New Delhi: The Centre approved the enhancement of the carpet area of houses for the Middle Income Group (MIG) category under the Pradhan Mantri Awas Yojana- Urban (PMAY-U), a move hailed by realtors’ bodies CREDAI and NAREDCO.
Under the MIG-I category, the carpet area of the houses has been enhanced from 90 sq.mtr to 120 sq.mtr, while under the MIG-II segment, it has been increased to 150 sq.mtr from the current 110 sq.mtr, Union minister Ravi Shankar Prasad told reporters on Thursday while briefing them about the Union cabinet decisions.
For the MIG-I category, a four-per cent interest subsidy is provided to the beneficiaries with an annual income of Rs 6-12 lakh on a loan of up to Rs 9 lakh.
Under the MIG-II category, the beneficiaries with an annual income of Rs 12-18 lakh get a three-per cent interest subsidy on a loan of up to Rs 12 lakh.
Hailing the cabinet decision, Union minister Hardeep Singh Puri said it would attract more people in the MIG category to buy houses under the scheme.
According to sources, many people were not opting to buy houses under the scheme as the previous carpet area did not seem very attractive to them.
The decision, besides helping in clearing the unsold stock, would also encourage the developers to launch new projects, which in turn would boost the economy, GDP growth and employment opportunities.
Under the PMAY-U, the Centre aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas.
The housing and urban affairs ministry is implementing the Credit-Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under the PMAY-U since January 1 this year. The scheme is currently effective till March 31, 2019.