Vijayawada Municipal Corporation (VMC) declined to take up the construction of 10,000 houses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme citing its poor financial condition.
The civic body suggested Housing Corporation to take up the project. It said that to construct the remaining 10,000 houses will be an additional burden on, and cripple the finances of the Corporation.
According to the corporation, the housing project had become a burden to it as it is yet to collect the beneficiary contribution of Rs 67 crore, and requires another Rs 100 crore to complete 18,000 houses, which are in different stages of construction. It is already shouldering the burden of cost escalation of Rs 57 crore, reports indicate.
The centre, in all, sanctioned 21,752 houses for Vijayawada under Basic Services for Urban Poor (BSUP), a sub-mission of JNNURM. Of these, 14,968 houses were taken up in phase-I and 6,784 in phase-II.
The unit cost of the houses taken up in phase-I is pegged at Rs.1.32 lakh and those of phase-II at Rs 1.40 lakh.
The beneficiaries will have to pay only Rs 10,000 as contribution for allotment of a dwelling unit, and also agree to repay a bank loan of Rs 30,000.