To bolster the government’s affordable housing initiatives, Finance Minister Nirmala Sitharaman unveiled a new scheme during her interim budget speech on February 1. This initiative aims to empower the middle class to purchase or construct their own homes.

Manoj Joshi, Secretary of the Ministry of Housing & Urban Affairs, in an interview with CNBC-TV18, said affordable housing has been identified as a top priority by the Government of India.

The commitment to this cause was underscored by the Prime Minister on August 15, with a subsequent announcement by the Finance Minister. The government aims to provide support to urban housing, affordable housing, and the middle class through a well-crafted scheme aimed at facilitating loans.

As part of the government's commitment to addressing housing shortages, Finance Minister Sitharaman announced the allocation of an additional 20 million houses under the Pradhan Mantri Awas Yojna (Gramin) over the next five years.

Joshi emphasised the shortage of affordable housing and underscored the Centre's dedication to collaborating with states and urban local authorities. The goal is to ensure that the urban planning process generates a sufficient supply of affordable housing. He advocated for incorporating a mandate within the urban planning framework, compelling developers to allocate at least 15% or more of their housing projects to the affordable segment.

In the 2023-2024 fiscal, the government allocated Rs 20,000 crore as special central assistance to states. This financial support was aimed at encouraging urban planning reforms, including the adoption of town planning schemes, the development of townships, increased hiring of urban planners, and amendments to building bylaws. These reforms are strategically designed to reduce the costs associated with affordable housing and create a conducive environment for its expansion.

Source: cnbctv18.com