Construction of Hostels for OBC Boys and Girls
Central funding for OBC student hostel construction · ₹3–3.5 lakh/seat · state governments
State governments, UTs, and central institutions like IITs and central universities can apply for central funding to build OBC student hostels, enabling Other Backward Class students — especially from rural areas — to pursue education near their institutions. The Centre covers 60–100% of construction cost depending on the type of hostel and institution. Submit proposals to the Ministry of Social Justice and Empowerment, New Delhi.
About This Scheme
State governments, UTs, and central institutions like IITs and central universities can apply for central funding to build OBC student hostels, enabling Other Backward Class students — especially from rural areas — to pursue education near their institutions. The Centre covers 60–100% of construction cost depending on the type of hostel and institution. Submit proposals to the Ministry of Social Justice and Empowerment, New Delhi.
Full official description
The scheme “Construction of Hostels for OBC Boys and Girls” is a Centrally Sponsored Scheme launched by the Department of Social Justice & Empowerment, Ministry of Social Justice & Empowerment in 1998-99 to address the problem of educational backwardness of OBCs. The Scheme was initiated with a view to facilitate continuation of education by students belonging to OBCs, especially those hailing from rural and remote areas and from poor families. Objective: 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. Priority will be given for the proposals for construction of hostels for under-graduate students vis-a-vis below under-graduate level.
Benefits
- ₹3.50 lakh per seat in North Eastern Region; ₹3.25 lakh in Himalayan states; ₹3.00 lakh in rest of India (or state PWD rates, whichever is lower)
- ₹2,500 per seat one-time furniture/equipment grant
- Boys' hostels: 60% Centre + 40% State funding
- Girls' hostels: 90% Centre + 10% State (100% for UTs; 90% for NE/Himalayan states)
- Central universities/institutions: 90% Centre + 10% institution share
- Grants released in three installments: 50% + 45% + 5% (final 5% after completion and occupation)
💡 Why Startups Should Care
Proptech and student housing startups in Tier-2 cities should track hostel construction under this scheme — newly built OBC hostels represent a predictable influx of students seeking supplementary study resources, edtech, and food delivery in under-served locations.
Who Can Apply (Eligibility)
- Only State/UT governments and central autonomous institutions (IITs, NITs, Central Universities) are eligible to apply — not individuals
- Preference given to regions not yet covered and areas with many educational institutions
- Students housed must be from OBC (non-creamy layer), primarily post-matric level
- At least 5% of hostel seats must be reserved for students with disabilities
- Preference for OBC students from low-income families
How to Apply
- Download the proposal format from Annexure-I of the official scheme document at socialjustice.gov.in.
- Complete the form and submit it with all required documents to: Joint Secretary (Backward Classes), Ministry of Social Justice and Empowerment, Shastri Bhavan, New Delhi – 110001.
- Projects are sanctioned in phases; priority is given to regions without hostel coverage and towns with many educational institutions.
- Funds are released in three installments (50:45:5 ratio). The final 5% is released after rooms are occupied by OBC students.
- Construction must be completed within 18 months of the work order or 2 years from the 1st installment release.
Frequently Asked 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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Documentary evidence of land availability (plot number and area)
- Site plan
- Preliminary cost estimate per PWD/CPWD schedule of rates, signed by Executive Engineer or above
- Copy of latest annual report
- Certified receipts/expenditure statement and balance sheet for the last two years
- Any other required documents