Presently India is facing shortage of more than 3 crore houses. If the state governments do not make appropriate arrangements in this direction for appropriate land and construction activities are not acclerated according to demand, the shortage of houses may be doubled by the end of 11 th five year plan. As per the statement of central habitation and urban poverty eradication ministry that due to heavy cost in the residential sector and deficit in budget at contral and state leval, private sector, co-operative sector, industrial sector and institutional sector have been recognized active partners under the new residential policy. Its aim is to accelerate the construction of houses according to the requirement of all categories of society. Though public partnership was augmented for construction during the 10 th five year plan, yet construction of houses lagged behind the target considerably as a whole. Now during the 11the five year plan more public partnership will be evolved and simultaneously industrial and institutional sectors will be more and more encouraged to construct houses for labor and employees connected with them. Sources indicate that with which speed the people from rural area are coming to cities in search of job and making their habitation, keeping in view the same it is essential to emphasize the need to target the construction of houses in plenty for poor and low income group people in metro cities and all levels of big and small towns. To achieve this target, it has been decided to increase the government and public partnership. If you look at the present shortage of residential units, you will find that demand of EWSand low income group people is more than 90%. During the next decade, 40% of our population will become the part and parcel of cities. It means that more and more people will be fleeing to cities in forthcoming years. Consequently percentage of EWS and low income group (LIG) people will increase. We will have to concentrate more in this direction to fulfil their residential demand. The share of urbanized poors in the country is about 30%. To overcome this shortage, the government is encouraging big builders that they obtain plots form government and make township and ensure the construction of houses for EWS and LIG categories. At state level, the allotment of plots to private companies shall be made on predetermined terms so that they are made partners in fulfilling the social responsibility.