Shri Hardeep S. Puri, Minister of State (I/C) for Ministry of Housing & Urban Affairs today informed that Rs. 41,765 crores have been allocated to the Ministry during 2018-19 as against Rs. 40,617 crores during 2017-18 which translates into an increase of nearly 3% in gross Budgetary support. Briefing the Media persons on the Budget allocation to his Ministry, Shri Puri informed that the outlay for PMAY (Urban) has been increased by Rs. 25,000 crore in extra budgetary resources for the implementation of PMAY in the financial year 2018-2019. It will be raised outside general budget. Budgetary support is Rs.6500 crore which translates into an effective enhancement of 520% over previous year. The coverage in PMAY(U) is in 4,320 cities which includes 472 Class – 1 cities. Around 37.45 lakh dwelling units in 7,474 projects with an investment of Rs. 2,03,752 crore involving Central assistance of Rs. 57,681 Crore have been accepted under PMAY in the last 31 months. Out of this, 19.49 lakh houses have been grounded and 3,19,648 houses have already been completed. A total of 2,78,267 houses have been occupied, he informed.Union Budget 2018-19 builds on the key initiatives of the Government in the affordable housing sector and real estate and the past Union Budgets. The quantum of funds required to adequately meet the low cost housing has gathered momentum with the above progress and increased scope of PMAY(Urban). The announcement of a dedicated “Affordable Housing Fund” will go a long way in meeting this requirement. NHB will be working out the modalities for quick operationalization of the Fund.Some of the Recent Initiatives include: -
- The scope of the Credit Linked Subsidy Scheme (CLSS) for EWS/LIG has been expanded to include the Middle-Income Group (MIG) w.e.f 01.01.2017 covering two income categories between Rs. 6 lakh and Rs 12 lakh (MIG-I) and between Rs. 12 lakh and Rs. 18 lakh (MIG-II) household income. For MIG-I, an interest subsidy of 4% for loan amounts up to Rs 9 lakh and for MIG-II, an interest subsidy of 3% for loan amounts up to Rs. 12 lakh is available to eligible persons/households.
- In another major initiative, the Central Government has also increased the carpet area of 90 square metre to “up to 120 square metre” in respect of MIG I and, in respect of MIG II from 110 square metre to “up to 150 square metre”.
- Keeping in view feedback from various stakeholders and State Governments, the Central Government has also recently increased the coverage under PMAY(Urban) to include areas falling within notified Planning/Development area under the jurisdiction of an Industrial Development Authority/Special Area Development Authority / Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations.
The additional burden of Capital Gains on Real Estate Transactions owing to the difference between circle rate or sale consideration has been rationalized as no adjustment will be required if the circle rates do not exceed 5% of the sale consideration price. This would facilitate smoother real estate transactions.
The GST council had recently announced a lowering of GST rate from 12% to 8% (after deducting one third of the amount charged for the house towards cost of land) for the houses constructed or acquired under the CLSS vertical of PMAY-Urban covering EWS, LIG, MIG I and MIG II and has been in effect from January 25, 2018. This concessional rate is already applicable to the other three verticals of PMAY (Urban) viz. In Situ Slum Rehabilitation, Affordable Housing in Partnership and Beneficiary Led Construction. Thus, most of the housing projects in the affordable segment in the country would now attract GST of 8% (after deducting value of land).The recently revised FDI Circular (Jan 10, 2018) permits FDI to Real Estate Brokering Service. This would further professionalise the Real estate sector with more organised corporate entities getting into the sector. Overall, the Union Budget coupled with the recent initiatives will have a positive impact on the Housing and Real Estate Sector in India.
Rs. 2500 crore have been allocated under the SBM during 2018-19 which translates into an increase of 8.69% over last year’s allocation. As far as SBM-Urban is concerned, as against the Mission period target of 66 lakh in IHHL, 80% toilets, i.e. nearly 52 lakhs have been constructed and / or under construction. Balance of 13.4 lakh units of IHHL is expected to be completed by October 2018. SBM Urban also targets to construct 5.02 lakh seats of community/public toilets during the Mission, against which 3 lakhs seats have been constructed or are under construction (i.e. 64%). Construction of the balance 1.8 lakh seats of community / public toilets are expected to be completed before 2nd October 2018.
An amount of Rs 6169 Crore, which is 54.2% over last year’s allocation has been proposed during 2018-19 under the Smart Citis Mission. The Government of India launched the Smart Cities Mission in June 2015. Under the Mission, 99 cities have been selected so far. While 20 cities were selected in Round 1 in January 2016, 13 cities in Fast-track Round in May 2016, 27 cities in Round 2 in September, 2016, 30 cities in Round 3 in June 2017 and 9 cities in Round 4 in January 2018. A total investment of Rs. 2,03,979 crore has been proposed by these 99 smart cities in their Smart City Plans. So far,
- 86 Smart Cities have incorporated their Special Purpose Vehicles (SPVs) and 62 Cities have procured PMCs. Till now projects worth
- Rs. 5,265 crore have been fully or partially completed.
- Work Orders have been issued for projects worth Rs. 15,992 Crore (under implementation),
- tenders issued for projects worth Rs. 19,070 crore and
- projects worth Rs. 98,989 crore are under DPR stage.
Rs 6000 crores have been allocated for the AMRUT mission during 2018-19 as against last years allocation of Rs 5000 crore which is an increase of 20%. Till 31st January 2018, the implementation status of the Mission is as under:
- Work on 308 projects worth Rs.186 crore have been completed.
- Contracts for 1,632 projects worth Rs.34,187 crore have been awarded.
- Furthermore, 784 projects worth Rs. 12,903 crore are at tendering stage, DPRs have been approved for 1,159 projects worth Rs. 11,178 crore and DPRs for 871 projects worth Rs.14,014 crore are under preparation.