In a first, PM Narendra Modi government launches project to build 200,000 affordable homes, ropes in private sector

By: | Updated: April 9, 2017 9:40 PM

The government today launched over 350 projects to build about two lakh houses with a private sector investment of Rs 38,000 crore, a first major initiative of corporates in the Centre's affordable housing scheme.

Housing and Urban Poverty Alleviation (HUPA) Minister M Venkaiah Naidu launched the housing projects at a function at Gandhinagar in Gujarat. (PTI)The government today launched over 350 projects to build about two lakh houses with a private sector investment of Rs 38,000 crore, a first major initiative of corporates in the Centre’s affordable housing scheme. The move comes a day after the Prime Minister’s Office (PMO) held a meeting with private real estate developers with a focus to remove “bottlenecks” to ensure private sector participation in the government’s ambitious ‘Housing-for-all by 2022′ programme. Housing and Urban Poverty Alleviation (HUPA) Minister M Venkaiah Naidu launched the housing projects at a function at Gandhinagar in Gujarat. The Confederation of Real Estate Developers’ Associations of India (CREDAI) members will invest over Rs 38,000 crore to build these houses.

The cost of constructing these units will be in the range of Rs 15 lakh to Rs 30 lakh with an average cost of construction of Rs 18 lakh per house.

Under the Centre’s affordable housing scheme — Pradhan Mantri Awas Yojana-Urban or PMAY(U), the central assistance is provided to each beneficiary in the range of Rs 1 lakh to Rs 2.35 lakh.

Maximum units of over 1 lakh will be constructed in Maharashtra, followed by 41,921 houses in the National Capital Region, 28,465 in Gujarat, 7,037 in Karnataka, and 6,055 in Uttar Pradesh, an official release said here.

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Over 4,000 houses will be built in Rajasthan and about 3,000 in West Bengal.

States like Goa, Hyderabad, Madhya Pradesh and Kerala wil have houses numbering between 1,000 and 2,000.

Less than 1,000 units will be built each in Assam, Tamil Nadu, Odisha, Chhattisgarh and Andhra Pradesh.

Since the launch of PMAY (Urban) in June, 2015, the HUPA Ministry has approved construction of 17.73 lakh affordable houses for urban poor with an investment of Rs 95,660 crore across the country.

For building these houses, central assistance of Rs.27,879 crore has also been approved.

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