New Delhi, Nov 24 (IANS): The government Monday said it will offer interest subvention on housing loans to make it more affordable for the poorer sections of the society to own a house.

"We are coming out with an interest subvention scheme for the housing sector for the economically weaker section and lower income group people," said Housing and Urban Poverty Alleviation Minister M. Venkaiah Naidu at an industry event here.

As per government data, the housing shortfall is 18.78 million out of which more than 90 percent is in the LIG segment.

The projected housing shortage of 30 million units is predicted by 2022, the government requires funding of Rs.22.50 lakh crore in overcoming the house shortage during the period.

According to Naidu, who was addressing the ninth conclave of the confederation of real estate developers association of India (CREDAI), the government has incorporated all the inputs from builders, consumers and other stake holders in the new real estate regulation and development bill.

"We have taken the views of various stakeholders including real estate sector. Then we will go to the cabinet shortly. Once the cabinet approves, I am hoping we will get early clearance," Naidu said regarding the approval procedure of the new bill.

"If not this session, at least by the budget session the real estate development and regulation bill will be a reality."

C. Shekar Reddy, national president, CREDAI recommended to the government that units under the area of 40 sq mts be treated as national infrastructure.

Reddy further said that housing is the only sector that attracts multiple taxation. Presently the total tax to be paid is 30-40 percent.

"The status of priority sector lending to the affordable housing segment (already announced by RBI for affordable housing) is a needed decision, yet to be implemented," Reddy said.