PMO calls meeting of private builders to review affordable housing programme

The prime minister's office (PMO) is reported to have called a meeting of builders associations to review the government's affordable housing programme as it targets to achieve 'Housing for All' by 2022.

The PMO has called realtors' body CREDAI and NAREDCO to understand the problems faced by the developers in launching affordable housing projects, sources said.

The government has accorded infrastructure status to affordable housing segment in this year's budget to give a boost to the real estate sector.

In December last year, Prime Minister Narendra Modi had announced interest subsidy of up to four per cent on loans taken in the new year under the Pradhan Mantri Awaas Yojana.

In urban areas housing loans of up to Rs9 lakh and up to Rs12 lakh will receive interest subsidy of 4 per cent and 3 per cent respectively, while in rural areas loans up to Rs2 lakh will get an interest subvention of 3 per cent.

Modi had also said that 33 per cent more homes will be built for the poor under this scheme in rural areas.

However, these initiatives have not helped to give a big boost to the housing sector so far.

Reports said, CREDAI is likely to make presentation on how to accelerate affordable housing projects in the country and to enable home buyers to encash the subsidy benefits under the Pradhan Mantri Awaas Yojana.

Minister for urban development and housing and urban poverty alleviation M Venkaiah Naidu had, earlier this year, said he was "disappointed" that not a single proposal had come from the private builders for the affordable housing projects.

Sixty years after independence, millions of poor in the country do not have their own home.