsidy to weaker sections taken for new construction or renovation of existing homes.
According to the recently issued guidelines, the interest subsidy given to the home buyers will be around Rs 2.3 lacs. The ministry has been working on the proposal to increase the coverage. These changes have been made, due to the complaints from home buyers who had alleged that some of the banks were not approving loan applications under the interest subsidy scheme in certain areas in about 100 cities.
There are various areas that are being included for coverage under PMAY(U) by the amended guidelines, such as areas falling within notified planning or special area development authority or urban development authority or development area under the jurisdiction of an industrial development authority or any such body under state legislation that is entrusted with the functions of urban planning and regulations
Under the new notification, there will be a flexibility for beneficiaries in the permanent wait list of PMAY (G), for opting for a house under PMAY(G) or PMAY (U). There will be no denial of benefits of all existing and future rural schemes to a beneficiary who would avail a house under this amendment.