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The Centre is considering an expansion of the housing subsidy for the urban poor under the Pradhan Mantri Awas Yojana (PMAY), reported CNBC-TV18, citing sources familiar with the discussions.
In the proposed expansion, self-employed individuals, shopkeepers, and small traders are likely to be included, source the business news network.
The subsidised loan in this broader scheme is expected to be linked to the price and size of the housing unit. For a house costing Rs 35 lakh, a subsidised loan of up to Rs 30 lakh is being proposed.
In 2021, the Centre had discontinued the Credit Linked Subsidy Scheme (CLSS) under PMAY, which provided subsidised home loans based on income. Under CLSS, 2,500,000 houses were financed, and a subsidy of Rs 59,000 crore was extended over five years.
The interim Union Budget 2024-25, presented on February 1, allocated Rs 80,671 crore to the flagship housing scheme. Finance Minister Nirmala Sitharaman said the government would introduce a scheme to assist deserving sections of the middle class "living in rented houses, or slums, or chawls and unauthorised colonies" to purchase or construct their own homes.
The PMAY scheme was launched in June 2015, aiming to provide pucca houses with basic amenities to all eligible urban beneficiaries. The mission now aims to add another 20 million houses over the next five years.
Hardeep Singh Puri, the housing and urban affairs minister, said in January that a proposal would be sent to the cabinet on interest subsidies for urban affordable housing.
