On the fourth anniversary of his current five-year term, chief minister Naveen Patnaik's cabinet approved a new rural housing scheme called ‘Mo Ghara’, which is aimed at those who have been left out of central and state schemes.
The government plans to spend ₹2,150 crore over the next two years, benefiting four lakh families under the scheme. The application process will start from 16 June.
Speaking to the media after the cabinet approved the scheme, panchayati raj minister Pradip Amat said that the lower income and lower middle income group of families, with a monthly income of less than ₹25,000, who had been left out of the existing housing schemes due to stringent eligibility criteria or due to insufficient allocation, would benefit from the new scheme. “The government is committed to ensuring that left out kutcha houses are converted into pucca houses on priority,” he said.
Families who had received housing assistance of a smaller amount in the past and now want to upgrade or expand their houses can also use the new scheme, he said.
Eligible beneficiaries can take loans of up to ₹3 lakh under the credit linked scheme with capital subsidy, which will be fully funded from the state budget. The government will bear interest ranging from ₹30,000 to ₹70,000 for different amounts of loan starting from ₹1 lakh. Vulnerable sections such as SCs, STs and households led by persons with disabilities will get higher rebates.
While banks will not charge a processing fee for the sanction of the loan under ‘Mo Ghara’, the government will waive off the registration fee and stamp duties required during the mortgage of the title deed and reimburse the legal consultation fee, which has been standardised to a maximum of ₹1000 per applicant.
The applicant needs to have clear homestead land title for applying for a loan under this scheme and must invest a minimum of 10% of the loan amount as margin money, either in cash, kind or labour.
Housing aid has emerged as a significant political battleground between the BJP and BJD, with both parties vigorously showcasing their achievements to showcase their support. Currently, people in villages get housing aid under the central scheme Pradhan Mantri Awaas Yojana (Grameen) as well as the state’s Biju Pucca Ghar Yojana, Pucca Ghar Yojana (Mining) and Nirman Shramik Pucca Ghar Yojana. Official sources said that a total of 30.13 lakh houses have been built under these schemes.
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