Low-cost housing policy to get leg-up
A family whose monthly income is less than R8,000 will soon become eligible to apply for houses allotted to the economically weaker section (EWS), while those who earn Rs 16,000 a month will be eligible for houses earmarked for the lower income group (LIG).delhi Updated: Nov 12, 2012 02:22 IST
A family whose monthly income is less than R8,000 will soon become eligible to apply for houses allotted to the economically weaker section (EWS), while those who earn Rs 16,000 a month will be eligible for houses earmarked for the lower income group (LIG).
In sync with its ‘aam admi’ policy, the UPA government is planning to expand the net of affordable housing to include more people under the various housing projects for EWS and LIG. At present, a family whose monthly income is R5,000 is eligible for houses allotted to the EWS, while those with income between R5,001 and Rs 10,000 are eligible for houses under LIG.The increase in income slab is one of the many recommendations made by a taskforce on affordable housing headed by housing secretary AK Mishra. The panel submitted its report to housing and urban poverty alleviation minister Ajay Maken last week. "We have endorsed the recommendations of the panel. This will give a big push to our inclusive growth policy," Maken told HT.
To create more housing stock for the EWS and LIG, the panel has also recommended a floor area ratio of 1.75, and density of 350 per hectare for these two segments. This will ensure that more houses can be built in a given space. Of the shortage of 18.78 million housing projects in India, a majority is in the EWS (56%) and LIG (39.4%) segments.
In a first, the panel has also defined what an affordable housing is. Any house whose size varies between 21 sq mt and 61 sq mt will qualify to be called an affordable house. Also, there will be different segment of houses under affordable housing – those between 21 sq mt and 27 sq mt will come under EWS and those between 28 sq mt and 61 sq mt will come under the LIG.
Besides this, the panel wants states to reduce stamp duty for the EWS and LIG. While the panel has recommended that the stamp duty be reduced to 5% (of the total value of a house) for LIG, it has proposed a nominal stamp duty of R100 for the EWS.
“To ensure that states implement it, we will link it to the fund release under the Rajiv Awas Yojana— the government’s slum free initiative,” added Maken.