"We have sent the proposal to the Finance Ministry," said Rural Development Minister Birender Singh in Rajya Sabha during Question Hour.
Replying to a supplementary, he admitted that the current grant was not adequate to build a house which could be called a "home" and not just a "room".
The government has envisioned a "housing for all" plan in the country by 2022.
Under the centrally-funded IAY, financial assistance is provided to the rural BPL families for construction of houses. Over 73 lakh people have been benefitted in the last three years including current year so far, he said.