Government Proposes Free Construction Materials, Rs 75,000 Grant for First-Time Homebuilders

The government has proposed providing free locally available construction materials to Nepali citizens who do not own a safe home and are building a house for the first time.

The provision is included in the proposed Building Bill, 2083, registered at the Federal Parliament Secretariat by the Ministry of Infrastructure Development. The bill aims to guarantee citizens’ right to housing, particularly for low-income families, while promoting safe and organized housing for middle-income households.

Under the proposed law, eligible first-time homebuilders would receive materials including timber, stone, sand, gravel and soil according to government-approved designs and standards. Local governments would also provide technical consultation, model designs and assistance in preparing building plans free of charge.

Building permit and map-approval fees would also be waived for eligible households. Similar free material provisions have been proposed for citizens constructing livestock sheds.

Extremely poor and economically vulnerable families would be eligible for at least Rs 75,000 in housing assistance based on the recommendation of the concerned local government. The grant would comprise Rs 50,000 from the federal government and at least Rs 25,000 from the provincial government.

The government also plans to relocate families living in disaster-prone and unsafe settlements to safer locations, with arrangements for land and housing.

The bill proposes promoting earthquake-resistant, environmentally friendly “smart homes” for middle-income families. Such homes are expected to cost between Rs 2 million and Rs 7.5 million, with plinth areas ranging from 900 to 1,300 square feet.

The government would coordinate with banks and financial institutions to provide concessional loans, insurance, tax exemptions and other financial incentives.

Proposed financing options include a Rs 500,000 down payment with monthly instalments of around Rs 11,000 for 15 years. Other options include monthly instalments of Rs 15,000, Rs 20,000, Rs 30,000 and Rs 35,000 for down payments of Rs 1 million, Rs 1.5 million, Rs 2 million and Rs 2.5 million, respectively.

The bill also requires local governments to identify sources for construction materials and complete necessary environmental assessments within three months of the Act coming into force.

If materials are unavailable locally, municipalities and rural municipalities could obtain them from other local governments, with the supplying local government responsible for transportation up to the boundary of the requesting local government.

The federal and provincial governments would support timber cultivation and local production of construction materials through grants and budget allocations. A Building Safety Assistance Fund is also proposed to support the retrofitting of vulnerable houses.

Once enacted, all three levels of government would have one year to establish the required budget, manpower, procedures and systems to implement the provisions.

The Ministry of Infrastructure Development said the bill has been registered to provide a legal framework for safe, affordable housing and to ensure the right to housing for citizens across income groups.