Private builders should reserve at least 35 percent of their dwelling units to economically weaker sections (EWS), Union Housing Minister Ajay Maken has suggested.
"There should be a norm that either 35 per cent of the dwelling units or 15 percent of floor area ratio, whichever is higher should be allocated to the EWS", Maken said at a National Housing Bank event here.
Maken, who formally launched a Credit Risk Guarantee Fund Scheme for low income housing, said that all the States should implement this norm in all the urban cities.
Such a move would address the issue of slums and also the housing needs of the poor, he said.
Maken also highlighted that the Delhi Master Plan already stipulates this norm and it would be in the interest of the poor that other States also follow this norm.
The Housing Minister also wants at least 3 percent of priority sector loans earmarked for economically weaker sections. "I will take up this matter with the Union Finance Minister", Maken said.
The Housing Ministry will also soon finalise norms for Rajiv Awas Yojana, which will facilitate easy flow of funds to municipalities and State Governments for construction of houses for the poor.
Maken also indicated that the newly launched CRGF will be dovetailed to the Rajiv Awas Yojana.
"Once 35 per cent of dwelling units are allocated, those in the EWS will need funds to buy the units. That is where the CRGF and lending institutions will come in", Maken said.
The Government has formulated the CRGF to provide credit guarantee support to collateral free/third party guarantee free individual housing loans upto Rs 5 lakhs extended by eligible lending institutions for low income housing in urban areas.