The Union Cabinet has raised housing assistance substantially under the Indira Awas Yojana to provide quality and affordable houses.

This was disclosed by Finance Minister P Chidambaram in New Delhi yesterday after the Cabinet meeting.

The unit assistance provided for homestead site to those living below the poverty line has been doubled to 20 thousand rupees.

Those, who have neither agricultural land nor a house site for buying a homestead site will be eligible for the assistance.

The Cabinet has also approved infusion of 12,517 crore rupees of additional capital in public sector banks.

Mr Chidambaram said this will be completed by March this year and will enable the banks to maintain their Cash reserve ratio. Disinvestment of ten per cent paid up equity of Public sector Engineers India Ltd. was also given the nod by the cabinet.