Central Government today announced a new Public-Private Partnership (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. The assistance provided is available even on private lands beside opening up an immense potential for private investments in affordable housing projects on government lands in urban areas.
Minister of Housing & Urban Affairs, Hardeep Singh Puri announced this policy that gives eight PPP options for the private sector to invest in affordable housing segment. He explained that the plan seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging underutilized and un-utilized private and public lands towards meeting the Housing for All target by 2022.
Under the two PPP models, the first model talks on 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).
Following the second option, the 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.