The Union Cabinet has approved the proposal of the Ministry of Rural Development to provide a quality and affordable house and also taking into account numerous requests from the stakeholders for increasing the unit cost, keeping in view the steep increase in cost of materials. The approval is as follows:
(i) Enhancement of unit assistance under the Indira Awaas Yojana (IAY) from Rs. 45,000/- to Rs. 70,000/- in plain areas and from Rs. 48,500/- to Rs. 75,000/- in hilly/difficult/LAP district;
(ii) Enhancement of unit assistance provided for homestead site to rural Below Poverty Line (BPL) households who have neither agricultural land nor a house site for purchase/acquisition of a homestead site from Rs.10,000/- to Rs.20,000/-. This was a major point in the Agreement between Govt. of India and Jan Satyagraha on 11th October 2012 at Agra.
The IAY is a flagship scheme of the Ministry of Rural Development and aims at addressing rural housing issues by providing grant for construction / upgradation of dwelling units of BPL families especially giving priority to Scheduled Castes/Scheduled Tribes, freed bonded labourers and physically challenged persons with financial assistance of Rs. 45,000/- in plain areas and Rs. 48,500/- in hilly /difficult areas.