Britains Department for International Development (DFID) on Monday launched a new affordable housing scheme in partnership with the National Housing Bank (NHB). The scheme aims to address the shortage in low-cost urban housing through targeted interventions and innovative funding models.
The project will involve a commitment of up to £50 million (Rs 500 crore) over a seven-year period (2013 2019). Of this,£40 million (Rs 400 crore) would be given as a concessional loan to the NHB to finance the construction of affordable housing units and loans to low-income household. The remaining £10 million (Rs 100 crore) would be disbursed for technical assistance to strengthen systems and policies for the sector such as green technologies,low-cost rental housing,and the upgradation of slums.
Launching the scheme,Alan Duncan UK Minister of State for International Development,said: I am delighted to announce the launch of the affordable housing project a great example of DFIDs engagement with Indias private sector. UK loans to small and medium developers will help build affordable homes for at least 17,000 low income households. The project will also finance mortgages for low-income families.
The programme will operate in the eight low-income states of Rajasthan,Madhya Pradesh,Orissa,Uttar Pradesh,Bihar,West Bengal,Chhattisgarh and Jharkhand.
Rajasthan would be the first state to receive funding under the programme for its ongoing initiatives to deliver affordable housing.
We consider this a very valuable partnership and a very important project to tackle and address housing shortage with focus on low income states of India. Together with DFID,we have conceived this approach that will look at issues on both demand and supply sides in an integrated manner, said RV Verma,chairman and managing director,NHB.