To give a fillip to affordable rural housing, the National Bank for Agriculture and Rural Development (Nabard) is planning to raise ₹7,000 crore, which in turn will be deployed with a Ministry of Rural Development (MoRD) special purpose vehicle (SPV) that will undertake projects under the aegis of the Pradhan Mantri Awaas Yojana–Gramin (PMAY-G).
In view of the challenges facing affordable rural housing and in keeping with its rural development mandate, Nabard has initiated talks with MoRD for raising resources, said a senior official.
The official emphasised that as Nabard is owned by the government and has good asset quality, comfortable capitalisation levels and stable profitability, the institution will be able to raise resources at lower interest rates and on-lend the same to the MoRD SPV at a mark-up of just 50-60 basis points.
One basis point equals one-hundredth of a percentage point.
The PMAY-G aims to provide a pucca (permanent) house with basic amenities to all homeless households and those households living in kutcha (temporary) and dilapidated houses, by 2022.
Main objectiveThe immediate objective is to cover one crore such households in three years from 2016-17 to 2018-19.
The minimum size of the house under the Yojana is 25 square meters with a hygienic cooking space.
The unit assistance is ₹1.20 lakh in plains and ₹1.30 lakh in hilly States, difficult areas, and Integrated Action Plan (for select tribal and backward) districts.
The cost of unit assistance is shared between the Central and State governments in the ratio of 60:40 in the plains and 90:10 in the North-Eastern and Himalayan States.