Lok Sabha Question No. 255 (STARRED), answered on 2016-08-03
Subject: Affordable Housing
Ministry: HOUSING AND URBAN  POVERTY ALLEVIATION
Asked by: JYOTIRADITYA MADHAVRAO SCINDIA

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN POVERTY ALLEVIATION LOK SABHA STARRED QUESTION NO. 255*

## TO BE ANSWERED ON AUGUST 03, 2016 AFFORDABLE HOUSING

No. 255*    SHRI JYOTIRADITYA M. SCINDIA:

## SHRI GAURAV GOGOI:

Will the Minister of HOUSING AND URBAN POVERTY

ALLEVIATION be pleased to state:

- (a) the details of criterion of interest subvention subsidy or
- incremental housing under housing for all;
- (b) whether the Government has delineated the definition and scope of the term 'Affordable Housing' under the housing for all (urban) mission and if so, the details thereof;
- (c) whether there is a provision for mandatory social audit of housing
- projects  by  the  States/UTs/urban  local  bodies,  and  if  not,  the reasons therefor;
- (d) whether the mission 'Housing for all' incorporates provisions for penalising  forced  evictions  in  providing  'Affordable  Housing  in
- Partnership' on private land; and
- (e) if not, the reasons therefor?

## ANSWER

THE MINISTER OF HOUSING AND URBAN POVERTY ALLEVIATION

[SHRI M. VENKAIAH NAIDU]

(a) to (e): A Statement is laid on the Table of the Sabha.

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## STATEMENT

STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION  NO.  255*  FOR  03.08.2016  REGARDING  'AFFORDABLE

HOUSING'

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(a) & (b): The Pradhan Mantri Awas Yojana (Urban) {PMAY[U]}

Mission launched by the Government covers beneficiaries belonging to the  Economically  Weaker  Section  (EWS)  and  Lower  Income  Group (LIG).    The  EWS  households  are  defined  as  households  having  an annual  income  up  to  Rs.3,00,000/-  and  LIG  households  are  those having annual income between Rs.3,00,000 and up to Rs.6,00,000. The PMAY(U)  mission  guidelines,  however,  does  not  define  the  term 'Affordable Housing' as a universal usage.

Under  Credit  Linked  Subsidy  Scheme  (CLSS)  component  of  Pradhan Mantri  Awas  Yojan  (Urban)  {PMAY[U]},  beneficiaries  of  Economically Weaker  Section  (EWS)  and  Low  Income  Group  (LIG)  not  owning  a pucca  house  anywhere  in  India  and  seeking  housing  loans  (for  new construction and for addition of rooms, kitchen, toilet etc. to existing dwellings  as  incremental  housing)  from  Banks,  Housing  Finance Companies  and  other  such  identified  institutions  are  eligible  for  an interest subsidy at the rate of 6.5% for a maximum tenure of 15 years.

The carpet area of houses being constructed or enhanced under this component  of  the  mission  should  be  upto  30  square  metres  and  60 square metres for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area, but interest subvention would be limited to first Rs. 6 lakh only.

The credit linked subsidy is available only for loan amounts upto 6 lakh and additional loans beyond 6 lakh, if any, are at nonsubsidized rate. The  interest  subsidy  is  credited  upfront  to  the  loan  account  of beneficiaries and the Net Present Value (NPV) of the interest subsidy is calculated at a discount rate of 9%.

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(c) : PMAY(U)  mission  guidelines  provide  for  assisting  State  /  UT Governments in undertaking social audit of the projects being implemented under the Mission. The social audit would be carried out by the State / UT governments and ULBs, inter-alia, through creditable technical, architectural and design institutes.

(d) & (e): 'Land' and 'Colonisation' being State subjects, it is for State / UT Governments to provide encumbrance free land for projects under the PMAY (U) Mission.

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