MINISTER OF RURAL DEVELOPMENT
(DR. RAGHUVANSH PRASAD SINGH)
(a) & (b): The Finance Minister during the Budget Speech on 29.2.2008, announced in
the Parliament that he proposed to enhance the subsidy per unit in respect of new IAY
houses sanctioned after April 1, 2008, from Rs. 25,000/- to Rs. 35,000/- in plain areas
and from Rs. 27,500/- to Rs. 38,500/- in hilly/difficult areas. He also announced that the
subsidy for upgradation of houses will be increased from Rs. 12,500 to Rs. 15,000/-.
(c) & (d): Indira Awaas Yojana (IAY) is an allocation based scheme. On the basis of
State-wise and District-wise allocations made by the Central Government, District Rural
Development Agencies (DRDAs)/Zilla Parishads (ZPs) decide Panchayat-wise number of
houses to be constructed under the scheme and intimate the same to the concerned Gram
Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to
the target allotted, from the BPL lists / Permanent IAY Waitlists.