Lok Sabha Question No. 124 (UNSTARRED), answered on 2018-12-11
Subject: Affordable Houses
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: SADASHIV KISAN LOKHANDE, ASHOK MAHADEORAO NETE

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 124 TO BE ANSWERED ON DECEMBER11, 2018

## AFFORDABLE HOUSES

No. 124

SHRISADASHIV LOKHANDE: SHRI ASHOK MAHADEORAO NETE:

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

- (a) whether due to rising prices of land and construction cost, the poor people are not getting due benefits despite flexible housing loans being offered by the banks and if so, the details thereof;
- (b) whether the Government has taken or proposes to take any steps for providing affordable housing especially to the poor people by the year 2022;
- (c)
- (d)
- if so, the details thereof; and
- the progress made so far in this regard?

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

- (a)  :    Ministry  of  Finance,  Department  of  Financial  Services  has informed that unit-wise data analysis of outstanding individual housing loans submitted by the Housing Finance Companies (HFCs) and Public Sector Banks (PSBs) to NHB, reveals that the outstanding individual  housing  loans  upto  ₹10  lakh  have  grown  by  C ompound Annual Growth Rate (CAGR) of over 5% during the period 2015-16 to 2017-18. Further, as on 31-03-2018, the unit-wise outstanding individual housing loans upto ₹10 lakh constituted about 51% of the unit-wise total outstanding individual housing loan portfolio of HFCs and PSBs.

(b)to  (d)Government  of  India  has  launched  Pradhan  Mantri  Awas Yojana-Housing for All (Urban) mission on 25 th  June, 2015 which aims to  assist  the  States  /  ULBs  for  providing  housing  for  all  eligible families /  beneficiaries among the urban poor by 2022. The mission comprises four components viz in-situ slum redevelopment; affordable housing through credit-linked subsidy; affordable housing in partnership; and  subsidy for beneficiary-led individual  house construction.

The  Government  has  taken  the  following  steps  aimed  to  provide houses to the common man at affordable price:

- (i) Various fiscal incentives have been provided under section 80- IBA of the Income Tax Act, which provides for 100% deduction of profits and gains for Affordable Housing projects.
- (ii)  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.

(iii) GST Council has lowered the effective GST rate from 12% to 8% (after  deducting  one  third  of  the  amount  charged  for  the  house toward cost of land) for all the houses constructed under PMAY(U).

- (iv) In pursuance of Budget 2018-19, a separate dedicated Affordable Housing Fund (AHF) has been setup 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.

Under the PMAY(U) mission,  a total of 13,571 projects of 4,313 cities in  35  States/UTs  have  been  accepted  for  construction  of  65,43,970 Economically  Weaker  Section  (EWS)  houses  with  Central  share  of Rs.1,00,271.38 Crores of which Rs.33,364.90 crores has been released.

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