Budget 2024: Interest subsidy returns under PM Awas Yojana 2.0 (Urban)

Govt allocates ₹4,000 crore for PMAY(U) CLSS component. Sitharaman said government will construct three crore additional houses in rural and urban areas.

Published on: Jul 23, 2024, 21:04:03 IST

By HT News Desk

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Union finance minister Nirmala Sitharaman on Tuesday announced the return of interest backed subsidy under the Pradhan Mantri Awas Yojana (Urban) (PMAY-U) 2.0 scheme and also allocated ₹4,000 crore for the Credit Linked Subsidy Scheme (CLSS) component under the scheme.

Pradhan Mantri Awas Yojana seeks to provide affordable housing. (HT PHOTO)

The finance minister announced a central assistance of ₹2.2 lakh crore over next five years for one crore urban poor and middle-class families to construct houses under the scheme. “Under the PM Awas Yojana Urban 2.0, housing needs of one crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore,” she said.

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The government also plans to provide interest subsidies to facilitate loans at affordable rates. According to the Ministry of Housing and Urban Affairs, the interest subsidy scheme can soon be availed by the economically weaker section (EWS), lower income group (LIG), and middle-income group.

The budget has allocated ₹3,000 crore for the EWS and LIG groups and ₹1,000 crore for the middle-income group to construct houses under CLSS in urban areas. The government did not extend the period for CLSS in 2022.

The ministry as a whole has been allocated ₹82,576 crore for the current financial year, an increase of over ₹6,000 crore from the last financial year. Sitharaman said that through these allocations the government will construct three crore additional houses under the scheme in rural and urban areas.

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Pradhan Mantri Awas Yojana (PMAY) is the government's scheme for affordable housing by providing subsidised home loans based on income. The scheme is implemented across three verticals namely, Beneficiary Led Construction/Enhancement, Affordable housing in partnership, and in-situ Slum Redevelopment.

The government said that modalities of thesecond phase of the scheme, PMAY-U 2.0 has been worked out and the scheme will be launched soon.

(With inputs from PTI)

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