Work on the project at Endada has come to a halt
A solution is likely to emerge for resumption of work on the Harita housing project of VUDA. But even if the solution works, the project will take another one-and-half year for completion, it was reliably learnt.
Work on the project on 20 acres of site at Endada has come to a halt for more than a year now and those allotted plots in it are agitated over the cost escalation amounting to Rs.40 crore.
Having cancelled the contract with Jurong India that had been executing the work, VUDA now awaits the State Government’s approval to fix up another agency. One of the views gaining ground is that once construction resumes, the cost escalation being opposed by the allottees can be tackled effectively.
Sources said since the earlier expression of interest of designing and building and handing over more than 700 flats to VUDA had been terminated, it is difficult to find an agency that would come forward to work for the standard scheduled rates fixed three years ago. Cost escalation is inevitable, says an official.
A proposal being put forward by VUDA in view of the cost of the project - about Rs.120 crore - involved is to split it category-wise, HIG, MIG and LIG to speed up the work.
A high-level meeting with the Municipal Administration Minister and the Principal Secretary, MA&UD who is the Chairman of VUDA will take place at Hyderabad on Friday in which Vice-Chairman N. Yuvaraj will participate.
The cost factor is also expected to be worked out taking into the account the instalments so far paid by the allottees and the interest that accrued. However, only bank interest will be taken into account.
It was learnt that 13 allottees wanted their money to be paid back cancelling the allotment made to them. A legal procedure will be worked out for it also, it was learnt.