Affordable housing projects in Delhi will be more attractive to builders
The government is planning to encourage the builders to construct more affordable housing projects in Delhi. The Government will raise both the subsidy given to developers, as well as the cost ceiling for construction of affordable apartments in Delhi.
The Delhi government has planned to increase the subsidy (capital assistance) from the current Rs 50,000 to Rs 80,000 per dwelling unit. This subsidy will be given to developers building affordable housing meant for economically weaker sections (EWS).
As the cost of construction has increased, the government is thinking is to raise the loan ceiling for subsidy to Rs 5 lakh from Rs 1 lakh for such dwelling units of affordable properties.
The revision aims at encouraging not just the end-user but also the developers to go for more and more affordable housing projects, which will reduce the housing shortage in urban areas.
A technical group constituted by the Ministry had estimated urban housing shortage at the beginning of the Eleventh Plan (2007-08) at 24.71 million dwelling units, which it projected, will increase to 26.53 million by the end of Eleventh Plan (2011-12).
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Source: The Hindu Business Line
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