Indian govt says it is pro-poor, claims it will build affordable houses below Rs 5 lakh

Indian government said it was also committed to provide affordable housing to people apart from building smart cities.

Road and Transport Minister Nitin Gadkari said that the government will build houses below Rs 5 lakh.

"Low cost housing is very important. The biggest impediment is that in our country there are only one per cent people who can buy houses above Rs 10 lakh. If we make available houses at a cost below Rs 5 lakh, 30 per cent people can buy that," Road Transport Highways and Shipping Minister Gadkari said at Assocham's 'Smart City' summit here.

One such experiment is underway in Nagpur where a house is being constructed using 70 per cent fly ash on steel structure.

"The construction cost of the building comes at Rs 1000 a square feet. We will be able to provide 450 square feet house in Rs 5 lakh. We are installing solar system in that besides furniture including bed made of fly ash,” he said.

"A subsidy of Rs 1.5 lakh would be given on it. The cost of the house will be Rs 3.5 lakh and loan will be available for 7 to 7.5 per cent interest rate...even a poor can buy that," said Gadkari.

He also urged the investors to come forward to set up smart cities under PPP(public private partnership), with the government ready to offer land, besides clearances in a transparent manner.

(Image: Reuters)