NEW DELHI, June 13
The construction of 30 million houses in both rural and urban areas under the Pradhan Mantri Awas Yojana (PMAY) is likely to cost the Central exchequer about Rs 4 trillion, while the state governments will have to spend another Rs 2.5 trillion, according to official sources. “These are rough estimates, based on initial calculations,” a source said.
On Monday, the Union Cabinet approved the construction of 20 million more houses under PMAY-Gramin, and 10 million under PMAY-Urban. The details of the assistance and the timeline for the scheme’s implementation have not yet been made public.
As such, under the PMAY scheme, the cost of unit assistance is to be shared between the Central and state governments in the ratio 6:4 in plain areas, and 9:1 for North Eastern and hilly states. Shrimp exporters to report revenue growth of 8-10% this fiscal on demand recovery
FE had earlier reported that these houses will be built in the next five years. An official had earlier told FE that under the revamped PMAY-G, the cash support will likely be enhanced to around Rs 2.3-2.4 lakh/housing unit from Rs 1.2-1.3 lakh in the previous scheme, due to cost escalation.
For urban households, the Centre may unveil a new Rs 60,000 crore interest subsidy scheme for the urban poor and middle class for five years. It will offer interest subvention of 3-6% per annum on home loan amounts up to Rs 5 million. The extant scheme offered interest subvention for home loans up to Rs 18 lakh. To achieve the target of “Housing for All” in rural areas, the Centre rolled out PMAY-G on April 1, 2016 and sanctioned 29.5 million houses to states. The Centre has spent Rs 2.72 trillion since the scheme was rolled out.
Of the 11.86 million houses sanctioned under PMAY-U after the scheme was rolled out in June 2015, 11.41 million houses have been grounded and 8.2 million houses completed.
The Centre has spent Rs 1.63 trillion in the urban housing scheme since FY16.
