Govt to work with regulators for enhancing capital, reduce cost for affordable homes

The government of India will work with financial sector regulators to expand access to capital to finance affordable housing for the middle class and economically weaker sections in urban areas, finance minister Nirmala Sitharaman said in her budget speech.

"In 2022-23 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban. Rs 48,000 crore is allocated for this purpose," Sitharaman said.

The government will also work with state governments for reduction of time required for all land and construction related approvals, for promoting affordable housing for middle class and economically weaker Sections in urban areas.

Housing for all has been a key focus area for the Modi government especially in the rural areas. The finance minister's announcement means that housing in urban areas will also get a push. Developing housing has knock on effects to other sectors like steel, cement and consumption and is hence considered a key component to enhance economic growth.

Sitharaman said the government will work with financial sector regulators to expand access to capital along with reduction in cost of intermediation for affordable housing.