The Hindu : Tamil Nadu News : Government announces waiver scheme for home loans

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Friday, Mar 21, 2008
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Tamil Nadu

Tamil Nadu

Government announces waiver scheme for home loans

Special Correspondent

All concessions will be applicable from April 1 to September 30

Two new taluks will be formed in Pudukottai district
Alangulam cement plant to be modernised

CHENNAI: The State government on Thursday announced waiver of outstanding dues in respect of home loans up to Rs.25,000 availed from urban and taluk co-operative housing societies by people from economically weaker sections.

For those who had availed loans of over Rs.25,000 and up to Rs.1 lakh, penal interest and 50 per cent of interest would be waived on repayment of dues. In the case of persons who had received loans above Rs.1 lakh and up to Rs.2 lakh, 25 per cent of the interest would be waived in addition to penal interest, if they came forward to repay their dues.

For high income groups who had availed loans above Rs.2 lakh and up to Rs.7 lakh, penal interest and 10 per cent of the interest would be waived on repayment of dues.

All concessions would be applicable from April 1 to September 30, 2008, Finance Minister K Anbazhagan said.

Finance Secretary K. Gnanadesikan, briefing the press after the budget presentation, said around four lakh persons would be benefited in the case of waiver of outstanding dues in respect of the loans up to Rs.25,000.

The Minister said 22,000 houses for low and middle income groups and government servants would be built in areas around the cities at an estimated cost of Rs.2,000 crore. The Housing Board would take up the schemes under the self-financing scheme and through public-private partnership.

The State government’s grant for concrete roofing per house under the Indira Awaaz Yojana (IAY) would go up from Rs.12,000 to Rs.20,000. In the coming financial year, about 70,000 houses would be built in rural areas at a cost of Rs.55,000 each under the IAY through the Rural Development department. The share of the Union and State governments in the cost of every house would be Rs.26,250 and Rs.28,750. A sum of Rs.210 crore had been provided in the budget in the form of State share in the unit cost and grant for the roofing cost.

The recommendations of the high-level committee regarding devolution of additional powers and responsibilities to local bodies would be examined and an action taken report placed in the current session of the Assembly, the Minister said.

A new district with Tiruppur as its headquarters would be carved out of Coimbatore and Erode districts. Two new taluks – Karambakkudi and Ponnamaravathi - would be formed in Pudukottai district.

The Alangulam cement plant belonging to the Tamil Nadu Cements Corporation would be modernised at a cost of Rs. 82 crore to double its production capacity. Construction of the proposed Legislative Assembly and Secretariat Complex in the Government Estate, Chennai, would commence during 2008-2009 and Rs.75 crore had been provided in the budget. Having identified the land and finalised the design for a modern library of international standards in Chennai, the government would take up the work in the coming financial year, the Minister said.

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