Minuscule allocations neutral for housing sector: CRISIL

The allocation of Rs 12.7 billion for the Rajiv Awaas Yojana under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to provide property rights to slum dwellers will give a boost to slum redevelopment programmes, said the leading credit rating agency Crisil.

Additionally, the budget has allocated Rs 10 billion for housing and urban poverty alleviation. The extension given to the scheme offering 1% interest subvention on housing loans up to Rs 1 million (where the cost of the house does not exceed Rs 2 million) will help sustain the boost to affordable housing.

On the rural front, Rs 100 billion has been allocated under the Indira Awaas Yojana scheme, which will help in reducing the prevailing shortage in rural housing. However, these allocations will not have a major impact on the organised housing sector.