Housing-for-all-by-2022 mission may open 3 lakh crore bonanza; MSMEs to benefit
Updated: Jun 19, 2015 02:45:11pm
New Delhi, June 19 (KNN) The Union Cabinet chaired by the Prime Minister Narendra Modi on June 18 approved the launch of “Housing for All by 2022” Mission aimed at building of affordable houses on mass scale.
The micro, small and medium enterprises (MSMEs) are upbeat on the announcement as growth of over 60 product categories are directly linked to housing sector.
“If you take the cement and steel out, almost everything else in a middle class household has an MSME stamp: stone and granite flooring, furniture, electricals, building hardware, glass, doors and windows, paint, upholstery and curtains among others”, said Dr. Sangam Kurade, President of Federation of Indian Micro and Small & Medium Enterprises (FISME).
“A growth impulse in the housing sector- which has a much higher multiplier effect, the entire economy will get a big boost and MSMEs will certainly benefit from this initiative,” FISME President said.
The scheme, being launched in phases, will cover the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and will largely be implemented as a Centrally Sponsored Scheme.
It is estimated that while the central government may be providing funds to the tune of 2-3 lakh crore rupees, the scheme may pull investment in the range of 12-13 lakh crore.
‘The Mission also prescribes certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing’, the official note said.
The Mission targets inter alia Rehabilitation of Slum Dwellers with participation of private developers using land as a resource; Promotion of affordable housing for weaker section through credit linked subsidy; Affordable housing in partnership with Public & Private sectors and Subsidy for beneficiary-led individual house construction or enhancement.
Central grant of Rs one lakh per house, on an average, will be available under the slum rehabilitation programme.
Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed up to a tenure of 15 years will be provided to EWS/LIG categories with the subsidy pay-out on NPV basis would be about Rs 2.3 lakh per house for both the categories.
Central assistance at the rate of Rs.1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. (KNN/AB)
The micro, small and medium enterprises (MSMEs) are upbeat on the announcement as growth of over 60 product categories are directly linked to housing sector.
“If you take the cement and steel out, almost everything else in a middle class household has an MSME stamp: stone and granite flooring, furniture, electricals, building hardware, glass, doors and windows, paint, upholstery and curtains among others”, said Dr. Sangam Kurade, President of Federation of Indian Micro and Small & Medium Enterprises (FISME).
“A growth impulse in the housing sector- which has a much higher multiplier effect, the entire economy will get a big boost and MSMEs will certainly benefit from this initiative,” FISME President said.
The scheme, being launched in phases, will cover the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and will largely be implemented as a Centrally Sponsored Scheme.
It is estimated that while the central government may be providing funds to the tune of 2-3 lakh crore rupees, the scheme may pull investment in the range of 12-13 lakh crore.
‘The Mission also prescribes certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing’, the official note said.
The Mission targets inter alia Rehabilitation of Slum Dwellers with participation of private developers using land as a resource; Promotion of affordable housing for weaker section through credit linked subsidy; Affordable housing in partnership with Public & Private sectors and Subsidy for beneficiary-led individual house construction or enhancement.
Central grant of Rs one lakh per house, on an average, will be available under the slum rehabilitation programme.
Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed up to a tenure of 15 years will be provided to EWS/LIG categories with the subsidy pay-out on NPV basis would be about Rs 2.3 lakh per house for both the categories.
Central assistance at the rate of Rs.1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. (KNN/AB)
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