Govt to launch affordable rental housing scheme, announces FM Sitharaman

Finance Minister Nirmala Sitharaman on Thursday rolled out the second tranche of ₹20 lakh crore economic stimulus package. Today's packages aimed at helping thousands of migrant labourers who were the worst hit by COVID-19.

Amid coronavirus outbreak, the migrant labourers and urban poor face challenges to get rent at affordable price. The Central government will soon provide affordable rental houses to migrant workers and urban poor under Pradhan Mantri Awas Yojana (PMAY) scheme.

The Centre will convert the government funded housing in cities into affordable rental housing complexes under PPP model. Sitharaman said that the central government will incentivize manufacturing units, industries and institutions to develop affordable housing complexes on their private lands.

The central government agencies and state government organisations will be also be encouraged to develop housing complexes, Sitharaman added. The details of the scheme will be released soon.

She also rolled out a ₹70,000 crore boost to the housing sector through one-year extension of subsidised loan for affordable houses for the middle-income group with an annual income of ₹6 lakh to ₹18 lakh.

Nirmala Sitharaman also announced free food-grains for 8 crore migrant workers for next two months at a cost of ₹3,500 crore. Migrant workers who do not have either central or state PDS card, will get 5 kilogram of grains per person and 1 kilogram of 'chana' for two months, she said.

PDS ration cards will soon become portable to allow migrant workers to use their ration cards across states. This move will benefit 67 crore beneficiaries or 83% of PDS beneficiaries, in 23 states by August, finance minister added.

The Credit Linked Subsidy Scheme for middle income group with the annual income of ₹6 lakh to ₹18 lakh to to buy affordable housing units was extended till March 31, 2021. The scheme was last extended till March 2020. Around 2.5 lakh middle income families will be benefitted in the long run, Sitharaman said. The Finance Minister said that it will lead to an investment of ₹70,000 crore in the housing sector and also create jobs.

She also announced ₹6,000 crore employment push, using Compensatory Afforestation Management and Planning Authority (CAMPA) funds.

Prime Minister Narendra Modi on Tuesday announced a ₹20 lakh-crore stimulus package, aimed at making the country self-reliant and reviving stalled economy. The package will focus on land, labour, liquidity and laws and will cater to various sectors including cottage industries, micro, small & medium enterprises, the working class, the middle class and others. This included ₹1.7 lakh crore package comprising of free food grains and cash to poor for three months announced in March, and ₹5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).