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Governments’ new PPP Policy a much needed Push for Affordable Housing

During the Real Estate and Infrastructure Investors Summit 2017, organized by real estate body National Real Estate Development Council (NAREDCO), minister of housing and urban affairs Hardeep Singh introduced eight PPP options for the private sector to invest in affordable housing segment.

Under the six government land based PPP models, beneficiaries can avail central assistance of Rs. 1 to Rs. 2.50 lac per house.

  • The policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them best, besides leveraging under-utilised and unutilised private and public lands.
  • Hardeep Singh said that out of these 8 models, two involve extending central assistance of around 2.5 lac per house to be built by private builders even on private land as interest subsidy on bank loans in upfront payment under the Credit Linked Subsidy Component (CLSS) component of the Pradhan Mantri Awas Yojana (Urban).
  • The second option would be central assistance of Rs. 1.50 lac per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loan.
  • The other six options include promoting affordable housing with private investments using government land.
  • A few of the models include allocating government land to private firms based on the least cost of construction.
  • Beneficiaries will be identified as per the norms of PMAY (Urban).


Sources: Hindustan Times

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