Ranchi: The cabinet approved Rs 33.04 crore on Tuesday to build 444 housing units at Islam Nagar in Ranchi for families displaced during an anti-encroachment drive in April 2011.

According to principal secretary, home, S.K.G. Rahate, the beneficiaries, most of whom belong to the minority community, would be given the new homes free and not for Rs 50,000 as had been decided earlier.

Rahate, who also holds the additional charge of cabinet coordination department, told the media that the Centre's contribution for the project was Rs 6.66 crore while the remaining Rs 26.38 crore would be borne by the state.

The anti-encroachment drive at Islam Nagar was carried out on the orders of Jharkhand High Court amid stiff resistances by local residents. With former Union minister and the then Ranchi MP Subodh Kant Sahay on the forefront, the protests suddenly turned violent leading to the death of a 17-year-old boy.

Since then, the state government has been looking to rehabilitate the displaced families. Finally, it has decided to resettle the residents at the very place from where they were uprooted.

Other cabinet decisions:

Pension regulations were amended to allow provisional pension, but no gratuity, to those facing departmental proceedings and judicial cases

• Regulations for promotions to the rank of assistant sub-inspector of police through departmental exams amended

• Rs 750 crore financial aid approved for JUVNL for settling outstanding dues of DVC and other agencies

• Drafts approved of Capital University Bill, Rai University Act Amendment Bill, Jharkhand Tribal Welfare Fund Regulations, Jharkhand Municipal Act Amendment Bill, Motor Vehicles Taxation Act Amendment Bill and regulations for transfer of funds to newly formed municipal bodies in Jugsalai and Mango

• Government land measuring 14.53 acre at Mohanpur village of Saraikela-Kharsawan district leased to Arka Educational and Cultural Trust for 30 years for Rs 12.17 crore

• Regulations amended to transfer Rs 7 crore to Jharkhand Milk Federation for setting up dairy plant in Palamau

• Rs 1 lakh aid approved for Jharkhand pilgrims (maximum two members of a family) going to Kailash Mansarovar.