Affordable Housing Set to Gain Infrastructure Status
The Ministry of Housing and Urban Poverty Alleviation (MHUPA India) is contemplating a pivotal move to include affordable housing in the country's infrastructure list. This strategic inclusion aims to empower lower-income groups to secure more affordable housing options.
Revised Income Limits for Weaker Sections
In a recent development, the MHUPA ministry has revised the income ceilings to enhance eligibility for various ministry schemes. Specifically, the annual household income limit for the Economically Weaker Section (EWS) has been increased to Rs.1 lakh from the previous Rs.60,000. Similarly, the limit for the Lower Income Group (LIG) has been revised upwards to Rs.2 lakh from the earlier Rs.1.2 lakh.
Addressing India's Housing Shortage
According to MHUPA India Minister, Ajay Maken, a staggering 96% of India's total housing shortage affects lower-income groups, with a daunting figure of 18.78 million houses lacking nationwide. Maken emphasized the need for a unified effort from the central government, state governments, and the private sector to alleviate this shortage.
Call to Action for Real Estate Developers
Speaking at a National Real Estate Development Council (NREDC) convention, Minister Maken urged real estate developers to step up and contribute to resolving the housing shortage. He highlighted that constructing affordable homes in larger quantities can significantly reduce production costs, making them more viable for weaker sections. However, he noted that banks face challenges in providing loans to these sections, underscoring the need for innovative solutions.
Enhanced Transparency and Regulatory Framework
The MHUPA ministry also aims to bring about greater transparency within the real estate sector. Towards this goal, a regulatory bill is under consideration, though its introduction will follow the compilation of feedback from various stakeholders.