Not a single unit has been constructed under Prime Minister Narendra Modi’s pet project, Pradhan Mantri Awas Yojana (PMAY) in 2016 — more than one year after the state government announced it would build around 19 lakh affordable homes by 2022 in the whole state.
The project is mooted to meet the target of ‘Housing For All By 2022’. This benefit is aimed at first-time home buyers. Those who fall under the Economically Weaker Section category and whose monthly family income does not exceed Rs 25,000 are eligible for homes constructed under PMAY, which will measure around 322 square feet each. Under the scheme, a homebuyer gets a subsidy of Rs 2.5 lakh from the government, of which Rs 1.5 lakh is contributed by the state government and Rs 1 lakh by the Centre.
“One of the reasons for the slow pace could be a slowdown in the real estate sector throughout the year. Also, factors like introduction of real estate regulator bill and demonetisation contributed as builders (private sector) went on a wait-and-watch phase for a while to avoid change in policies making their projects less lucrative,” a housing department official said.
In order to woo private developers, the state had mooted a model of offering business loans to developers at discounted interest rates. According to the model, when a developer, after getting approval from the state, approaches any particular nationalised bank seeking a loan for construction under PMAY, the banks would in turn approach the Housing and Urban Development Corporation and National Housing Bank with the proposals for seeking loans, which would be provided at lower interest rates of around four to five per cent. The state government would be the handholding agency.
