This is subsequent to escalation of dwelling unit cost to Rs.2.21 lakh

The Vijayawada Municipal Corporation (VMC) has decided to increase the beneficiary contribution to Rs. 66,000 from existing Rs 42,000 for allotting the houses constructed under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme.

The VMC Council on Thursday noted that there was escalation in the project cost which was Rs. 1.32 lakh per dwelling unit. The project cost touched Rs. 372.20 crore from Rs. 341.42 crore in 2006-07. The VMC calculated that cost of each dwelling unit touched Rs. 2.21 lakh as against original cost of Rs. 1.32 lakh. The VMC officials told the Council that the 30 percent beneficiary contribution increased to Rs. 66,000 from Rs. 40,000 in 2006-07.

The cost was estimated based on the SSR, tender percentage etc in 2006-07.

In view of rise in the SSR etc, the government allowed to revise the unit cost in 2009 through GO 233. The unit cost was Rs. 2.08 lakh (for 8,216 houses), Rs. 1.57 lakh (1,152 houses) and Rs. 1.92 lakh (5,632 houses). In all these cases, the beneficiary contribution was only Rs. 39,600. The project cost increased though the government revised the unit cost. Subsequently, the VMC brought the issue to the notice of APUFIDC, which is nodal agency for implementation of JNNURM.

The APUFIDC asked the Corporation to submit revised DPR for 13,760 houses (as against total sanction of Rs. 15,000 houses) for which works began. The Corporation submitted revised DPR and the project cost stood at Rs. 372.92 crore. The Government of India share would be Rs. 90.82 crore, while it is Rs. 97.57 crore for State government. The VMC would have to bear Rs. 48.12 crore and the beneficiary contribution would be Rs. 54.49 crore, which is Rs. 66,000 per each dwelling unit, the officials said.

Extension of lease period of Prakash Arts to collect the out door advertisement tax, registration of new licenced surveyors, engineers and structural engineers and sale of vacant lands at Vambay colony were some of the other subjects that have been placed before the Council. The Prakash Arts has come forward to pay Rs. 73.26 lakh for a period of three months from November 30, 2013 to March 31, 2014. The VMC has decided to enroll new licensed surveyors and engineers. It has decided to collect Rs. 10,000 each for licence and security deposit. The licence would be issued for a period of five years.

Krishna district collector and chairman M. Raghunandan Rao, and Municipal Commissioner C. Hari Kiran were present.

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