BENGALURU: In a significant move aimed at aiding the urban poor, the state government has decided to reduce the beneficiary share of the Pradhana Mantri Awaas Yojane by Rs 3.5 lakh. Currently, beneficiaries contribute Rs 4.5 lakh, while the state and Centre contribute Rs 1.5 lakh each. The cost of a house under the scheme is Rs 7.5 lakh.
The state cabinet approved the reduction, lowering the beneficiary share to just Rs 1 lakh, with the state covering the remaining Rs 3.5 lakh.
Housing minister BZ Zameer Ahmed Khan said this decision was prompted by the realisation that beneficiaries were struggling with the hefty contribution, as evidenced by the delay in completing the 1.8 lakh houses sanctioned between 2015 and 2018.
The minister said that the centre gives Rs 1.5 lakh subsidy per house under the PMAY but collects Rs 1.32 lakh from each house by way of GST at 18%. “It is like giving from one hand and snatching with another. So, we are going to write to the Centre asking bit to waive GST being levied on housing schemes,” he said.
Khan said there will be a burden of Rs 5,500 crore on the state exchequer due to this move, to be released in instalments starting with Rs 500 crore. Approximately 48,763 houses are expected to be completed in February if the initial instalment is released promptly.
