RSS

Centre no to subsidy for housing projects

Mon, Mar 8, 2010

Lucknow Property

Uttar Pradesh government is set to lose its sleep over a missed ‘discount’. In a move which potentially threatens state government’s scheme to provide affordable housing to all, the Union ministry of housing and poverty alleviation has rejected the proposals pertaining to subsidy under the scheme.
What has actually made the housing officials here jittery is the fact that the state is set to lose Rs 450 crore, which were earmarked for the purpose for the financial year 2009-10. Not surprisingly, the amount would lapse by the end of this month. And, the department would be required to start all over, right from the scratch.

A senior official in the ministry told  that the state housing department ‘‘had its calculations for availing subsidy all wrong’’. Joint secretary in the department, P K Mohanty, who is also the mission director of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) said
that ‘‘the department is in the process of revising the guidelines in order to simplify them.’’ When asked about the fact that the said funds would lapse, he said: ‘‘There would still be enough funds for the state governments to avail and provide affordable housing in their respective states in the new financial year,’’ he said.
According to the scheme,
the Centre

had earmarked Rs 470 crore for Uttar Pradesh itself. Under this, each housing unit, that is economically weaker section (EWS) and low income group (LIG) was sought to be provided a subsidy of Rs 50,000. The state government also had the option of availing 25 per cent subsidy in infrastructure and civic development, while it constructs the housing colony for a relatively lower rung.
A senior housing official in Uttar Pradesh said that they had positioned themselves as
per the requirement of the scheme. ‘‘Initially, we were ready for the subsidy for each housing unit. The proposal was kept pending for months and there was no green signal from the Centre,’’ the official said. He added that the department then sent a proposal for availing subsidy for civic development. ‘‘But once again the proposal was gathering dust,’’ the official said.
Like in case of Lucknow Development Authority (LDA), which too has reported to have got submitted its proposal twice for the ongoing affordable housing projects like Apna Ghar and Sulabh housing scheme, which range from around Rs 2 lakh to Rs 3.5 lakh, per housing unit. LDA vicechairman, Mukesh Meshram said that they are not able to comprehend as to why things did not materialise. ‘‘The per unit housing cost could have
come down further,’’ he said.
With the cement prices now being hiked, prospects of the cost of the said schemes witnessing an escalation cannot be ruled out.

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