Modi's Housing for All Scheme needs Rs.1 lakh crore
Sources said the housing ministry would require around Rs. 1 lakh crore over the next two-three years to meet the targets set under the PM Awas Yojana or Housing for All scheme. The ministry was earlier considering setting up a special purpose vehicle (SPV) to raise a loan. However, it has now zeroed in on public sector undertaking HUDCO for the loan.
A source revealed to the Times of India that HUDCO, which comes under the housing and urban affairs ministry, "has enough capability to raise [a] loan." "This debt can be repaid with interest to the investors from subsequent budgetary allocation," the source added.
The housing ministry has disbursed around Rs. 11,000 crore to construct 27 lakh houses approved since 2015-16. For the ongoing financial year, the target is 16-17 lakh houses. Overall, the Union Cabinet cleared a proposal to build two crore houses by 2022 but this was lowered to 1.2 crore houses.
Under the scheme, the housing ministry provides financial assistance worth Rs. 1.5 lakh. If a beneficiary is going ahead with in-situ housing development, i.e. redeveloping slums, he gets Rs. 1 lakh financial help. Middle-income groups can avail a Rs. 2.5-2.7 lakh interest subsidiary.