State housing minister Suresh Jain told reporters on Saturday that persons with a family monthly income of Rs 2,100 will be covered under EWS, while those with a family monthly income of Rs 4,500 per month will fall in the LIG bracket. Housing and Urban Development Corporation (Hudco) has already sanctioned to Mhada a loan of Rs 74 crore of the total requirement of Rs 450 crore required for the project. Jain said that 60 per cent of the total 77,420 houses will be constructed for EWS and sold at Rs 50,000 each (Rs 200 per sq ft). Hudco will take care of 90 per cent of the loan amount, while 10 per cent of the loan amount will come from Mhada. The beneficiary can avail of loan from Hudco at the rate of 9 per cent and the repayment duration will be 15 years.

In case of LIG, the remaining 40 per cent houses will be constructed and sold at Rs 1,25,00 each (Rs 400 per sq ft). In this case, Hudco will take care of 85 per cent of the loan to be sanctioned while the remaining 15 per cent will come from Mhada. The loan will be available from Hudco at a rate of 12 per cent and can be returned within 15 years.

In Konkan division 15,448 tenaments will be constructed, while in Pune division 19,355 units will be built. In Aurangabad division 15,484 houses will be constructed, whereas in Nashik and Amravati divisions 3,871 units will be constructed. In the Nagpur division 19,355 houses will be built.Jain and chief minister Manohar Joshi said that the fate of the much debated Shivshahi Punarvasan Prakalpa, the slum rehabilitation scheme to provide free houses to city slum dwellers will be decided next week. Joshi added that a five member committee headed by him met today and discussed the issue however no final decision has been taken. A committee comprising Joshi, Jain, deputy chief minister Gopinath Munde, HDFC chairman Deepak Parekh and the Bharatiya Janata Party's city unit president Kirit Somaiya who had opened tirade against the very implementation of scheme.

Meanwhile, the state cabinet today approved the proposal for formation of the Annasaheb Patil Corporation to provide financial assistance for the economically backward sections of the society. Joshi said the corporation would not only provide loans for the educated unemployed but also strive for their economic upliftment.

The state government will provide a share capital of Rs 50 crore in the corporation which would be headquartered in Mumbai. Joshi said that the appointments of chairman, vice chairman and directors would be done by the state government. There would be 15 directors on the board.