Subsidy enhanced under Indira Awas Yojana

Keeping in view the higher cost of construction of houses, the Finance Minister, Shri P Chidambaram has proposed to enhance the subsidy per unit in respect of the new houses sanctioned after 1st April 2008 from Rs. 25,000/- to Rs. 35,000/- in plain areas and Rs.27,500/- to Rs. 38,500/- in hilly / difficult areas for the construction of new houses for the poor through the Indira Awas Yojana (IAY) as a part of Bharat Nirman Programme. While presenting the Budget proposals for the year 2008-09 in the Lok Sabha today, the Finance Minister informed the House that the subsidy for upgradation of houses will be increased from Rs. 12,500/- per unit to Rs. 15,000/- . He further added that a beneficiary will still need own funds to complete the house. Accordingly the Public sector banks will be advised to include IAY houses under the differential rate of interest scheme and lend upto Rs. 20,000/- per unit at an interest rate of 4 percent. He further informed that the housing for the poor is one of six elements of Bharat Nirman and is implemented through IAY. Against a target of 60 lakh houses, 41.13 houses have been constructed upto December 2007 and cumulative number will be 51.77 lakh houses by the end of March, this year.

Source : Press Information Bureau

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