Unveiling the 2nd tranche of massive Rs 20 lakh crore package, Finance Minister Nirmala Sitharaman has announced to extend the Credit Linked Subsidy Scheme (CLSS) in the affordable housing from 31st March 2020 to 31st March 2021. While announcing the CLSS scheme extension Sitharaman said that it will help the lowest spectrum group of the middle class having an annual income of Rs 6 lakh to Rs 18 lakh. For this extension, the Government of India will pump Rs 70,000 crore additional allocation for the scheme from the Rs 20 lakh crore stimulus package.

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While announcing the extension Nirmala Sitharaman said, "The CLSS scheme in the affordable housing sector has been extended from March 31st, 2020 to 31st March 2021. This move is going to help the lowest middle-class spectrum who has an annual income of Rs 6 lakh to Rs 18 lakh."

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Sitharaman added that it will help the subsidiary industries of real estate like cement, steel, etc as affordable housing will boost the real esatte industry. She went on to add that this trickle down of the benefit to the real estate and its allied industries will enable new job creation as well.

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Credit Linked Subsidy Scheme to the middle income group with Rs 6 lakh to Rs 18 lakh per annum was opeationalised from May 2017. This scheme till date has benefited around 3.3 lakh families. AFter announcing the extension in CLSS scheme, FM Sitharaman expected the benefit to further reach at additional 2.5 lakh families. she also expected that this CLSS extensiuon will stimulate demand in steel, cement, tramnsport and other construction materials.

Hailing the extension of CLSS for one moe year; Anuj Puri, Chairman – ANAROCK Property Consultants said, "This will help push demand for affordable housing.Ever since its implementation in 2017, the CLSS scheme has already benefitted over 3.3 lakh families and the extension will further aid many more families to avail housing under this scheme. As a ripple effect of increased demand for affordable housing, it will positively push demand for raw materials like cement, steel, transport and other construction materials." Puri went on to add that government’s push for affordable housing has been unmistakeable in the last six years. Its Housing for All by 2022 project has already resulted in multiple sops and incentives. As a consequence, there has been a significant increase in activity in affordable segment over the last few years.