Revised MIG Norms to Boost Affordable Housing Under PMAY | CORPORATE ETHOS

Revised MIG Norms to Boost Affordable Housing Under PMAY

By: | June 13, 2018
PMAY

Jun 13: The Ministry of Housing and Urban Affairs has revised the carpet area for houses under the Middle Income Group (MIG) category for interest subsidy under the credit linked subsidy scheme (CLSS) of Pradhan Mantri Awas Yojana (urban).  The carpet area for MIG I has been revised upwards form 120 sq metre to 160 sq m while for MIG II it has been revised from 150 sq m to 200 sq mt.

Benefits  

-The decision is another big step to boost the construction sector that contributes to increased activity on the supply side. This initiative is expected to result in enhanced economic activity that would contribute to improvement in the demand side.

-These enhancements will now enable more MIG customers to qualify for subsidy and avail the benefits provided under the ambitious flagship Mission of Pradhan Mantri Awas Yojana (Urban).

-Apart from increasing the number of beneficiaries, the increase in carpet area will improve the construction activity and will assist in moving the housing sector forward.

-This also augurs well with the Reserve Bank of India policy to revise the housing loan limits for Priority Sector lending (PSL) eligibility where it has been decided to revise the housing loan limits for PSL eligibility from existing ₹28 lakh to ₹35 lakh in metropolitan centres (with population of ten lakh and above), and from existing ₹20 lakh to ₹25 lakh in other centres, provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed ₹45 lakh and ₹30 lakh, respectively.

-The increased construction activity in housing sector has a cascading effect on core sectors like cement, steel, machinery and other allied sectors. More construction activity in the urban areas would result in creation of more jobs for both skilled and unskilled workers.

The CLSS for MIG scheme has gained momentum in the last couple of quarters and the offtake has picked up significantly. As on 11.06.2018, an amount of Rs.736.79 crore has been disbursed to 35,204 beneficiaries belonging to the MIG category.