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Project Name Housing For All Project
Country The Republic of India
Sector Social Infrastructure
Concept Approval Date 25 February 2021
Proposed Loan Amount USD 500 million
Borrower The Republic of India
Implementation Agency Ministry of Housing and Urban Affairs (MoHUA)
Project Context
Urban population in India has been growing steadily. Urban population as percentage of total population increased from 27.67% in the year 2000 to 34.47% in the year 2019. An increase in the urban population and rapid migration of population from rural areas to urban centers, has led to poor living conditions, especially for the urban poor. Provision of urban housing has not kept pace with the growth in urban population, and as a result many urban poor are forced to live in slum areas and informal settlements with limited or non-existent access to basic amenities such as toilets, safe drinking water, electricity, and cooking gas. The Project is important to address the twin issues of availability and affordability of housing in urban areas.
Project Objective
The Project aims to support providing government assistance for provisioning of all-weather houses with access to toilet, water supply, electricity, cooking gas, and other civic amenities to eligible beneficiary families in urban areas. By providing housing with access to civic amenities, the Project will improve living conditions and quality of life of the urban poor.
Project Description
The proposed Project will be a sovereign Sustainable Development Loan (SDL) of USD 1,500 million (Tranche 1 of USD 500 million) to support Government of India’s Pradhan Mantri Awas Yojana (Urban) (PMAY-U) scheme. Activities to be financed by the Project are:
(i) Beneficiary-led Individual House Construction or Enhancement (BLC): Direct central assistance of INR 1,50,000 is provided to families belonging to economically weaker section (EWS) households (having annual income of up to INR 300,000) to either construct a new house or enhance the existing house on their own.
(ii) Credit-Linked Subsidy Scheme (CLSS): Interest subsidy is provided to EWS, low-income group and middle-income group households on loans availed for construction of new homes or renovation of existing homes.