"Tamil Nadu Government today assured me that it will sanction three lakh houses during 2017-18. Because after 2017-18, I am not going to sanction... 2019-20 are election years and there will not be any time", he told reporters.
On funds allocated to the state under the scheme, he said "the total outlay is Rs 3,855 crore. And the amount released to the state is Rs 1,433 crore so far".
"Tamil Nadu is one of the top performing states with reference to obtaining sanction from Government of India. The state should maintain its tempo and expedite construction of the Houses", he said.
The Minister also advised real estate developers to fulfill the promises made by them while placing advertisements in newspapers.
"I am not asking builders to do anything out of the way. What you have promised, fulfill it. What you promised through prospectus, what you have promised through big, big colourful advertisements in newspapers, fulfill it", Mr Naidu said.
Mr Naidu also warned builders that they would be "fined" or even "prosecuted" if they do not follow the rules.
"If you do not follow rules, (realty developers) then you will be fined. And if you violate (the rules), you will be jailed", he said.
The minister also had a word of praise to the real estate developers for doing a "great job" in the sector.
"The Government alone will not be able to do Housing for All scheme by 2022. I believe in Public Private Partnership and the private sector will come in big way", he said.