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Centre Extends Subsidy for Middle Class in Rs 70,000 Crore Boost for Housing Sector

FM Nirmala Sitharaman announces second tranche of the economic package on Thursday.

FM Nirmala Sitharaman announces second tranche of the economic package on Thursday.

The credit-linked subsidy scheme for the middle class with an annual income of Rs 6 lakh to Rs 18 lakh has been extended till March 2021.

  • News18.com
  • Last Updated: May 14, 2020, 6:52 PM IST
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New Delhi: Finance Minister Nirmala Sitharman on Thursday announced a Rs 70,000-crore boost to housing sector by extending the subsidy scheme for affordable housing for the middle income group.

The credit-linked subsidy scheme for the middle class with an annual income of Rs 6 lakh to Rs 18 lakh was operationalised from May 2017 and extended up to March 2020.

She said the scheme is being extended by one year to benefit 2.5 lakh middle income families.

The move, she said, would provide relief to the housing and construction sectors by stimulating demand for steel, cement, transportation, and other construction-related materials and activities. She said it would also lead to creation of jobs.

The finance minister's announcement is likely to bring some cheer to a construction sector that has seen all activity come to a grinding halt as a result of the coronavirus lockdown.

Sitharaman also announced a Rs 5,000-crore special credit facility for street vendors by providing them with working capital of up to Rs 10,000, adding this would support 50 lakh street vendors.

For farmers, she announced a Rs 30,000-crore additional emergency working capital funding through the National Bank for Agriculture and Rural Development (NABARD).

NABARD will extend additional refinance support of Rs 30,000 crore for crop loan requirement of rural co-op banks and regional rural banks. This, she said, would benefit 3 crore farmers, mostly small and marginal.


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