Expanding The Purpose And Amount Of The Housing Subsidy Under The PM Awas Scheme: Report

CNBC-TV18 reported on April 24 that the Center is examining a proposal to expand the scope and magnitude of housing subsidies for the urban poor under the PM Awas Yojana (PMAY), citing individuals acquainted with the talks.

According to the source, the housing scheme’s increased scope is expected to include coverage for small merchants, shop owners, and independent contractors. It is anticipated that the subsidized loan offered under the expanded program would be matched in value to the cost and dimensions of the residential property. According to CNBC-TV18, a subsidized loan of up to Rs 30 lakh is being suggested to be granted for a residence that would cost the buyer Rs 35 lakh.

The Credit Linked Subsidy Scheme (CLSS), which provided subsidized house loans based on income, was terminated by the Center in 2021 as part of PMAY. Under the CLSS, 25 lakh dwellings were funded, and throughout a five-year period, subsidies of R 59,000 crore were granted.

The flagship housing initiative received an additional boost of Rs 80,671 crore from the interim Union Budget 2024–25, which was announced on February 1. The government would introduce a program to assist worthy segments of the middle class, “living in rented houses, slums, or chawls and unauthorized colonies,” in purchasing or building their own homes, according to Finance Minister Sitharaman’s remarks.

Launched in June 2015, the PMAY project seeks to provide all qualified urban recipients with pucca dwellings equipped with essential utilities. Now, the goal is to build an additional two crore homes in the next five years.

The minister of housing and urban affairs, Hardeep Singh Puri, had said in January that the cabinet would receive a proposal about interest subsidies for affordable urban homes.