Housing for All on fast track: 5 points to note - Yahoo India Finance

1 of 1

https://in.finance.yahoo.com/news/housing-fast-track-5-points-140315208...

Tue, 1 Dec, 2015 9:29AM - Indian Markets close in 6 hrs and 1 min

Housing for All on fast track: 5 points to note

Simplus Information Services Thu 26 Nov, 2015 7:33 PM IST

The Modi government announced the most ambitious Housing for All (HFA) scheme in India this year. It will efficiently
give a boost to the Indian economy.
The money allotted for building a single house is Rs 70,000 in the plains and Rs 75,000 for hilly areas, under the Indira
Awas Yojna. This massive project can have an impact on the income margin, employment opportunities, steel and cement
production, according to the India-Ratings report.
Employment and Income: The cost of construction by FY16-FY22 is estimated to be around Rs 2,14,286 crore per
annum. The gross value added (GVA) to construction sector will surely shoot up more than Rs 2 crore, according to the
latest reports. If the construction activity increases, theres even going to be an increase in labour demand significantly.
The employment rate is also speculated to increase by 0.16 million man years per annum.
Infrastructural services: The Housing for All initiative could also be a stress factor for local bodies. The expansion in
the construction sector will demand multiple infrastructural services. It will create the need for basic facilities such as
sewage, drinking water, sanitation, solid waste, city transport etc. The municipal authorities to tap bond market in order
to match up to the expenses.
Tax incentives: It also aims at providing tax incentives to those who are willing to rent out their properties. Further, the
National Urban Rental Policy be beneficial to institutional investors who are planning to set up large-scale rental housing
projects.
Steel and Cement production: You cannot ignore the fact that the demand for seven storey residential houses has
been in great demand these days. In the recent past, the cement production has been 270.32 million tonnes in FY15. It
has also been estimated that there is going be an additional cement demand by 13.6%. This can give the HFA an
opportunity to increase the production by 51.62 million tonnes and 258.12 million tonnes respectively during FY16-FY22.
Fiscal Impact: The overall fiscal impact is estimated to be 0.16% of GDP in FY16. The Housing for All schemes will affect
the indirect tax revenue up to Rs 12,848 crore due to the increase in steel and cement production.

12/1/2015 9:30 AM