Modi government's mega plan: Pay-back scheme on steel homes! Why this could be a gamechanger

In a bid to realise its "housing for all" target by 2022, Prime Minister Narendra Modi-led Union government is working on a plan that could be gamechanger in providing affordable housing to every citizen of the country. The government is planning to promote construction of steel homes and for this, it has started talks with several states, reports Zee Business TV. 

The steel homes are said to be cheaper than traditional houses and take less time in construction. More interestingly, the report says, Modi government would come up with a payback scheme to encourage construction of steel homes. 

According to the report, states in the North East have shown interest in the steel homes plan. The government has started talks with Assam and Arunachal Pradesh, while Chhatisgarh and Uttarakhand have also shown interest in the project. 

What is the steel home plan and payback policy
In contrast to the traditional homes, the government plans to promote houses built on steel as the major component with the use of a new technology. This will reduce construction time, and expectedly increase affordability.

While promoting steel homes, the government also plans to give some benefit to consumers. Under this, consumers will be encouraged to build homes built with steel as the major component. Later, if the consumer wishes to shift to a traditional house or to a new house, he/she can sell the steel back to the government at 50% or above of the original cost. For this, the government, in consultation with the state government, will also set up places when steel can be sold. 

The steel home scheme would be initially launched as part of the Pradhan Mantri Awas Yojana (PMAY). 

The government will also create a nodal agency, which will increase awareness among the people about the new technology. 

With the steel homes scheme, the government aims to meet a number of targets, including housing for all by 2022 and 300 MT production of steel by 2030.

Watch this Zee Business video here:

Steel homes for less than Rs 2 lakh!
Union Minister Chaudhary Birender Singh had said last year that strong and affordable homes made of steel can easily be built at a nominal Rs 2 lakh under PMAY. 

"The allocation under PMAY is Rs 1.5 lakh, while the same for hilly states is Rs 1.6 lakh. Ministry of Rural Development assures tie-ups with banks for Rs 70,000 and this way the allocation will be over Rs 2 lakh. Homes primarily using steel could easily be made for Rs 2 lakh under it," PTI had quoted Singh as saying. 

"These homes will not only be cost-effective but quick to construct. We saw houses in Gangtok and deliberated also that if we use steel structures that can enhance their durability," he had further said while informing media about three years of initiatives and achievements of his ministry. 

New Steel Policy 2017
New Steel Policy, 2017 aspires to achieve 300MT of steel-making capacity by 2030. This would translate into an additional investment of Rs. 10 lakh Crore by 2030-31. The policy also seeks to increase consumption of steel and major segments are infrastructure, automobiles, and housing. It also seeks to increase per capita steel consumption to the level of 160 Kgs by 2030 from existing level of around 60 Kg.