Lok Sabha Question No. 2961 (UNSTARRED), answered on 2018-03-13
Subject: Sale of Housing Units
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: MIDHUN REDDY

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 2961

TO BE ANSWERED ON MARCH 13, 2018

## SALE OF HOUSING UNITS

No. 2961 SHRI P. V. MIDHUN REDDY:

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

- (a) whether  it  is  fact  that  housing  sales  have  dipped  during  the financial year 2017-18;
- (b) if so, the reasons therefor; and
- (c) the  steps  taken  by  the  Government  to  boost  the  housing sector?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

- (a) & (b):   Housing  sales  are  market  driven  and  also  depend  upon cyclical  demand  and  supply  factors.  However,  National Housing Bank (NHB) has informed that there is a correlation between housing sales and housing loans and based on information regarding loan disbursements made

.......2/-

by  Public  Sector  Banks  (PSBs)  and  Housing  Finance Companies  (HFCs),  during  the  financial  year  2016-17,  a total of 35,56,171 housing loan accounts were disbursed by  PSBs  and  HFCs  whereas  during  the  financial  year 2017-18  (till  31.12.2017),  a  total  of  38,60,630  housing loan  accounts  have been  disbursed. Hence,  in this financial  year,  more  housing  loan  disbursements  have been  made  by  PSBs  and  HFCs  as  compared  to  the previous financial year with a growth rate of 8.56%.

- (c):  The Central Government has launched the Pradhan Mantri Awas Yojana (PMAY) (Urban) on 25 June, 2015 to facilitate the efforts of  States  /  Union  Territories  (UTs)  to  address  the  housing shortage among the urban poor. PMAY (U) has four verticals viz. In  Situ  Slum  Redevelopment  (ISSR),  Affordable  Housing  in Partnership  (AHP),  Credit  Linked  Subsidy  Scheme  (CLSS)  and Beneficiary-Led  Individual  House  Construction  (BLC).  States/ UTs can approve project proposals under any of the available verticals of the Mission to address the housing shortage.

The PMAY (U) scheme has made progress since its inception. The Ministry  has sanctioned  40.62  lakh  houses  till  28.02.2018 with an investment of Rs. 2,25,219 crore which includes central assistance of Rs. 62,464 crore.

The Government has taken the following initiatives to improve the  performance  under  Pradhan  Mantri  Awas  Yojana  (PMAY) (Urban) so as to provide Housing for All by 2022:

- (i) The  scope  of  the  Credit  Linked  Subsidy  Scheme  (CLSS) has  been  expanded  w.e.f.  01.01.2017,  to  include  the Middle Income Group (MIG) covering two income categories  of  annual  household  income  between  Rs.  6 lakh and Rs 12 lakh as MIG-I and between Rs. 12 lakh and Rs. 18 lakh MIG-II. For MIG-I, an interest subsidy of 4% for loan  amounts up to Rs 9 lakh and for MIG-II, an interest subsidy  of  3%  for  loan  amounts  up  to  Rs.  12  lakh  is available for eligible households.
- (ii) Carpet  area  of  houses  eligible  for  interest  subsidy  under CLSS for MIG has been increased from 90 square metre in respect of MIG- I to 'up to 120 square metre' and, in respect of MIG- II from 110 square metre to 'up to 150 square metre'.
- (iii) Coverage under PMAY (Urban) has been increased to include areas  falling  within  notified  Planning/Development  area under the jurisdiction of an Industrial Development Authority/Special Area  Development  Authority  /  Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations.

- (iv) Various fiscal incentives have been provided under section 80-IBA of the Income Tax Act, which gives 100% deduction  of  profits  and  gains  for  Affordable  Housing projects.
- (v) Affordable Housing has been accorded Infrastructure Status by including it in the Harmonised List of Infrastructure.  This is to ensure low cost, long term and enhanced resource flow for affordable housing.
- (vi) GST Council has lowered the effective GST rate from 12%
- to 8% (after deducting one third of the amount charged for the house  towards  cost  of  land) for all  the  houses constructed under PMAY (U).
- (vii) Eight  'PPP  Models  for  Affordable  Housing'  have  been
- circulated  to  States/Union  Territories  (UTs)  to  facilitate private sector participation in order to meet the growing need for affordable housing.
- (viii) In  Budget  2018-19,  an  announcement  has  been  made  to set  up  a  separate  dedicated  Affordable  Housing  Fund (AHF)  in  National  Housing  Bank  (NHB).  This  fund  will facilitate refinancing for Private Lending Institutions (PLIs) under (i) beneficiary-led individual house construction  or  enhancement  under  PMAY  (U)  and  (ii)
- construction of affordable housing projects.
- (ix) A National Urban Housing Fund for Rs. 60,000 crores has been set  up  in  Ministry  of  Housing  and  Urban  Affairs  for raising Extra Budgetary Resources (EBR) in phases for the
- rapid implementation of (PMAY) (U).

********