'Housing for all by 2022' scheme to be launched by June

The government is getting ready to launch PM Narendra Modi's most ambitious scheme: Housing for all by 2022. Modi is likely to launch the scheme as an umbrella mission, dovetailing all affordable housing schemes and slum redevelopment projects. 

The urban development and rural development ministries have finalised their respective components for providing 6 lakh houses - 2 lakh in urban areas and 4 lakh in rural areas. According to sources, the Prime Minister has to give time for the launch of the scheme, which is likely around mid-June. A source told ET, "The ministers have been busy with the 1st year anniversary programmes. 

After this we are only waiting for PM to give time for the final launch. It's a very big initiative so it would have a proper launch." The endeavour, which was earlier planned as Sardar Patel Mission, would now be named to commemorate 75 years of Independence. The new mission would include all the already existing schemes of Ministry of Housing and Urban Poverty Alleviation and rural development ministry. 

A senior official said, "Schemes like Rajiv Awas Yojana, Rajiv Rinn Yojana would all be included under this mission."

One of the main components of the mission would be slum redevelopment. Under this, land will be pooled and then given to a private real estate developer. Slum dwellers would be given flats free of cost in multi-storey towers by the developer. The government would allow the developer to generate revenue by developing a portion of land of commercial purposes.

A senior urban development ministry official said, "In case some projects are unviable, viability gap funding would be allowed." The government is also planning to increase the interest subsidy of 5% on loans granted to economically weaker sections (EWS) and lower income group (LIG) categories to construct their houses. 

Sources said that the subsidy would be increased and the amount of loan is likely to be increased from Rs 5 lakh to Rs 10 lakh under the new mission. Another major component is the upfront assistance given to individual beneficiaries for constructing or upgrading their tenements. 

This amount is also likely to be doubled under the new scheme. "The biggest challenge before the Modi government right now is that the funds would be provided by the Centre and the states would reap political benefits out of such a welfare oriented scheme," said a source. 

SOURCE: Magicbricks