At this time India is witnessing a new phase in development. with rapid economic growth and high rate of urbanisation. Construction provides the direct means for the development, expansion, improvement and maintenance of human settlements is particular and economic growth in general.

Construction activity accounts for more than 50% of the development outlays in India. Building construction costs are increasing at rates which are So per cent over inflation. This is primarily due to the increase in the cost of basic building materials like burnt brick, steel, cement, timber, etc. As a result, the cost of construction using conventional building materials and construction forms range from As. 40001- to As. 6000/- per sqm even for normal housing.

Construction costs of this order is beyond the affordable capacity of the economically Weaker Section and Low Income Group and a large cross section of the Middle Income Groups, whose income levels have not increased commensurately. This has become all the more relevant in the macro context. due to the large volume of housing to be done in both rural and urban areas and the limited resource of building materials and finance available. According to the projections for the Ninth Five Year Plan, there will be a shortage of 6.6 million houses in urban areas and 12.76 million houses in the rural areas at the end of year 2001, inspite of all the Governmental efforts and resources.

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