If you are in middle income group and planning to buy house under Pradhan Mantri Awas Yojana (PMAY) Urban, there is good news for you. The Union Cabinet on Thursday approved an increase in the carpet area of Credit-linked Subsidy Scheme (ClSS) for Middle Income Group (MIG) under the yojana.
Now under MIG-I category, the carpet area has been increased from 90 square metres to 120 square metres. In the MIG-II, it is has been raised from 110 square metres to 150 square metres.
The Government expects the increase in carpet area to enable the middle income category of individuals to have a wider choice in developers’ projects. “The increased carpet area will also give a boost to the sale of ready built flats in the affordable housing segment. Homebuyers will have a wider choice to developers prices,” said officials of Ministry of Housing and Urban Affairs (MoHUA). The Government is worried a lot as neither middle income group people nor private operators have shown interest in the PMAY (urban).
Under the MIG-I category, a four-per cent interest subsidy is provided to the beneficiaries, whose annual income is between Rs 6 lakh and Rs 12 lakh, on a loan of up to Rs 9 lakh. Similarly, under the MIG-II category, the beneficiaries with an annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of three per cent on a loan of up to Rs 12 lakh.
“The limit of 120 sqm and 150 sqm is seen as a reasonable enhancement and would cater to the market generally scouted by the MIG belonging to the two income categories specified in the scheme. The increase in carpet area will enable the Ml category of individuals to have a wider choice in Developers’ projects,” officials said.
Meanwhile, Realtors’ body the Confederation of Real Estate Developers’ Associations of India (CREDAI) is the apex body of private Real Estate developers representing 11,940 members spread across 23 States and the National Real Estate Development Council (NAREDCO) have hailed the Government’s decision, saying the move would help middle income buyers and help the sector in clearing unsold homes.
Under the Prime Minister Awas Yojna (Urban) the Ministry has so far approved construction of 28,57,321 affordable homes for Economically Weaker Sections (EWS), low and Middle Income Groups with an investment of Rs.1,54,180 crore, Central assistance of Rs.44,278 crore has been approved for these houses. The Centre has recently brought a policy involving the new Public Private Partnership (PPP) policy for affordable housing in India is drafted to minimise risks like land, financing and capital investments, maintenance and recovery of the capital invested.
Prime Minister Narendra Modi in his new-year eve speech on December 31 last year had announced the ClSS under the PMAY (Urban) for people belonging to the MIG category, valid till the end of December this year. However, the government last month extended the validity of interest subsidy benefit by 15 more months till March 2019.