The Hindu : Govt. accused of neglecting urban housing

Online edition of India's National Newspaper
Saturday, Sep 07, 2002

Southern States

Southern States - Andhra Pradesh-Hyderabad

Govt. accused of neglecting urban housing

By Our Special Correspondent

HYDERABAD Sept. 6. The BJP general secretary, K. Laxman, has criticised the State Government for neglecting housing in urban slums in spite of the generous subsidy offered by the Government of India.

Talking to reporters here on Friday, he said the Centrally- sponsored Valmiki Ambedkar Awas Yojana (Vambay), launched amid fanfare by the Prime Minister in Hyderabad last year, had not taken off so far due to the State Government's reluctance to give guarantee to HUDCO for repayment of loans availed by the beneficiaries.

Under this programme, the Centre gives 50 per cent subsidy and 50 per cent loan through HUDCO for construction of urban houses in municipalities (unit cost Rs. 40,000), special grade municipalities (Rs. 50,000) and municipal corporations (Rs. 60,000). Dr. Laxman said the Centre sanctioned a grant of Rs. 200 crores between December 2001 to March 2002 and 50,000 houses in 2002-03 but the State Government could not utilise this offer.

The BJP leader said it was quite strange that the Government was preferring banks over HUDCO for loans when the former were posing a number of questions about the mode of repayment by the beneficiaries. He said Hyderabad had suffered the most since 5,000 houses had been sanctioned in the City but there was no housing activity in the slums. He blamed the A. P. Housing Corporation for this alleged lapse.

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