Union Govt hiked monetary assistance by 25,000 to Indira Awas Yojana

The Central Government decided to transfer its share of funding directly to the state governments instead allocating to the districts. The decision came out after the center notified the new guidelines for Indira Awas Yojana (IAY).

Speaking to the reporters in New Delhi the Rural Development Minister Mr. Jairam Ramesh said, "The cost of a 250 sq ft housing unit is now Rs 70,000 as against Rs 45,000 earlier. For Naxal affected districts and hill states the per unit cost has been hiked to Rs 75,000 from Rs 48,500".

He also said the Centre has also doubled the assistance given to states for procuring a homestead site for the landless poor from Rs 10,000 to Rs 20,000. 

Instructions are given to the States to give "overriding priority" in allocation of IAY houses to freed bonded labourers, freed manual scavengers and particularly vulnerable tribal groups, Ramesh said. For the IAY, the Centre and the states share is fixed at 75:25 ratio. Noting that only 21 per cent houses built under IAY had toilets, Ramesh said under the revised guidelines, building a toilet along with the IAY unit has been made mandatory. 

The funds will be available to give at various stages but, "The last instalment under the scheme would not be released until a toilet is built along with the house," he said. Another modification to the scheme is fixing targets for SC/ST and minority communities which would be proportionate to the population in respective states.