New Delhi, Feb 29 (UNI) The Union Budget for 2008-09 has increased the subsidy for constructing houses for the poor by Rs 10,000 in plain areas and by Rs 11000 in hill areas under the Indira Awas Yojna (IAY).
With these increases, the total subsidy for plain areas would be Rs 35000 and for hill areas Rs 38,500 Housing for the poor is one of the six elements of Bharat Nirman and is implemented through the Indira Awas Yojna which is part of the national reconstruction mission.
Presenting the budget, Finance Minister P Chidambaram today said the decision to raise the subsidy had been taken in view of the increase in the cost of construction.
The subsidy for upgradation of houses will also be increased -- from Rs 12,500 to Rs 15,000.
Since a beneficiary would still be needing own funds to complete the house, public sector banks will be advised to include IAY houses under differential rate of interest (DRI) scheme and lend up to Rs 20,000 per unit at the rate of four per cent.
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