August 20, 2014 7:48 PM

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Government to bring a blueprint of affordable housing policy

The government will soon be coming out with a blueprint of its affordable housing policy. Addressing a realty summit in Mumbai today, Financial Services Secretary G S Sandhu said, the Centre and the states, financial institutions, developers and local bodies are important stakeholders who will have to play their role in making the proposed initiative a success. He added, the move to liberalise the taxation regime for the real estate investment trusts is a "game changer" because smaller, retail investors will get an opportunity to participate in the sector.Earlier, addressing the same gathering, RBI deputy governor S S Mundra said housing shortage is very severe among the weaker sections. He pointed out a RBI internal panel report which says that over 58 per cent of people from the economically weaker sections and over 39 percent from the low income groups do not have access to housing.Meanwhile, Mr. Sandhu today also said that the government will soon announce a policy to make finance cheaper for weaker sections of the society. He further said, the government will soon expand the eligibility cap for the 5 per cent interest subvention scheme to Rs 5 lakh from the current Rs 1 lakh. The Secretary added that the government has to ensure that finance is available at affordable prices and conceded that commercial banks have a limitation due to cost of funds. Under the subvention scheme, the government shares the interest burden on a loan for the particular target segment and such schemes exist of a slew of sectors, including the agriculture.

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