Lok Sabha Question No. 4127 (UNSTARRED), answered on 2018-03-20
Subject: Funding for PMAY
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: SHOBHA KARANDLAJE, PRATHAP SIMHA

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK  SABHA UNSTARRED QUESTION  NO.  4127

TO BE ANSWERED ON MARCH 20, 2018

## FUNDING FOR PMAY

No. 4127

KUMARI SHOBHA KARANDLAJE : SHRI PRATHAP SIMHA :

Will  the  Minister  of  HOUSING  AND  URBAN  AFFAIRS  be  pleased  to state:

- (a) whether the Government proposes to borrow Rs. 10,000 crore from  the  National  Small  Savings  Fund  (NSSF)  for  funding  the Pradhan Mantri Awas Yojana (PMAY) in urban areas and if so, the details thereof;
- (b) whether  modalities  such  as  the  time  period  after  which  the
- Government will start repaying the principal amount has been finalised and if so, the details thereof;
- (c) the total allocation for PMAY (Urban) during the last two years and the current financial year;
- (d)   whether relying on Government-administered corpuses like the NSSF will reduce the costly market borrowings and help rein in
- fiscal deficits; and
- (e) whether  the  Government's  push  for  affordable  housing  has prompted more Private Developers to focus on affordable and
- mid-range homes during the last one year?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI HARDEEP SINGH PURI)

(a) to (d):  Government of India has accorded approval to invest Rs. 8,000  crore  from  the  resources  of  National  Small  Savings  Fund

(NSSF)  in  Building  Materials  and  Technology  Promotion  Council (BMTPC) for a period of ten years for disbursing central assistance, on the advice of the Ministry of Housing and Urban Affairs, under the Pradhan Mantri Awas Yojana (Urban) {PMAY (U)}.  The rate of interest on the loan is 8.4% per annum. The interest is payable half yearly, whereas the principal amount is repayable after completion of the loan period or prior to that with the approval of Ministry of Finance. The payment of interest and repayment of principal are to be backed by budgetary provisions on year to year basis over the period  of  the  loan  tenure.  The  total  budget  allocation  for  central assistance  under  PMAY  (U)  during  the  last  two  years  and  the current year is Rs. 15,025.90 crore.

(e):    Central  Government  provides  for  various  fiscal  incentives  to the developers to invest in Affordable Housing.  Section 80-IBA of the  income  Tax  Act  provides  for  100%  deduction  of  profits  and gains from developing Affordable Housing. Affordable Housing has been accorded infrastructure status by including it in the Harmonized List of Infrastructure. This is to ensure low cost, long term  and  enhanced  resource  flow  for  affordable  housing.  GST Council has lowered the effective GST rate from 12% to 8% for all the  houses  constructed  under  PMAY  (U).  Further,  in  order  to facilitate private sector participation and to meet the growing need of  affordable  housing  in  the  country  the  Ministry  of  Housing  & Urban Affairs, upon several consultations and stakeholder deliberations, has structured eight basic 'PPP Models for Affordable  Housing'  and  shared  these  models  with  all  States/UTs and other concerned stakeholders for adoption and wider implementation.

******