Modi 3.0 plans to re-introduce an interest subsidy, increase carpet area and bring single middle class category under PMAY-U, Housing for All Mission
Modi government is likely to introduce changes in the criteria and classification of middle income groups for beneficiaries of the Pradhan Mantri Awas Yojana (Urban) or PMAY-U. The changes are likely to be tabled in the parliament when the Union budget is presented this month, Mint reported.
Under PMAY-U scheme, the Centre might re-introduce an interest subsidy for its urban housing scheme. It is also planning to increase the carpet area provided under the Credit Linked Subsidy Scheme (CLSS) for urban poor. CLSS was discontinued for this class at the end of financial year 2022.
The proposals will be in continuation of the plans introduced by FM Nirmala Sitharaman in the interim budget. She said in her February interim budget speech that the Centre plans to help deserving sections of the middle class to buy or build their own houses. The effort of the centre aims to improve housing conditions of those living in rented houses and unauthorized colonies. The government introduced interest subvention, which helps in providing loans at subsidised rates, for these classes.
The report said that the government is currently working on the exact percentage of interest subvention which will be offered.
As per the report, there are proposals to have a single category of middle-class as opposed to two. Currently, the beneficiaries of the PMAY-U for the middle income group must have a household income between Rs 6-18 lakh.
Under the urban housing scheme, those with household income between Rs 6-12 lakh fall in the middle-income group-I (MIG-I). They can buy or build a house with a carpet area of up to 90 sq.m . While those with Rs 12-18 fall in the category of MIG-II and can buy or build a property with a carpet area up to 110 sq.m
PMAY-U is a flagship programme implemented by Ministry of Housing and Urban affairs.