MUMBAI: Taking its efforts to achieve ‘Housing for All by 2022’ further, the central government has announced a new public-private partnership (PPP) policy for affordable housing that allows extending central assistance of up to Rs.2.50 lakh per each house to be built by private builders even on private lands.
Under this policy announced by Minister of Housing & Urban Affairs Hardeep Singh Puri, eight PPP (Public Private Partnership) models have been provided for private sector to invest in affordable housing segment.
It has also opened potential for private investments in affordable housing projects on government lands in urban areas.
While addressing real estate body NAREDCO’s summit, Puri explained that this policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging under-utilized and un-utilized private and public lands towards meeting the target of Housing for All.
“We are not being prescriptive or restrictive with these models. Land being a state subject, the the governments can come up with more models that would help in pushing affordable housing efforts further,” Puri said.
The two PPP models for private investments in affordable housing on private lands include extending central assistance of about Rs 2.50 lakh per each house as interest subsidy on bank loans as upfront payment under the Credit Linked Subsidy Component (CLSS) component of Pradhan Mantri Awas yojana (Urban). Under the second option, central assistance of Rs 1.50 lakh per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loans.
Puri stated that eight PPP options, including six for promoting affordable housing with private investments using government lands have been evolved after extensive consultations with States, promoter bodies and other stakeholders.