T.N. Government Allocates ₹3,500 Crore for One Lakh Houses Under Kalaignar Kanavu Illam Scheme

The Tamil Nadu government has sanctioned a ₹3,500 crore budget for the construction of one lakh houses across the state as a part of the Kalaignar Kanavu Illam program in 2025-26. This is part of the State government’s long-term vision to eliminate thatched huts build a “hut-free Tamil Nadu” by 2030, and provide permanent housing to families living in rural areas.

The ₹3.50 lakh per house under the scheme will provide affordable and durable housing to the economically weaker sections. The project will be funded by ₹1,200 crore under the Scheme Component of Pooled Assigned Revenue (SCPAR), ₹900 crore under the Panchayati Raj Institutions’ devolution grants, ₹400 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Swachh Bharat Mission and ₹1,000 crore under the State grant.

Named after late Chief Minister M. Karunanidhi, the Kalaignar Kanavu Illam initiative aims to reduce the living standards of rural homes. It has stated to build a total of eight lakh houses under this initiative by 2030, providing thousands of families with housing infrastructure.

Announcing the project in the Budget 2025-26, Tamil Nadu’s Finance Minister reiterated the state’s commitment towards rural development and housing. Under the first phase, to be implemented in the next financial year, one lakh houses will be constructed.

With this investment, the government is playing a pivotal role in the realm of housing security and poverty alleviation, further establishing Tamil Nadu as a state committed to equitable growth.