Housing assistance under IAY raised: Cabinet

New Delhi, Mar 20 (UNI) The Centre today enhanced the unit assistance for an Indira Awaas Yojna (IAY) house from Rs 25,000 to Rs 35,000 in plain areas and from Rs 27,500 to Rs 38,500 in hilly/difficult areas.

The unit assistance for upgradation of houses under the scheme has been raised from Rs 12,500 to Rs 15,000 across the country.

The decision was taken at a Cabinet meeting chaired by Prime Minister Manmohan Singh, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

The revised rates of unit assistance applicable in respect of new IAY houses sanctioned after April 1.

There would be a provision for additional outlay of Rs 350 crore for Rural Housing during 2008-09 to maintain physical targets at least at the level of the current year 2007-08.

The government would advise public sector banks to include IAY houses under the differential rate of interest (DRI) scheme for lending up to Rs 20,000 per unit at an interest rate of 4 per cent.

This would provide the requisite assistance needed for constructing better quality IAY houses.

UNI SN MSG RN2029