In a Major Development in Indian Real Estate - A New Home Loan Initiative Will be Revealed by September 2023

In a groundbreaking move aimed at improving the living conditions of middle-class families residing in leased housing, chawls/tenements, and illegal colonies across Indian cities, Prime Minister Narendra Modi unveiled a transformative initiative during his highly anticipated Independence Day address.

In a recent announcement, Hardeep Puri, the Union Minister of Housing and Urban Affairs, revealed that a comprehensive plan aimed at alleviating the burden of interest payments on mortgages for city residents is set to be unveiled in September.

During a recent news conference, Puri revealed that the intricate details of the plan are currently being meticulously finalised. In a momentous announcement on Independence Day, the esteemed Prime Minister unveiled an ambitious housing loan initiative tailored specifically for urban dwellers. 

Pradhan Mantri Awas Yojana (Urban), first introduced in 2015, is being carried out by the Ministry of Housing and Urban Affairs. The deadline for three of the four pillars of the project has been extended until December 31, 2024. These pillars include beneficiary-led construction, affordable housing in collaboration, and in-situ slum remediation. The fourth pillar, the credit-linked subsidy plan, did not have its funding for subsidised interest on house loans for eligible borrowers extended through March 31, 2022.

As of July 31st, the ministry estimates that 76.02 lakh people have taken possession of the dwellings they were promised under the PMAY (Urban) programme.

Report of the Amitabh Kant Committee on Landmark DevelopmentsThe housing minister has said in a letter to the chief ministers that he has requested them execute the recommendations made in the Amitabh Kant committee's report on legacy real estate projects."I have written to the chief ministers to implement the recommendations," he said to reporters.

Union Housing and Urban Affairs Secretary Manoj Joshi elaborated on the panel's suggestions, saying that the group has suggested separating the registration of projects from the collection of fees from builders.

"If construction of flats is almost complete but homebuyers have not been handed over the housing units due to pending occupancy certificate or no objection certificates from the authorities concerned, they should be allowed to take possession," Joshi told reporters.

The committee has suggested using RERA to kickstart the final stages of these projects. "It should appoint an administrator to complete the projects, collect the remaining amount from buyers and the builders, and ensure that the project is completed," he added, adding that the third group involves revisions to the bankruptcy legislation.

For example, "it has proposed that the resolution professional should be allowed to register and transfer properties in the buyers' name without the developer coming into the picture," he said. We have discussed the committee's proposals with a number of different governments and bodies, and have received encouraging feedback. Joshi informed the media that the department had "high hopes" for the resolution of other pending cases.

The Smart City MovementAccording to Puri, all of the smart city initiatives would be finished by June of 2022. All smart city initiatives, he assured reporters, will wrap up by 2024.

"Prime Minister eBus Service"

The minister also said that the PM-eBus Sewa project, which would provide service similar to the Metro, will be implemented within the next five to six months.The minister told reporters that under the plan, 10,000 electric buses will be delivered to 169 communities using a public-private partnership (PPP) model.

Housing and Urban Development Secretary Manoj Joshi said that the programme will be implemented in 169 cities, with states submitting their bids by September 30. He said that the rules had been released two days ago.Joshi claims that the ticket sales process would be fully automated.