The Centre today approved the enhancement of the carpet area of houses for the middle income group (MIG) category under the Pradhan Mantri Awas Yojana- Urban (PMAY-U), a move hailed by realtors' bodies CREDAI and NAREDCO.
Under the MIG-I category, the carpet area of the houses has been enhanced from 90 sq.mtr to 120 sq.mtr, while under the MIG-II segment, it has been increased to 150 sq.mtr from the current 110 sq.mtr, Union minister Ravi Shankar Prasad told reporters while briefing them about the Union cabinet decisions.
Under the MIG-I category, a four-per cent interest subsidy is provided to the beneficiaries with an annual income of Rs 6-12 lakh on a loan of up to Rs 9 lakh and under the MIG-II category, the beneficiaries with an annual income of Rs 12-18 lakh get a three-per cent interest subsidy on a loan of up to Rs 12 lakh.
Hailing the cabinet decision, Union minister Hardeep Singh Puri said it would attract more people in the MIG category to buy houses under the scheme.
An official said many people were not opting to buy houses under the scheme as the previous carpet area did not seem very attractive to them.
Now that the carpet area had been increased, more people would come forward to avail of the benefits, he said, adding that the Centre was expecting an enhanced expenditure of about Rs 1,000-1,200 crore because of the decision.
National Real Estate Development Council (NAREDCO) Chairman Rajeev Talwar and President Niranjan Hiranandani said the decision would help meet the aspiration of millions of home buyers in the MIG category.
The decision, besides helping in clearing the unsold stock, would also encourage the developers to launch new projects, which in turn would boost the economy, GDP growth and employment opportunities, they said, adding that the move would now bring the entire demand for affordable housing under the interest subvention scheme.
Confederation of Real Estate Developers' Associations of India (CREDAI) President Jaxay Shah said, "Housing for All by 2022 has taken a huge leap forward thanks to the increase in the unit size of MIG houses under the Credit Linked Subsidy Scheme.
"The average middle-class in smaller towns and cities will now be able to afford bigger and better quality homes."
Under the PMAY-U, the Centre aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas.
The housing and urban affairs ministry is implementing the Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under the PMAY-U since January 1 this year. The scheme is currently effective till March 31, 2019.