Budget 1997-98: Full Text
- A constraint on adding to the housing stock of the
country is the Urban Land (Ceiling and Regulation) Act,
1976. It is the intention of the government to move a
Bill for amending the Act in this session of Parliament.
- Indira Awas Yojana was launched to build houses for the
poor in rural areas. Housing finance companies provide
credit, but the bulk of such credit flows into the urban
and semi-urban areas. There are some rural housing credit
programmes but they lend meagre amounts upto Rs.10,000.
There is virtually no source of credit for the farmer who
wishes to build a modest house on his freehold land or to
improve or add to his old dwelling. This gap must be
filled. In consultation with the National Housing Bank
(NHB) and others, I have worked out a plan. Loans, upto
Rs.2 lakhs, will be given for building houses on freehold
land in rural areas at normal rates of interest, subject
to the borrower putting in one-third of the value of the
house. NHB has been requested to prepare a scheme in
which other organisations will also participate. The
Prime Minister will launch the scheme on August 15, 1997
and it is our goal to sanction 50,000 loans in the first
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