Karnataka CM seeks proposal on funds to complete 52000 houses under Rajiv Gandhi Housing Scheme

The CM asked to submit a proposal to the Cabinet about the funds required to complete the project in a phased manner.

Karnataka Housing and Minorities Welfare Minister Zameer Ahmed Khan said that Chief Minister Siddaramaiah has instructed to submit a proposal about the funds required for the completion of 52,189 houses which are meant to be distributed among the poor under the Pradhan Mantri Awas Yojana by the Rajiv Gandhi Housing Corporation.

Most of the beneficiaries were poor and not in a position to pay ₹4 lakh each.

The minister in the review meeting of the Housing Department at the House Office said that the CM was briefed that the beneficiaries haven't paid their contribution of ₹2013 crore towards the construction of 52,189 houses. So, the department required ₹2168 crore. The CM asked to submit a proposal to the Cabinet about the funds required to complete the project in a phased manner.

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He said since 2013 till date, the beneficiaries were supposed to pay ₹2013 crore as their contribution towards the construction of 52,189 houses but only ₹134 crore had been paid.

Most of the beneficiaries were poor and not in a position to pay ₹4 lakh each. They don't get loans from the banks. As done in the case of Karnataka Slums Development Board, if each beneficiary pays ₹one lakh and the rest is paid by the government, this housing project would be completed.

The same was conveyed to the CM who asked to move this proposal to the coming Cabinet meeting.

Khan said the CM was informed that if ₹100 crore is allocated, 5,000 homes can be provided by February. Following a similar progression, allocating ₹1879 crore would cover the total amount needed for the beneficiaries, totalling ₹2168 crore. This allocation would ensure the completion of all homes by next December.

Under the scheme, each home was to receive ₹7.50 lakh, with a subsidy of ₹3.50 lakh, which the beneficiaries had to contribute. Now, if a beneficiary contributes ₹1 lakh, the government will cover ₹3 lakh.

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Additionally, the proposal for immediate release of ₹500 crore to complete 1.82 lakh homes under the Slums Development Board had been agreed upon in the cabinet. The Department has allocated ₹60 crore out of the ₹100 crore proposed for the development of minority colonies, with the remaining ₹40 crore to be utilized for various purposes through the Finance Department.

Naseer Ahmad and Govind Raju, political secretaries to the Chief Minister, as well as Ateeq, the additional principal secretary, Jafar, the finance department secretary, Navin Raj Singh, the housing department secretary, and officials from both departments, were present at this occasion.

The decision to have the government directly fund the beneficiaries for the construction of 1.82 lakh homes under the Slums Development Board was also discussed in the cabinet. Similarly, for the pending 52,000 homes, the government has decided to pay the pending amount directly to the beneficiaries, who will only have to contribute ₹1 lakh.