Question : ENHANCEMENT OF FUNDS FOR CONSTRUCTION OF HOUSES UNDER IAY



(a) whether the Government has taken any decision to enhance grant for construction of dwelling units under Indira Awas Yojana (IAY);

(b) if so, the details thereof;

(c) whether the proposal from Gram Panchayat is essential for allotment of houses under IAY; and

(d) if so, the details thereof ?

Answer given by the minister


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.