Business Wire India
The Indian Cabinet has approved an increase in carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under Pradhan Mantri Awas Yojana (PMAY).

PMAY aims to provide houses to all the urban poor by 2022, said Dr Niranjan Hiranandani, CMD, Hiranandani Communities and President, National Real Estate Development Council (NAREDCO). He termed the Cabinet’s decision ‘positive’, pointing out that the move brings the entire demand for affordable housing under the interest subvention scheme – affordable housing comprising the largest chunk of demand for new houses in India.

Under the MIG-I category, the carpet area of the houses has been increased from 90 square metres to 120 square metres, the area under MIG-II segment, has been increased to 150 square metres from the current 110 square metres. Under the MIG-I category, a four percent interest subsidy is provided to the beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh on a loan of up to Rs. 9 lakh. Under the MIG-II category, the beneficiaries with an annual income of Rs. 12 lakh to Rs. 18 lakh get an interest subsidy of three percent on a loan of up to Rs. 12 lakh.

The Cabinet’s decision to hike carpet area of houses eligible for interest subsidy under the PMAY will help middle income buyers make their dream homes a reality, while also helping the real estate industry clear unsold homes. Welcoming the decision, Dr Niranjan Hiranandani said it would help meeting the aspiration of millions of Middle Income Group (MIG) home buyers. "This decision will encourage real estate developers to launch new projects and effectively, boost the economy, GDP growth and employment," he said.

‘Housing for All by 2022’ gets a boost, with the Cabinet’s decision to hike unit size of MIG Houses under Credit Linked Subsidy Scheme, concluded Dr Niranjan Hiranandani.

Dr Niranjan Hiranandani is Founder & CMD, Hiranandani Communities & National President - NAREDCO.