Economical Weaker Section home buyers may get subsidy

If things go according to plan, potential first time home-buyers in the state can qualify for a housing subsidy under the Pradhan Mantri Awas Yojana (PMAY) for up to Rs 2.5 lakh. The project is mooted to meet the target of ‘Housing For All By 2022’.

“This benefit is aimed at first time home buyers and the subsidy will be granted to those who fall under the Economical Weaker Section (EWS) category and whose income does not exceed Rs 25,000 per month,” said Nirmal Deshmukh who is currently the chief executive officer of Dharavi Redevelopment Project (DRP).

However, last month Mr Deshmukh was given the additional charge of director for implementing the PMAY scheme in the state. He is set to retire in May and he will be heading the PMAY implementation in the state post retirement.

“I have mooted the scheme to the Maharashtra Housing and Area Development Authority (Mhada), the nodal agency for implementing and financing PMAY in the state. The proposal is to fund housing subsidy up to Rs 2.5 lakh for the EWS category and for the buyer whose monthly income is not more than Rs 25,000 and is willing to buy house of not more than 30 square metres or 322 square feet,” Mr Deshmukh added.

The Pradhan Mantri Awas Yojana (PMAY) has replaced the Rajiv Gandhi Awas Yojana (RGAY) after the BJP government came to power in 2014. Prime Minister Narendra Modi launched PMAY on June 25, 2015.

“For example, if an individual is interested in buying an apartment not measuring more than 30 metres which would cost him around Rs 20 lakh, the government will pay Rs 2.5 lakh to the buyer and the buyer will have to pay the remaining Rs 17.5 lakh. The apartment can be located anywhere in the state. The nature of the builder of the home, private or public project, will not be an issue,” Mr Deshmukh added.

To address housing requirement of the masses, the Central government has set four components which includes slum redevelopment by using land as resource, credit link subsidy where home loans will given at interest rate 6.5 per cent for 15 years.

The proposed scheme for the state comes under affordable housing partnership initiated with public and private sectors to grant subsidy in monetary terms but up to Rs 2.5 lakh. Lastly, subsidy to individuals for constructing their own houses is also being mooted by the Centre where such individuals can avail monetary assistance up to Rs 1.5 lakh.

“The amount of Rs 2.5 lakh may sound low for a person residing in metropolitan cities. But if you consider the factor that it will given to every first time home buyer, the amount and the number of buyers are too high in number,” Mr Deshmukh said.