Under the new revised norms, unit assistance for an IAY house will be enhanced from Rs 25,000 to Rs 35,000 in plain areas and from Rs 27,500 to Rs 38,500 in hilly/difficult areas, Parliamentary Affairs Minister P R Dasmunshi told newspersons. The unit assistance for upgradation will be raised from Rs 12,500 to Rs 15,000 across the country, he said. These new revised rates will be applicable to new IAY houses sanctioned after April 1, 2008. The Cabinet also decided to make a provision for additional outlay of Rs 350 crore for Rural Housing during 2008-09 to maintain physical targets at least at the level of the current year 2007-08.

Public sector banks will be advised to include IAY houses under the differential rate of interest (DRI) scheme for lending up to Rs 20,000 per unit at an interest rate of 4 per cent. The government also approved the launch of a Central scheme to give “instant” financial assistance of Rs three lakh to families of each victim of terrorist or communal violence or to persons permanently disabled in such incidents. The assistance will be given even if the families or the permanently disabled receive relief from state governments or Central funds, Information and Broadcasting Minister P R Dasmunsi said.