Private Builders Must Reserve Atleast 35% Houses for Economically Weaker Sections :Housing Minister


Private builders should reserve atleast 35%, or about 1 in 3, of their dwelling units to EWS (economically weaker sections), said Housing Minister Mr.Ajay Maken.

Mr. Maken said at a NHB (National Housing Bank) event at NewDelhi, “There should be a norm that either 35% the dwelling units or / 15% of floor area ratio, whichever is higher, should be allocated to the EWS”

At the event, Mr. Maken formally launched a Credit Risk Guarantee Fund (CRGF) scheme for low income housing.

Mr. Maken also said, ''All the States should implement this norm in all the urban cities. Such a move would address the issue of slums and the housing needs of the poor people.The Delhi Master Plan does stipulate this & it would be in the interest of the poor that other States too follow this norm.

The Housing Minister wants at least 3% of priority sector loans earmarked for the EWSs.

“I will take up this matter (priority sector lending) with the Finance Minister,” Mr. Maken said. The Housing Ministry will soon finalise norms for the Rajiv Awas Yojana, which will facilitate easy flow of funds to municipalities & State Governments for construction of houses for the poor people. Maken indicated that the CRGF will be dovetailed with the Rajiv Awas Yojana.

“Once 35% of dwelling units are allocated, those in the EWS will need funds to buy the units (houses). That is where the CRGF & lending institutions will come in,” Mr. Maken said.

The central Government has formulated the CRGF to provide credit guarantee support to collateral-free / third party guarantee - free individual housing loans up to Rs. 5 lakh extended by eligible lending institutions for low - income housing in urban areas. To mark the launch of operations under the CRGF scheme, 3 lending institutions - SBI (State Bank of India), HDFC & CBI (Central Bank of India) - have entered into an agreement with the Credit Guarantee Trust.

Src: Business Line

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