In a recently released document by the National Institution for Transforming India (NITI) Aayog, the committee suggested that to boost the affordable housing sector, the central government should add a sub-category under Priority Sector Lending (PSL).
The Document- Strategy for New India @ 75 said, “To ensure greater access for the poor to institutional finance, the Department of Financial Services should consider a subcategory under priority sector lending (PSL) for affordable houses,”
The Aayog further recommended that the govt should also relax norms for loans given to realtors who are developing houses under PMAY. These norms include rising of the construction cost of 10 lakh per home, increase in threshold for maintenance of the house in centres other than the metropolitan cities etc.
“To ensure that there is enough land to take up affordable housing projects, land lying idle with public sector undertakings should be provided to developers for taking up such projects.” NITI Aayog added in the report.
To reduce the cost of PMAY homes, government projects should focus on the life cycle cost (LCC) approach to the construction of houses rather than the cost per square foot approach. This will not only add quality to construction but will also reduce expenditure incurred on the maintenance of houses, report said.
In 2015, the Prime Minister has launched ‘Housing for all Scheme-2022’ with an initiative to provide homes to rural and urban poor’s across the country. Also known as PMAY, under this scheme, the beneficiaries belonging to Economical Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group (MIG) were offered an interest subsidy on purchase/ construction/ extension/ improvement of house.
As per the latest government data, a total 65, 43,970 houses have been approved under PMAY (U) across the country till December 3.