HUDCO, other housing stocks jump 9% after govt greenlights 3 crore additional houses under PMAY

Shares of housing finance and infrastructure project firms surged up to 9% in Tuesday’s trade on the BSE after the newly formed NDA government, in its first cabinet meeting on Monday, decided to provide assistance to 3 crore additional rural and urban households for the construction of houses, to meet the housing requirements arising out of the increase in the number of eligible families.

“A boost for ‘Ease of Living’ and dignity for crores of Indians! The cabinet has decided to further expand the Pradhan Mantri Awas Yojana and construct 3 crore additional rural and urban houses. This decision underscores the government’s commitment to addressing the housing needs of our nation and ensuring that every citizen leads a better quality of life. The expansion of PMAY also highlights our government’s commitment to inclusive growth and social welfare,” said Prime Minister Narendra Modi.

Following this development, Home First Finance shares surged 9.3%, while Aavas Financiers rallied 9%. Shares of HUDCO and NBCC also gained over 8% each.

Under PMAY, a total of 4.21 crore houses have been completed for eligible poor families under the housing schemes in the last 10 years.

The NDA government’s cabinet meeting comes a day after Narendra Modi was sworn in as the Prime Minister of India for the third time. Modi took the oath in a grand ceremony at the Rashtrapati Bhavan.About the scheme:The government implemented the Pradhan Mantri Awas Yojana to assist eligible rural and urban households in constructing houses with basic amenities.All the houses constructed under PMAY are provided with other basic amenities including household toilets, LPG connection, electricity connection, and functional household tap connection through convergence with other central government and state government schemes.

During the Interim Budget in February, Finance Minister Nirmala Sitharaman announced the construction of two crore more houses under the scheme in the next five years.

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