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Government approves construction of 5.45 lakh houses under Pradhan Mantri Awas Yojana

Infra News - Published on Wed, 03 Jan 2018

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India Infoline News Service reported that the Ministry of Housing and Urban Affairs approved the construction of an additional 5,45,090 houses under the Pradhan Mantri Awas Yojana (Urban) scheme. The additional construction is expected to require an investment of INR 31,003 crore. Central assistance for the new construction would be INR 8,107 crore. This takes the total homes sanctioned under PMAY(U) to 36,00,819.

Andhra Pradesh and Uttar Pradesh have got the nod for constructing 1,42,447 and 1,20,645 affordable houses respectively, while Karnataka and Madhya Pradesh have been sanctioned 1,18,646 and 1,00,341 affordable houses.

Launched on June 25, 2015, the aim of PMAY is to help achieve the goal of ‘Housing for All’ by 2022. The scheme aims to do this by offering Credit Linked Interest Subsidy (CLIS), which will substantially reduce EMI for the beneficiaries of the scheme. It is our belief that stocks like GIC Housing Finance, DHFL and HUDCO would benefit from the PMAY scheme. GIC Housing Finance and DHFL would benefit, as both companies focus on lending to lower income group borrowers. Both GIC Housing Finance and DHFL are likely to grow their housing loan books at 25% and 21% CAGR respectively over FY17-19E. HUDCO is likely to benefit, as its Housing finance portfolio is expected to grow at 16.5% CAGR over FY17-19E.

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Posted By : Nanda Koijam on Wed, 03 Jan 2018
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