Government Plans To Pay Rents For The Urban Poor In The Smart Cities, Says Report

The Centre is on the verge of rolling out a Rs 2,700-crore welfare scheme in 100 smart cities to provide homes to the poor in the urban areas.

The policy which was being worked on since last 3 years is likely to be unveiled in 2017-18 financial year in the smart cities under which rent vouchers will be given to people below poverty line(BPL), reported Economic Times.

The scheme which is expected to cost Rs 2,713 every year is aimed directly at the urban poor and helping the migrant population. It would involve distribution of rent vouchers by urban local bodies, the report adds.

After receiving the vouchers, the tenants would give it to the landowners, who in turn would be able to redeem them at any citizen service bureau.

If the rent is higher than the value of rent voucher,the difference in the amount of will be paid to the landowner by the tenant in cash.

Urban local body will fix the value of rent voucher on the basis of class or size of the dwelling unit and the prevalent rent in the city. The government may also implement direct benefit transfer in this voucher scheme.

Speaking to the newspaper, a senior official said that the rental voucher scheme is being looked at as a means to complement the 'Prime Minister Housing for All' scheme.

Also, benami properties for construction of affordable homes will be monetised by the government to address the housing shortage.

Last year, as many as 2,508 cities in 26 states were selected under Pradhan Mantri Awas Yojana for providing affordable houses to the urban poor.

Urban Development Minister M Venkaiah Naidu had said that as per the scheme guidelines, the houses under the PMAY (U) mission should be designed and constructed to meet the requirement of structural safety against earthquakes, flood, cyclone, landslide etc. conforming to the National Building Code and other relevant Bureau of Indian Standards Codes.