New Delhi, July 4: Borrowers of home loans up to Rs 15 lakh will continue to get one per cent interest subsidy from the government in this fiscal provided the cost of the house does not exceed Rs 25 lakh.
The extension of the home loan subsidy was approved by the cabinet yesterday The move will cost the exchequer Rs 400 crore.
"When interest rates have risen, even a one per cent relief is a relief for the middle and lower middle classes," home minister P. Chidambaram told reporters here in a media briefing on last night's cabinet decision.
All house loans taken in 2012-13 will get this benefit.
The subsidy limit for a borrower will be Rs 14,912 for a loan of Rs 15 lakh and Rs 9,925 for a loan of Rs 10 lakh.
Chidambaram said a large number of people had benefited from the one per cent interest subvention and "whoever borrows now will get the benefit of one per cent".
At present, interest rates on home loans vary between 10.5 per cent and 13 per cent. SBI charges a 10.75 per cent interest on loans up to Rs 30 lakh.
The cabinet has approved the setting up of the country's fifth petrochemical hub in Tamil Nadu, hoping to attract Rs 92,160 crore-investment. The hub will come up in the Cuddalore and Nagapattinam districts covering 256.83 sq km.
"A total investment of about Rs 92,160 crore is expected in the hub, which includes a committed investment of Rs 22,160 crore," Chidambaram said.
The government will provide financial support of up to Rs 50 crore for setting up clusters that manufacture specific kinds of electronic devices. The scheme targets to boost local manufacturing of electronics products to reduce dependence on imports.
Meanwhile, state-owned telecom consultancy firm TCIL has got the approval to acquire a 60 per cent stake of TCIL Saudi Co Ltd from Nesma Group to make it a wholly owned subsidiary.
TCIL will acquire the stake for Rs 2.8 crore.
The government has also approved a proposal to reimburse the freight on the distribution of decontrolled phosphatic and potassic (PandK) fertilisers. PandK fertilisers have been brought under the nutrient-based subsidy policy as on April 1, 2010.