
Bengaluru: In a significant move to address the housing crisis for the economically disadvantaged, the Karnataka State government announced on Thursday its decision to provide an extra financial aid of ₹3.5 lakh per house constructed under the Pradhan Mantri Awas Yojana (PMAY). The initiative aims to alleviate the challenges faced by approximately 1.80 lakh houses that were allocated between 2015 and 2018, currently stalled at various construction stages due to beneficiaries’ inability to meet their financial obligations.
- Problem: 1.8 lakh houses under PMAY in Madhya Pradesh remained incomplete due to beneficiaries’ inability to pay their share (previously ₹4.5 lakh).
- Solution: State government announces additional financial assistance of ₹3.5 lakh per house, reducing beneficiary contribution to ₹1 lakh.
- Immediate Action: ₹500 crore allocated to complete nearly 48,700 houses nearing completion. Remaining funds to be released in stages.
- Target: Complete and hand over all 1.80 lakh houses within two years.
- Additional Measures: Chief Minister to seek GST waiver on PMAY housing for further cost reduction.
The Cabinet, convening on Thursday, approved an immediate allocation of ₹500 crore to finalize the construction of approximately 48,700 homes on the verge of completion. The remaining funds will be disbursed in phases. Housing Minister B.Z. Zameer Ahmed Khan, addressing the press after the Cabinet meeting, highlighted the predicament, stating, “Since 2018, not one house could be sanctioned, as beneficiaries failed to pay their share of ₹4.5 lakh.”
To expedite the completion of these homes, beneficiaries, who were initially required to contribute ₹4.5 lakh, will now only need to pay ₹1 lakh. The State government will cover the remaining ₹3.35 lakh, in addition to the ₹1.25 lakh designated for general and ₹2 lakh for SC/ST families as financial assistance. Minister Khan affirmed the government’s commitment to completing and delivering 1.80 lakh homes within the next two years.
Moreover, Minister Khan highlighted the Centre’s role in the housing scheme, noting that while the Centre’s share is ₹1.5 lakh, ₹1.32 lakh was deducted as GST at an 18% rate. He announced that the Chief Minister will address the GST concern, seeking a waiver on housing for the impoverished from the Centre.