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Housing & Shelter

Construction of Hostels for OBC Boys and Girls

The Scheme aims at providing hostel facilities to students belonging to socially and educationally backward classes, especially from rural areas, to enable them to pursue secondary and higher education.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- The cost per hostel seat in different areas under the scheme are as follows:- | - North Eastern Region: ₹3.50 lakh per seat | - Himalayan Regions: ₹3.25 lakh per seat | - Rest of country: ₹3.00 lakh per seat | (OR) as per the schedule of the rates for the concerned State Government, whichever is lower. | - There will also be a one-time non-recurring grant of ₹2,500/- per seat for providing furniture/equipment to the hostels constructed under the Scheme. | - The funding pattern as per the guidelines are: | - The cost of construction of hostels for Boys has to be shared between the Centre and the State in 60:40 ratio. | - There will be 90% central assistance to State Governments in case of Girls Hostels and 10% of cost will be borne by the State Governments. | - In case of Union Territories, the Central Assistance shall be 100% and for North Eastern States and 3 Himalayan States (Jammu and Kashmir, Himachal Pradesh and Uttarakhand), it shall be 90%. | - For Central Universities/Institutes, the share will be 90% by Government of India and 10% by the Central University/Institute for both Boys and Girls Hostels. | - The amount of grant will be released in 3 installments in 50:45:5 ratio, of which 5% grant will be released after completion of the work and occupation of the rooms by the OBC Boys and Girls. | Note: The construction work of the Hostel has to be completed within eighteen months from award of work order or two years from the release of 1st installment of Central assistance, whichever is earlier. In no case the time will be extended beyond 2 years. Any cost escalation due to delay in the project will be borne by the State/Institute. Proposals for 2nd installment must be received in this Ministry within one year from the date of release of 1st installment after completing construction work up to roof level.

Who can apply

State Governments and UT Administrations.; Institutions or organizations set up by the Central Government as autonomous bodies under a statute (e.g. Central Universities, IIT, NIT, etc.).; While sanctioning hostels, priority will be given to:; As far as possible, hostels will be constructed in close vicinity of educational institutions.; Students whose castes are included in the Central/State/UT list of Other Backward Classes and who do not belong to the "creamy layer".; Hostels would be essentially for post matric students. However, if there are vacant seats, pre-matric students, especially of the secondary level, would also be eligible to be accommodated.; Other things, being equal preference will be given to OBC students hailing from low-income families.; At least 5% of the total seats should be reserved for students with disabilities.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the primary objective of the scheme?

The scheme aims to provide hostel facilities to students belonging to socially and educationally backward classes, especially from rural areas, to enable them to pursue secondary and higher education.

Who are the implementing agencies eligible for assistance under this scheme?

Eligible agencies include State Governments, Union Territory Administrations, and institutions or organizations set up by the Central Government as autonomous bodies under a statute (e.g., Central Universities, IITs, NITs).​

What are the cost norms per hostel seat in different regions?

The cost per hostel seat is as follows:​ | - North Eastern Region: ₹3.50 lakh per seat | - Himalayan Regions: ₹3.25 lakh per seat | - Rest of the country: ₹3.00 lakh per seat | - Alternatively, as per the schedule of rates for the concerned State Government, whichever is lower.

How is the cost of construction shared between the Centre and the State for boys' hostels?

The cost is shared in a 60:40 ratio between the Centre and the State for boys' hostels.

What is the funding pattern for girls' hostels?

There is 90% central assistance for girls' hostels, with the State Governments bearing 10% of the cost.​

How is funding structured for Union Territories and North Eastern States?

For Union Territories, Central Assistance is 100%. For North Eastern States and the three Himalayan States (Jammu and Kashmir, Himachal Pradesh, and Uttarakhand), Central Assistance is 90%.

What is the timeline for completing the construction of the hostels?

The construction work must be completed within 18 months from the award of the work order or two years from the release of the first installment of Central assistance, whichever is earlier. No extensions beyond two years are permitted.​

Is acquiring new land necessary for constructing hostels under this scheme?

No, acquiring new land is not necessary. Hostel construction can be undertaken within ongoing State Government projects of institutions such as medical colleges, engineering colleges, polytechnics, etc.

How is the grant released for the construction of hostels?

The grant is released in three installments in a 50:45:5 ratio, with the final 5% released after completion of the work and occupation of the rooms by OBC students.

Is there any provision for furniture or equipment for the hostels?

Yes, there is a one-time non-recurring grant of ₹2,500 per seat for providing furniture/equipment to the hostels constructed under the scheme.

Is there a provision for evaluation and quality inspection of the constructed hostels?

Yes, a total of 0.25% of the budget allocation or up to ₹10 lakh is reserved for undertaking evaluation, third-party inspection about quality, and miscellaneous expenses related to the implementation of the scheme.

Can hostels be constructed in villages selected under the "Saansad Adarsh Gram Yojana (SAGY)"?

Yes, construction of hostels for OBC boys and girls in an Adarsh Village selected under SAGY can be undertaken, provided land is available and the selected village is located in proximity to educational institutions.

Are there specific criteria for selecting students for hostel accommodation?

Yes, major criteria include the merit of the applicant, permanent residency of the state, annual family income, and caste of the student.