The Cabinet looks set to grant its approval to the biggest ever financing plan for the PM Awas Yojna (PMAY) on Tuesday to meet the fund requirement for building 1.2 cr affordable houses in urban areas. The Centre's share for building houses under this scheme in the next two financial years has been estimated at around Rs 60,000 cr.
The government is intending to raise this amount from non-budgetary resources, meaning the housing ministry will borrow it from fund-raising entities such as HUDCO or tap the National Small Savings Fund(NSSF), which has deposits of about Rs 1.2 lakh cr.
The housing and urban affairs ministry requires about Rs 8,000-Rs 10,000 cr to meet the targets of the current financial year.
The Budget proposal provides for raising Rs 25,000 cr from extra budgetary support for 2018-19 and similar amount will be required for 2019-20 to ensure there is no shortage of funds.
Finance minister Arun Jaitley, in his Budget speech, had announced to establish Affordable Housing Fund, which will be anchored in the National Housing Bank (NHB) to raise Rs 25,000 cr from non-budgetary resources. The urban component of PMAY is in 4,320 cities and towns, the Housing minister Hardeep Singh Puri had recently said.
So far, the housing ministry has approved 39.25 lakh houses under the housing scheme.