The Union government is formulating a scheme to provide financial assistance to contractors that develop temporary housing facilities for labourers at construction sites, Housing and Urban Affairs Minister Manohar Lal Khattar said on June 18 while addressing the Bharat Buildcon international exhibition in New Delhi. 
The proposed scheme is intended to improve welfare standards for construction workers and will utilise funds generated through labour cess collected by state governments. Under existing provisions, contractors pay a labour cess equivalent to one per cent of the contract value, which is collected by states for worker welfare initiatives. 
Khattar stated that the government is preparing a framework under which contractors establishing temporary accommodation for labourers during the construction period would receive financial support from the labour cess fund. According to the minister, the initiative is expected to reduce the capital expenditure incurred by contractors in creating worker housing infrastructure. He added that the scheme would be announced shortly. 
Alongside labour welfare measures, the minister indicated that the government is evaluating the possibility of making durability certificates mandatory for buildings. The proposal follows instances where completed buildings were subsequently declared unfit for occupation and required demolition. Khattar said the ministry is examining the feasibility of introducing such a requirement and, until then, encouraged developers to voluntarily begin issuing durability certifications for their projects. 
Addressing representatives from the real estate and construction industries, Khattar emphasised the need for developers to serve all segments of the housing market, ranging from affordable homes priced between INR 5 lakh and INR 10 lakh to premium and luxury residential projects. He also urged companies to improve project execution timelines through the adoption of modern construction technologies while maintaining a strong focus on quality, durability and sustainability. 
The minister noted that India currently constructs approximately 70-90 crore square metres annually and said there is scope to significantly improve construction speed through technologies such as prefabricated building systems and other modern construction methods. 
Highlighting urban planning initiatives, Khattar said the government has introduced a Transit-Oriented Development (TOD) policy that permits real estate development within 500 metres of metro corridors, highways, railway tracks and Regional Rapid Transit System (RRTS) networks. The policy is intended to promote higher-density development around public transport infrastructure and reduce traffic congestion in urban centres. 
He further noted that the National Capital Region Planning Board (NCRPB) has recently approved plans for the development of four new cities aimed at easing population pressure on Delhi and supporting more balanced regional growth. 
On infrastructure investment, Khattar said the Union government's infrastructure allocation has increased to INR 12.2 lakh crore for FY27 from approximately INR 2 lakh crore in 2014. He also highlighted the expansion of India's urban transit network, stating that the country currently has 1,155 kilometres of operational metro rail infrastructure, while an additional 950 kilometres are under construction. 
Speaking at the event, Minister of State for Commerce and Industry Jitin Prasada said India's growing network of free trade agreements with developed economies is expected to create significant opportunities for businesses, particularly micro, small and medium enterprises (MSMEs). He encouraged international companies to establish operations in India and partner with domestic enterprises to support long-term industrial growth. 
NAREDCO President Parveen Jain said the emphasis on faster project execution, combined with quality, durability, affordability and sustainability, aligns with the needs of India's rapidly urbanising economy and expanding real estate sector. 
Source - PTI