Modi's Housing for All Scheme needs Rs.1 lakh crore
What's the story
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.
Information
HUDCO capable of raising loan for scheme
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.
Details
Govt. must build 1.2 crore houses over 5 years
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.
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What the scheme entails
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.