Central Government to extend affordable housing subsidy to units built on private land

The centre, announced a new public-private partnership (PPP) policy, to boost private investment in affordable housing that allows extending central funds of up to Rs 2.50 lakhs, for each house to be built by private builders even on private land. The policy, which also aims to open up immense potential for private investments in affordable housing projects on government land parcels in urban areas, gives eight PPP options, for developers to invest in the segment, said the newly-appointed Union Urban Development and Housing Minister, Hardeep Singh Puri.

The minister also said developers can also opt for annuity-cum-capital grant-based model, where builders can be given a share of the project cost as upfront payment, or choose cost recovery by builders through rental incomes from houses built on government land. Another option available with the private sector says that against government-mediated payments to builders and transferring houses to beneficiaries in the above four models, promoters will directly deal with buyers and recover costs.

The minister also said developers can also opt for annuity-cum-capital grant-based model, where builders can be given a share of the project cost as upfront payment, or choose cost recovery by builders through rental incomes from houses built on government land. Another option available with the private sector says that against government-mediated payments to builders and transferring houses to beneficiaries in the above four models, promoters will directly deal with buyers and recover costs.