The Executive Committee of the National Economic Council (ECNEC) on Tuesday has approved compact township project for rural people of seven divisions involving TK424.34 crore.
The cooperatives based township project branding as "Palli Janapad" aiming to save arable land, ensure food security as well as improve their living standards, reports BSS.
The approval came from the 5th ECNEC meeting of the current fiscal held at the NEC conference room in capital's Sher-e-Bangla Nagar with ECNEC chairperson and Prime Minister Sheikh Hasina in the chair.
Planning Minister AHM Mustafa Kamal, after the meeting, told reporters that four-storey buildings would be constructed in seven villages of the seven divisions accommodating some 272 families in each village.
He said the project had been undertaken as a pilot basis and based on its successes it might be extended in future.
The project sites would be selected prioritising on the wage-earners' remittance prone areas.
Under the project, there will be flats in four categories for the beneficiaries. A-type flats would be sized of 915 square feet while B-type flats of 710 square feet, C-type flats of 460 square feet and D-type flats of 365 square feet with each square feet areas having a price of TK1603.
Of the total project cost, the government would initially provide 70 percent of the cost while the remaining 30 percent will come from the beneficiaries.
The flat owners would repay the loan to the government in 15 years at a flat rate of 5 percent interest.
The government will bear TK362.98 crore of the Palli Janapad project cost while the beneficiaries will contribute TK61.36 crore.
The ECENC approved a total of three uplift projects including the Palli Janapad with the outlay of TK829.85 crore.
"Of the total project cost, the government will provide TK520.03 crore from the national exchequer while TK87.41 crore will come from the organisation's own fund and TK222.41 crore as project assistance," informed planning minister.
The Palli Janapad project is expected to complete by June, 2017.
Center for Irrigation and Water Management (CIWM) and Rural Development Academy (RDA) will jointly implement the project under the Rural Development and Cooperatives Division.