Ministry pulls us Housing bodies and banks to push the flagship affordable home scheme

Published: 13th July 2017 10:06 PM  |   Last Updated: 13th July 2017 10:06 PM   |  A+A-

Express News Service

NEW DELHI:  A day after the PM asking the officials to speed up the construction of affordable houses in the country, ministry of Housing and Urban Affairs on Thursday asked the National Housing Bank (NHB), HUDCO and Public  Sector Banks to more pro-actively promote Credit Linked Subsidy Component of Pradhan Mantri Awas Yojana(Urban) so as to meet the target of Housing For All by 2022.

Secretary (Housing and Urban Affairs) Durga Shanker Mishra on Thursday reviewed the progress of affordable housing under CLSS and directed NHB and HUDCO, the two Central Nodal Agencies to prepare action plans to ensure that at least one fourth of the mission target is met under CLSS component of PMAY (Urban). He also directed that at least two lakh MIG beneficiaries be identified by December this year.

During the review, it was informed that out of the total 21 lakh affordable houses sanctioned underPMAY (Urban) so far, 43,166 EWS and LIG beneficiaries have been disbursed interest subsidy of Rs.824 crore. Under CLSS, which was made applicable to MIG sections from January 1st this year, 250 beneficiaries were given interest subsidy of over Rs.5 cr. As per the announcement of Prime Minister on December 31, 2016, CLSS for MIG ends by December this year.

Mishra asked the officials of Department of Financial Services who attended the review to direct public sector banks to aggressively promote CLSS component given its potential to benefit a large number of people. He also suggested that RBI may be requested to earmark specific share of Priority Sector Lending for Affordable Housing. As per the norms, PSBs have to ensure 40% of total lending to priority sector.

Of the total beneficiaries under CLSS, 75% were serviced by Housing Finance Companies while public sector banks could reach out to only 12%.

Under CLSS, EWS and LIG beneficiaries are extended Interest Subsidy of 6.50%, 4% for MIG with annual income of Rs 6 lakh to Rs 12 lakh on a 20 year loan of Rs 9 lakh and 3% Interest subsidy for MIG with an annual income of Rs 12-18 lakhs on a loan of Rs 12 lakhs. 

Pradhan Mantri Awas Yojana was launched by PM Narendra Modi in June 2015 and the government aims to construct affordable housing for all by constructing 20 million houses between by 2022. 

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