Centre announces new PPP Policy to promote private investments in affordable housing

hardeepsinghpuriBy Accommodation Times Bureau

Central Government today announced a new PPP Policy for Affordable Housing that allows extending central assistance of up to Rs.2.50 lakh  per each house to be built by private builders even on private lands besides opening up immense potential for private investments in affordable housing projects on government lands in urban areas.

Minister of Housing & Urban Affairs Shri Hardeep Singh Puri announced this policy that gives eight PPP (Public Private Partnership) options for private sector to invest in affordable housing segment. He was addressing the ‘Real Estate & Infrastructure Investors Summit-2017’ organized by real estate body NAREDCO in Mumbai.  Shri Puri explained that this policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging under utilized and un-utilized private and public lands towards meeting the Housing for All target by 2022..

The two PPP models for private investments in affordable housing on private lands include extending  central assistance of about Rs.2.50 lakh per each house as interest subsidy on bank loans as upfront payment under the Credit Linked Subsidy Component (CLSS) component of Pradhan Mantri Awas yojana (Urban). Under the second option, central assistance of Rs.1.50 lakh per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loans.

Shri Puri stated that eight PPP options, including six for promoting affordable housing with private investments using government lands have been evolved after extensive consultations with States, promoter bodies and other stakeholders. The six models using government lands are:





Similar Articles

Leave a Reply

Top