Union Minister for Housing and Urban Affairs, Manohar Lal Khattar, announced that the Indian government is adopting new measures to fund affordable housing. He revealed that traditional financial institutions often hesitate to provide loans for projects aimed at creating affordable homes, prompting the central government to promote charitable organizations to invest in these initiatives. This shift is seen as a critical strategy to alleviate the funding gap faced by developers focused on low-cost housing.

Speaking at the second day of the 'NAREDCO Conclave 2026', the minister emphasized the government's aim to restart housing projects that have been stuck for years and to effectively utilize vacant urban land to expedite the construction of homes for the underprivileged. Khattar acknowledged that the lack of funding for affordable housing, especially for Economically Weaker Sections (EWS) and Lower Income Groups (LIG), poses a significant challenge. The promotion of alternative funding sources through charitable institutions could provide a much-needed boost to this sector.

The announcement reflects the Indian government's commitment to addressing housing shortages and fulfilling the dream of home ownership for millions of citizens. By attracting non-traditional funding sources, the government hopes to catalyze stalled projects and ensure efficient use of urban land, thereby providing a sustainable solution to housing issues faced by economically disadvantaged groups in India.