Now Reading: MHADA: Land prices, bank credit leave 10,000-15,000 PMAY homes unallocated
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MHADA: Land prices, bank credit leave 10,000-15,000 PMAY homes unallocated
MHADA: Land prices, bank credit leave 10,000-15,000 PMAY homes unallocated
MHADA CEO Sanjeev Jaiswal said at the BRICS Friendship Cities conclave that high land costs and the inability of beneficiaries with irregular incomes to get bank loans have left 10,000-15,000 homes unallotted…
The Story in Brief
MHADA CEO Sanjeev Jaiswal said at the BRICS Friendship Cities conclave that high land costs and the inability of beneficiaries with irregular incomes to get bank loans have left 10,000-15,000 homes unallotted in the Mumbai Metropolitan Region. Of nearly 50,000 homes built under the Pradhan Mantri Awas Yojana in MMR, a fifth remain vacant because applicants cannot arrange financing, he said.
The PMAY subsidy of Rs 2.5 lakh is too small to bridge the gap between home prices of Rs 12-15 lakh and what low-income households can borrow. Many potential buyers work informally, lack stable income or credit scores, and are rejected by banks. The Times of India reports that around 3 lakh homes have been built across Maharashtra under the scheme.
The Indian Opinion
The usual charge of government inefficiency misses the point: MHADA has built the homes. The real bottleneck is the gap between a construction cost inflated by Mumbai land prices and the thin borrowing capacity of informal workers. Banks are not being heartless; they follow prudential norms. But a scheme that leaves a fifth of its houses empty is failing at the last mile. The question for policymakers is whether to subsidise land, relax lending rules, or both.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
