The Union Cabinet on Thursday approved increase in the carpet area of the affordable houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under the Pradhan Mantri AwasYojana (Urban).
Under the MIG I (Rs. 6-12 lakh/annum) category of CLSS, the carpet area will be increased up to 120 sq metre from 90 sq metre. The carpet area in the MIG II (Rs. 12-18 lakh/annum) category will be increased to 150 sq metre from the existing 110 sq metre.
The decision will be retrospectively implemented, effective from January 1, 2017, the date the CLSS for MIG was implemented. The eligibility criteria and interest subsidies on loans remain unchanged.
The decision could help homebuyers access bigger, ready-to-move-in houses at lower costs. The developers have also hailed the government’s decision as it would help them clear large unsold inventories.
Mr. R. K Arora Chairman, Supertech Limited said, “The real sector which is at inflection point the decision to increase size of MIG-I and MIG-II category flats under PMAY Scheme will certainly bring cheers and positive sentiments to buyers, developers and housing finance community. For developers, the move will certainly help to clear the unsold inventory whereas the buyers can get more spacious homes and avail the subsidy benefits of Rs. 2.50 lacs at accessible rates. By announcing such schemes, we believe it will help bringing the entire demand for affordable housing under the interest subvention scheme. Further, we believe this will boost demand and help our company to achieve its sales target”.
