Good News! Affordable Housing to the Low-Income Groups will be Provided Soon

Legal agreements were signed by the Government of India, Government of Tamil Nadu, and World Bank to provide affordable housing to the low-income group in the state of Tamil Nadu. There were two projects covered under the legal agreements, the first one is the First Tamil Nadu Housing Sector Strengthening Programme worth $200 million and the second is the Tamil Nadu Housing and Habitat Development Project.

First Tamil Nadu Housing Sector Strengthening Programme

It will support the government by increasing the availability of affordable housing by shifting the role of the state to a house enabler rather than a housing provider. It will encourage the private sector to participate in the low housing sector. The scheme also called for easing the process for private players by reducing the regulatory barriers

According to the statistics, nearly half of Tamil Nadu’s population is urban and is expected to increase to 63% by 2030 while 6 million people which are approximately 16.6 of the total urban population reside in slums.

Tamil Nadu Housing and Habitat Development Project

The $50 million project will help in innovation and will also strengthen the housing institutions within the state. It will also provide $35 million equity to the newly formed Tamil Nadu Shelter Fund (TNSF).

The TNSF will use the funds to earn profits from areas where there are high returns on housing and will invest the amount earned in the affordable housing scheme.

The government hopes that both of these schemes will help sort out the problem. The state has been facing the problem for years and with the rise in the migrant population from the other states the problem has only increased. The housing model could serve as a blueprint for the other states.