A policy that will pave way for allotment of low-cost houses to economically weaker sections (EWS) and low income groups (LIG) has been cleared by the central government.
The housing and urban poverty alleviation ministry had drafted the policy in view of a report that said India was short of nearly 19 million houses, with approximately 18 million of them in EWS and LIG categories.
The policy allows households with an annual income of up to Rs. 2 lakh to apply for the subsidised houses.
“We have sent the draft policy to states for their feedback," a ministry official said.
Such low-cost houses will cost Rs. 4-10 lakh, ministry sources said, though the draft policy does not specify the cost of an affordable house under the scheme.
The houses with a proposed carpet area of 21-27sq m and 28-60sq m respectively for LIG and EWS categories would be developed in partnership with either state housing boards or private developers.
While the Centre would provide Rs. 75,000 per dwelling unit to the project developer, state governments will chip in by providing incentives like subsidised land for housing and fast project approvals to developers to facilitate accelerated construction.
“Intended beneficiaries can avail of loans with subsidised interest rates for buying houses,” said the official.
The houses will be sold by the developer/ housing boards at rates fixed by the states, while beneficiaries will be selected through draw of lots.
Creation of rental housing stock and dormitories for new migrants would also be encouraged under the policy.