Managing the high level of urbanisation has made it imperative for the government to resort to smart concepts and solutions. For India, this has resulted in the identification and planning of 100 smart cities.
The Union Budget 2017-18 was announced with the theme of Transform, Energise and Clean India (TEC), was largely geared towards rural growth, infrastructure, and poverty alleviation, with a huge impetus to affordable housing. The thrust on affordable housing renews the government’s vision of ‘Housing for All by 2022’, giving a cheer for the housing segment.
To meet the housing demand in the country, M Venkaiah Naidu, Union Housing and Urban Poverty Alleviation (HUPA) Minister, has pitched for promoting alternative technologies in place of conventional construction methods. He has also called for speedy, safe, and sustainable construction to accomplish the government’s mission of 'Housing to All' by 2022.
Infrastructure encompasses the whole spectrum of vital services such as roads, railways, civil aviation, shipping, power generation and transmission, telecommunications, postal facilities and urban development. Adequate infrastructure facilities are an absolute necessity for rapid achievement of sustainable economic growth.
The government recently announced that interest rates of 3 per cent would be applicable on loans of up to Rs 12 lakh and 4 per cent on loans of up to Rs 9 lakh, under the Pradhan Mantri Awas Yojana (PMAY). Now, two new income categories can avail higher loans with interest subsidies. The Budget should give more clarity on the actual definition of beneficiaries who can avail of these benefits.
The Budget that was being touted as a make-or-break one for the future of India, and the government made some big announcements on the infrastructure front and also on beneficial changes to the affordable housing segment.
The year 2017 seems like the year for the affordable housing segment, and there should be no looking back for developers and the government hereon. The ‘infrastructure status’ will certainly open up new financial avenues for developers.