The Government has paved the way for the launch of ‘housing for all by 2022’ scheme aimed at the urban poor. A decision to this effect was taken by the Union Cabinet on Wednesday.

Under the scheme, Central assistance of ₹1- 2.3 lakh per beneficiary would be provided depending on the category defined.

The scheme has four components — 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 and private sectors; subsidy for beneficiary-led individual house construction or enhancement.

The income ceiling defining economically weaker section (EWS) has also been revised from ₹1 lakh to ₹3 lakh per annum. The ceiling for low income group (LIG) has been hiked from ₹1-2 lakh earlier to ₹3-6 lakh now, bringing more people under the beneficiary bracket.

Under the scheme, Central grant of ₹1 lakh a house, on an average, will be available under the slum rehabilitation programme, an official statement said, adding that States can flexibly deploy this grant to any slum rehabilitation project.

Also, an interest subsidy of 6.5 per cent on housing loans availed up to tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on net present value basis would be about ₹2.3 lakh per house for both the categories, it said.

Briefing the media persons on the Cabinet decisions Minister for Information and Technology Ravi Shankar Prasad said central assistance at ₹1.5 lakh per house for EWS category will be provided under the affordable housing in partnership with private and public sector, provided 35 per cent of dwelling units of the projects proposed are earmarked for EWS category. Under the previous policy, this assistance was ₹ 75,000 per house.

Central scheme The scheme will be implemented as a centrally-sponsored scheme except the credit linked subsidy component, which will be implemented as a central sector scheme.

“Houses constructed under the mission would be allotted in the name of the female head of the households or in the joint name of the male head of the household and his wife,” it said. The scheme will cover 4,041 statutory towns with initial focus on 500 Class-I cities. The mission will be implemented in three phases — 100 cities from April 2015 to March 2017; additional 200 cities between April 2017 and March 2019; and remaining cities from April 2019 to March 2022, with room for some flexibility.

While two crore houses are estimated to be built, the exact number would depend on demand survey for which all states/cities will undertake detailed demand assessment

Additionally, a technology sub-mission would be set up to facilitate adoption of modern, innovative and green technologies and building material for faster and quality construction of houses, an official statement said.

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