New Delhi, March 23 (IANS): The government on Tuesday announced that it will help build 2.95 crore houses in India's rural areas and for this a financial assistance of up to Rs.1.30 lakh will be provided to poor homeless families or living in temporary shelters.

Communications and IT Minister Ravi Shankar Prasad called it "a very important decision" taken by the cabinet at its meeting here on Wednesday with Prime Minister Narendra Modi in the chair.

He said a total of 2.95 crore houses are needed to be constructed as per the last Census and the target will be achieved by 2022 -- the 75th year of India's Independence. 

Every poor family living in plains will get Rs.1.20 lakh and those living in "hilly and difficult" areas will receive an assistance of Rs.1.30 lakh under the "Housing for All" scheme, the minister said.

"This programme will run for 6-7 years," Ravi Shankar Prasad told reporters, adding the proposal is to run the scheme in two phases.

The government proposed "to construct one crore houses in the first three years", he said. For this, he said, the government would need to spend nearly Rs.82,000 crore.

"Out of which, Rs.65,000 crore will be provided by budgetary provisions" and the rest will come from India's apex development bank NABARD, Ravi Shankar Prasad said.

The minister stressed that "transparency in the selection of beneficiaries" will be maintained in the implementation of the schemes. 

Masons to be employed for building the houses should be trained properly so that the construction is done as the per the regional requirements, he said.