Central Government takes various initiatives to control construction costs of affordable housing projects- (Press Information Bureau) (08 Aug 2022)

MANU/PIBU/3541/2022

Civil

Central Government has taken measures to control the rising prices of construction materials of affordable housing including Pradhan Mantri Awas Yojana - Urban (PMAY-U). In Union Budget 2021-22 and 2022-23, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and stainless steels. Export duty on iron ores / concentrates and iron ore pellets has been raised to 50% and 45% respectively. In addition, 15% export duty has been imposed on pig iron and several steel products. Moreover, to give relief to secondary and MSME sector steel industry engaged in housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications. Government has also taken steps to increase availability of iron and steel which, inter-alia, includes Mining and Mineral Policy reforms to ensure enhanced production and availability of iron ore.

Moreover, Central Government has been taking various initiatives to control construction costs of affordable housing projects including PMAY-U such as reduction in Goods and Service Tax (GST) on under-construction Affordable Housing projects from existing 8% to 1% without Input Tax Credit (ITC) and in case of other housing projects, 5% from existing 12% without ITC, increase in Priority Sector Lending for Affordable Housing Project from Rs. 28 lakh to Rs. 35 lakh in metros and from Rs. 20 lakh to Rs. 25 lakh in non-metros; Setup of Affordable Housing Fund in National Housing Bank.

Tags : INITIATIVES CONSTRUCTION COSTS HOUSING PROJECTS