Apr 27, 2017 / Realty.com
CHENNAI: Giving a boost to the affordable housing sector in Tamil Nadu, the Centre has sanctioned under the Pradhan Mantri Awas Yojana (Urban) 24,576 houses for the state, the second highest number of affordable houses in the latest allocation after Madhya Pradesh with 57,131 houses.
The housing and urban poverty alleviation (HUPA) ministry has now approved construction of 18.75 lakh houses for economically weaker sections (EWS) in 2,151 cities and towns since 2015.
Developers and real estate experts have welcomed the move saying it would give an impetus to the sector, but stressed the need for engaging the private sector and providing subsidy for the success of the ambitious scheme. Kanchana Krishnan, director of Knight Frank (India) Pvt. Ltd, Chennai, said there was a gigantic demand for affordable housing and the move was very encouraging.
“This apart, the Tamil Nadu government has accorded extra FSI [floor space index] for projects catering to the EWS, lower and middle income group segment and it is certainly a major shot in the arm for Chennai’s real estate industry.” People residing on the peripheries could particularly benefit. Chennai Real Estates Agents Association’s Chandrasekar Kaliamurthy said “The scheme is expected to get subsidy in the near future.” However, he pointed out, only contractors, not developers, may be part of the construction projects under the programme in the state.
Tamil Nadu is in second position in the overall list of states with more than 2.52 lakh houses with a total project cost of 9,112 crore.