As part of measures to boost the housing sector and aid middle income groups, Finance Minister Nirmala Sitharaman on Wednesday announced that the government will extend the Credit Linked Subsidy Scheme (CLSS) for middle-class borrowers till March 2021.
The Minister said that the move will give a boost of Rs 70,000 crore to the housing sector and middle-income group (those with an annual income of Rs 6-18 lakhs). She informed that as of date, 3.3 lakh families have benefited from the scheme, and going forward, nearly 2.5 lakh families are expected to enroll for the CLSS. The move will likely encourage investments in the housing sector, as per the government, and stimulate demand for steel, cement, transport and other construction materials.
The Pradhan Mantri Awas Yojana (PMAY) CLSS was launched in 2017 with the objective of ‘Housing for All’ wherein eligible borrower is able to get a home loan from banks and housing finance companies at a subsided interest rate.
Nirmala Sitharaman also announced plans of a scheme under PMAY for migrants and the poor in urban areas to provide affordable rental housing. In this, government-funded housing in cities will be converted into Affordable Rental Housing Complexes (ARHC) under a public-private partnership (PPP) model through the concessionaire.
Under the measure, industries employing the labour will be incentivized to develop ARHC on their private lands and operate. State and federal agencies will also be incentivized on similar lines.
"Urban poor can look forward to having some basic accommodation facilities," Sitharaman said.
Unveiling the second tranche of a massive stimulus package pledged by the Modi government to rescue the Indian economy from the devastating fallout of the Coronavirus pandemic, Nirmala Sitharaman announced a package with nine measures for migrant workers, street vendors, small traders, the self-employed and small farmers.