Odisha government announces New Rural ‘Mo Ghara’ housing scheme

Odisha government announces  New Rural ‘Mo Ghara’ housing scheme

The scheme, whose coincided with the completion of fourth year in fifth term of Mr. Patnaik, will cover all such families who were left out in the existing housing schemes either due to stringent eligibility criteria or insufficient allocation, and those who had received housing assistance of smaller amount in the past and now want to upgrade or expand their houses.

The State Cabinet chaired by Odisha CM gave its consent to the credit-linked housing scheme which is fully funded from State budget. The applications for availing loan will open from June 15, 2023.

“Under the scheme, a beneficiary can avail housing loan up to Rs. 3 lakh which can be repaid in 10 years excluding one year moratorium period in easy installments. They can opt for one of the four slabs of loan amount – Rs. 1 lakh, Rs. 1.5 lakh, Rs. 2 lakh and Rs. 3 lakh,” says the Cabinet note.

The family which is staying in kutcha (thatched) house or one pucca room with concrete roof would be eligible for the loan. Those having monthly income below ₹25,000 and who have availed housing assistance of ₹70,000 or below in the past would be considered for loan under ‘Mo Ghara’ scheme.

“The State Government will release capital subsidy to the loan account of the beneficiaries on completion of the house. Enhanced capital subsidy will be available to vulnerable categories scheduled caste and scheduled tribe or families led by persons living with disability,” says the scheme.

The State government would pay highest ₹60,000 subsidy for ₹3 lakh loan slab while vulnerable groups would get subsidy of ₹70,000.

Banks have been asked not to charge any processing fee from the beneficiary for sanction of the loan. In order to further reduce the financial burden for beneficiaries, the registration fee and stamp duties required during mortgage title deed have been waived off by the State government.

The Naveen Patnaik government had earlier promised to convert all left out kutcha houses into pucca ones. Housing for rural households remained a key poll plank for political parties. Odisha government is now implementing Biju Pucca Ghar Yojna (BPGY) in addition to Centre’s Prime Ministers Awas Yojna – Gramin.

The State government had started using logo of the BPGY in all housing schemes. As Opposition Bharatiya Janata Party opposed the move saying BJD government running away taking credit of housing schemes by using own logo, the Union Rural Development Ministry issued instruction not to use the logo.