Govt Extends PMAY CLSS Till March, 2021; Over 2.5 Lakh Middle-Class Home Buyers To Get Benefit

The extension of the scheme for middle-income groups with annual income between Rs 6 lakh-Rs 18 lakh is expected not only to create investment in the housing sector and but also create jobs.

The extension would benefit 2.5 lakh middle income families. (Representative Image/ Getty)

New Delhi: Union Finance Minister Nirmala Sitharaman on Thursday announced that the Credit Linked Subsidy Scheme (CLSS) for middle income groups to buy affordable housing units will be extended till March 31, 2021. The scheme was last extended till March 2020. Addressing the media here, Sitharaman said that the extension would benefit 2.5 lakh middle income families. So far, the scheme has benefitted 3.3 lakh middle class families, she added. "250,000 middle-income families will benefit during 2020-2021 and will lead to investment of over Rs 70,000 crore in housing sector, which has been hit hard due to the prolonged lockdown," Sitharaman said.

Rs 70,000 crore boost to housing sector and middle income group through extension of Credit Linked Subsidy Scheme for MIG under PMAY(Urban)#EconomicPackage#AatmaNirbharBharatPackage#IndiaFightsCorona pic.twitter.com/yxQpQ6xYxl

— Ministry of Finance 🇮🇳 #StayHome #StaySafe (@FinMinIndia) May 14, 2020

The extension of the scheme for middle-income groups with annual income between Rs 6 lakh-Rs 18 lakh is expected not only to create investment in the housing sector and but also create jobs. It will also help stimulate demand for steel, cement, transport and construction materials. Further, the Centre will also launch a scheme under the Pradhan Mantri Awas Yojana for migrant labour and urban poor to building affordable rental housing facilities for them. Under the scheme, government funded housing in cities will be converting to affordable rental housing complexes under the public private partnership mode. Soon after the booster shot was announced by FM Sitharaman in a press conference earlier today, developers and realty sector experts applauded the extension of the credit linked subsidy scheme and the governments decision to come up with affordable rental housing complexes for the migrant workers and urban poor.

Scheme for Affordable Rental Housing Complexes for Migrant Workers and Urban Poor to be launched by Central Government#AatmaNirbharBharatPackage#IndiaFightsCorona pic.twitter.com/YfCDFviuDw

— Ministry of Finance 🇮🇳 #StayHome #StaySafe (@FinMinIndia) May 14, 2020

Speaking to news agency IANS, Anshuman Magazine, Chairman and CEO - India, South East Asia, Middle East & Africa, CBRE said: "The announcement on rural infrastructure and affordable rental accommodations for urban and migrant workers under PPP partnership will open newer avenues for the construction industry. For the middle-income group, the extension of Credit Linked Subsidy Scheme, is a positive step and will further strengthen demand in the affordable housing segment." President of National Real Estate Development Council (NAREDCO), Niranjan Hiranandani told the news agency that rental housing scheme under PMAY offers a business opportunity to the private sector, to build more rental housing stock through the public private partnership (PPP) mode, with a concessionaire arrangement. On the extension of the CLSS, Hiranandani said that it will spur the potential demand of housing units resulting in a cumulative demand for construction services, building materials, finally translating into job creation. Dhruv Agarwala, Group CEO of Housing.com said that the extension of CLSS by one year will prompt many of the fence sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has maximum unsold inventory across the country.