The government on Tuesday eased carpet area restrictions under the Pradhan Mantri Awas Yojana (PMAY), which will allow more home-buyers to be eligible for interest subsidy.

Current rules restrict the subsidy eligibility to buyers purchasing homes having a maximum carpet area. It has now been enhanced to 160 sq m from 120 sq m for Middle Income Group-I (MIG-I), while it has been increased to 200 sq m from 150 sq m in case of MIG-II as per a release from the housing ministry.

The new rules will be effective from January 1, 2017, the date on which the scheme became operational, the ministry said in the release.

"The enhancements will now enable more MIG customers to qualify for subsidy and avail the benefits provided under the ambitious flagship mission of Pradhan Mantri Awas Yojana-Urban (PMAY-U)," the release said.

In November, the cabinet cleared the increase in carpet area limit to 150 sq. m from 110 sq. m for households earning between ₹12 lac to ₹18 lac a year and to 120 sq. m from 90 sq. m for households earning between ₹6 lac to ₹12 lac a year.