Vetri Veedu Scheme 2026: Tamil Nadu Approves 70,000 Houses with Rs. 3,500 Crore Funding

The Tamil Nadu government has issued an order approving the construction of 70,000 houses under the Vetri Veedu Scheme during the 2026–27 financial year. An amount of Rs. 3,500 crore has been allocated for the first phase of the scheme.

The initiative is part of the broader Vetri Thamizhagam vision, under which the government has announced plans to construct five lakh houses for poor and economically weaker families in rural areas.

Vetri Veedu Scheme 2026: Key Details

Under the first phase, 70,000 houses will be constructed during the 2026–27 financial year. Eligible beneficiaries will receive financial assistance of Rs. 5 lakh per house.

The important details of the scheme are:

- Scheme Name: Vetri Veedu Scheme

- First Phase: 70,000 houses

- Financial Year: 2026–27

- Total Budget: Rs. 3,500 crore

- Government Assistance: Rs. 5 lakh per house

- House Size: 360 to 500 square feet

- Construction Period: 2026–27 to 2030–31

House Construction and Facilities

Beneficiaries can construct houses measuring a minimum of 360 square feet and a maximum of 500 square feet. Each house must include a kitchen and have a concrete roof.

The scheme aims to provide permanent housing for families living in huts, houses with mud walls and buildings with weak or unsafe roofs.

Who Will Get Priority Under the Vetri Veedu Scheme?

Priority will be given to poor and vulnerable families living in rural areas, particularly those residing in:

- Thatched or temporary huts

- Houses with mud walls

- Buildings with weak or unsafe roofs

For the initial allocation of 70,000 houses, the government has also permitted the selection of beneficiaries from the existing list of homeless families maintained by the Rural Development Department.

How Will Beneficiaries Be Selected?

A household survey will be conducted in rural areas using a mobile application to identify eligible families.

Based on the survey, a preliminary list of beneficiaries will be prepared and displayed at the respective village panchayat offices for public information.

The final list of selected beneficiaries will be published at panchayat offices and on the government`s official website.

Additional Financial Assistance for House Construction

Families requiring additional funds to complete their houses can access financial support through the following options:

- Community Investment Fund: Loans of up to Rs. 50,000 through the Tamil Nadu State Rural Livelihoods Mission at an interest rate of 6%.

- Housing Loans: Loans of up to Rs. 1 lakh through cooperative or commercial banks.

The government will provide an annual interest subsidy of 3% on these loans for a maximum period of 15 years. Detailed guidelines regarding these financial arrangements will be issued separately.

Free Toilet Facility Under the Scheme

Eligible beneficiaries who do not have individual household toilets will receive assistance to construct a toilet under the Swachh Bharat Mission-Gramin.

The government will provide Rs. 12,000 for the construction of each eligible household toilet.

District-Wise Allocation n and Special Priority

Five per cent of the total houses allocated to each district will be reserved under the discretionary quota of the District Collector.

Priority under this allocation will be given to eligible families affected by natural disasters and those who were left out of the initial household survey.

Vetri Veedu Scheme Budget Allocation

The Tamil Nadu government has allocated a total of Rs. 3,500 crore for constructing 70,000 houses during 2026–27.

The funding will be divided as follows:

The Rural Development and Panchayat Raj Commissioner has been authorised to recover the Rs. 900 crore contribution from village panchayat grants in monthly instalments.

Implementation of Vetri Veedu Scheme Until 2031

The government has also approved detailed guidelines for implementing the scheme during the five-year period from 2026–27 to 2030–31.

The Rural Development and Panchayat Raj Commissioner has been instructed to monitor the utilisation of funds, ensure construction quality and submit progress reports to the government.

The scheme is intended to improve housing facilities for poor and vulnerable families in rural Tamil Nadu.