The Union cabinet on Wednesday approved “Housing for All”, the NDA government’s flagship programme of building two crore houses by 2022. The scheme is piloted by the housing and urban poverty alleviation ministry.
Aiming to promote affordable housing, the cabinet approved a substantial increase in interest subsidy on housing loans — from 4% to 6.50% — for those from the economically weaker sections (EWS) and low-income groups (LIG). This would bring down the EMIs (equated monthly installments) on housing loans down to Rs 4,050 per month, benefiting the urban poor by Rs 2,582 per month.
Overall, the Centre will provide assistance from Rs 1 lakh to 2.3 lakh per beneficiary under different components of the programme, which will be taken up in each of the 4,041 cities and towns.
Initially, 500 cities, with a population of one lakh and above each and accounting for about 75% of urban population, will be covered.
“Houses of up to 30 square metre carpet area would be built with basic civic and social infrastructure,” said a ministry official. The ministry has said that registration of houses under the scheme would either be in the names of women, or jointly in the name of a wife and her husband.
A 2012 government report said that India has an estimated housing shortage of 18.78 million, of which over 95% is in the EWS and LIG categories. This shortage may increase to 30 million by 2022.