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The Indian government is gearing up to roll out a fresh interest subsidy scheme designed to support the urban poor and the middle class in obtaining home loans, and it's set to launch next month. Housing ministry officials have confirmed that the final touches are being put in place, suggesting it will follow a model akin to the credit-linked subsidy scheme (CLSS) established under the PM Awas Yojna (Urban). This initiative stems from Prime Minister Narendra Modi's announcement during his Independence Day address. He outlined the government's intention to assist middle-class families in realizing their homeownership dreams.
The plan includes provisions for interest rate relief and bank loans to empower those currently living in rented accommodations, slums, chawls, or unauthorised colonies. The expected outcome is substantial savings for these aspiring homeowners. Inside sources have disclosed that the new scheme is set to be an extension of the PM Awas Yojna, with an expansion of eligibility criteria for interest subsidies. The CLSS component of PMAY, active until March 2022, provided interest subsidies ranging from 3% to 6.5%. These subsidies benefited individuals from economically weaker sections (EWS), low-income groups (LIGs), and middle-income groups (MIGs). While PMAY did include a segment focusing on the in-situ development of slums, its success has been somewhat limited, with around 1.12 crore houses sanctioned by the Centre.
Meanwhile, addressing the recommendations of the Amitabh Kant committee regarding stalled real estate projects, the minister has dispatched letters to chief ministers, urging them to consider and implement these proposals. In addition, the Ministry of Housing and Urban Affairs has taken the lead by issuing comprehensive guidelines for operating electric buses within the PM-eBus Sewa scheme. According to officials, the 100 eligible cities can anticipate the arrival of these e-buses within the next six months. This ambitious plan follows the recent Cabinet approval for the deployment of 10,000 e-buses. Priority consideration will be given to cities facing the most pressing bus deficits, especially if they already possess operational depots, adequate land for depot setup, or agreements with power distribution companies to establish e-bus infrastructure.
In summary, the government's forthcoming interest subsidy scheme for urban homebuyers in India demonstrates its dedication to assisting the aspirations of middle-class and underprivileged individuals in achieving their homeownership dreams. This initiative is in line with Prime Minister Narendra Modi's goal of providing affordable housing and financial support to those residing in rented or substandard accommodations. These efforts aim to enhance the urban population's living standards and address crucial housing and transportation requirements. As these schemes come to fruition, they hold the promise of substantially enhancing citizens' lives, encouraging homeownership, and fostering eco-friendly urban living.
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