The Indian Wire » News » Government plans 1.12 lakh more affordable houses under PMAY scheme

Government plans 1.12 lakh more affordable houses under PMAY scheme

The Center approved an additional 1.12 lakh affordable houses under the Pradan Mantri Awas Yojna (PMAY) for the urban poor in 8 states, Ministry officials notified on Friday. So far 55 lakh houses have been funded by PMAY (Urban).

‘The Ministry of Housing and Urban Affairs has approved the construction of 1,12,213 more affordable houses for the benefit of urban poor under Pradhan Mantri Awas Yojana (Urban),’ according to the statement issued by the Ministry.

These include Andra Pradesh (37,719), Haryana (19,858), Madhya Pradesh (18,375), Maharashtra (12,238), Chattisgarh (10,632), Karnataka (8,761), Jammu & Kashmir (4,442) and Arunachal Pradesh (188).

The Center will fund ₹1,683.18 cr for these projects.

Central Sanctioning and Monitoring Committee (CSMC) of the PMAY sanctioned it on Thursday. The committee also sanctioned 2.67 lakh affordable houses for the poor in 10 states last month.

Pradan Mantri Awas Yojna

PMAY was launched on June 25, 2015 to meet the target ‘housing for all’ by 2022. Under this scheme the government has increased the carpet area of eligible houses at subsidized interests under the Credit Linked Subsidy Scheme (CLSS) for the middle income group (MIG).

There are 2 categories- MIG-I (₹6,00,001-12,00,000 per annum) and MIG II (₹ 12,00,001-18,00,000 per annum). In MIG-I, the interest subsidy is 4% for a loan amount up to ₹9 lakh and in MIG-II, the interest subsidy is 3% for a loan amount up to ₹12 lakh.

The Ministry plans to introduce lock-in period of 5 years for sale of houses under PMAY. As per reports, the houses are purchased at subsidized rates and are later sold at higher rates.

‘We got reports that many people are taking undue advantage of this scheme. Beneficiaries of the scheme are entitled to subsidy in the form of loan at cheaper rates for buying properties. Some people opt for this scheme, and after getting possession they sell these homes at higher rates,’ a senior government official said.

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