Finance Minister Nirmala Sitharman on Thursday announced that the Credit Linked Subsidy Scheme (CLSS) for middle income groups to buy affordable housing units will be extended till March 31, 2021.
The scheme was last extended till March 2020.
Addressing the media here, Sitharaman said that the extension would benefit 2.5 lakh middle income families. So far, the scheme has benefitted 3.3 lakh middle class families, she added.
The Finance Minister said that it will lead to an investment of Rs 70,000 crore in the housing sector and also create jobs.
As per the government, the decision will stimulate demand for steel, cement, transport and other construction materials.
The decision is part of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.
Further, the Centre will also launch a scheme under the Pradhan Mantri Awas Yojana for migrant labour and urban poor to building affordable rental housing facilities for them.
Under the scheme, government funded housing in cities will be converting to affordable rental housing complexes under the public private partnership mode.
Further, the government will also incentivise manufacturing units, industries, institutions, associations to develop affordable rental housing complexes on their private land and operate them.
( With inputs from IANS )