The Tamil Nadu government has approved the construction of 70,000 rural houses in the first phase of its Vetri Veedu housing scheme for the 2026-27 financial year, with priority for poor households living in huts, mud-walled homes and houses with unsafe roofs.
The approval was issued through a government order released by Dharmendra Pratap Yadav, secretary of the Rural Development and Panchayat Raj Department. The scheme is part of the state’s broader Vetri Tamilagam vision, under which the government plans to build five lakh new houses for poor and vulnerable people in rural areas.
Under the first phase, each approved beneficiary will receive financial assistance of Rs 5 lakh to construct a house. The homes must have a minimum area of 360 square feet and a maximum area of 500 square feet, including a kitchen. Construction materials will be supplied in two stages, based on the convenience and requirements of the beneficiaries.
The order gives priority to households living in structures classified as huts, homes with mud walls and buildings with weak or insecure roofs. People affected by natural disasters and eligible beneficiaries who were left out of previous surveys will also receive priority, according to the government’s guidelines.
Beneficiaries who require additional funds may access loans of up to Rs 50,000 through the Tamil Nadu State Rural Livelihoods Mission at an interest rate of 6 per cent. They may also obtain housing loans of up to Rs 1 lakh through cooperative or commercial banks. For these loans, the state will provide an interest subsidy of 3 per cent a year for a maximum period of 15 years.
The detailed guidelines governing the loans and other parts of the scheme will be issued later. The government order also provides for the construction of toilets under the Swachh Bharat Mission at a cost of Rs 12,000 per household.
The allocation will include a discretionary quota for each district. District Collectors will have discretion over 5 per cent of the houses allotted to their respective districts. The provision is also intended to accommodate eligible beneficiaries who may have been missed during surveys and people whose homes have been affected by natural disasters.
The scheme places the district administration at the centre of beneficiary identification and allocation, while construction support will combine direct assistance, staged material supply, institutional credit and sanitation funding. The next formal milestone will be the release of detailed implementation guidelines for the 70,000 houses approved for 2026-27.
