The Hindu : National : Indira Awas Yojana gets higher outlay

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Friday, Jul 09, 2004

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National

Indira Awas Yojana gets higher outlay

By Our Staff Correspondent

NEW DELHI, JULY 8. The allocation for the Indira Awas Yojana (IAY) - the main instrument to provide housing to the rural poor - has been increased in the Union Budget, announced by the Finance Minister, P.Chidambaram. He said more funds would be made available, if needed, from the expanded Plan outlay.

While the allocation for the scheme last year was Rs. 1,710 crore, this year it is proposed to go up to Rs. 2,247 crore. IAY is a credit-cum-subsidy scheme for rural households, ranging from Rs. 10,000 to Rs. 40,000.

Also, setting a higher a target of 250,000 rural housing units annually under the Golden Jubilee Rural Housing Finance Scheme - set up to complement IAY in 1997 - the Finance Minister said the National Housing Bank has offered to reduce the rate of refinance by 25 basis points this year and the Reserve Bank has agreed to revise the norms of re-payment for rural housing loans by banks, so that the instalments coincide with crop cycles. "A major impediment to credit for rural housing is absence of proper title to the land.

The West Bengal Government has made a law to implify the creation of security and it appears to me that the law deserves to be emulated by other States also,'' he said.

So far 10.26 lakh dwelling units have been financed but the numbers appear to have stagnated at 180,000 units per year in the past three years.

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