THIRUVANANTHAPURAM: Exactly a year after the President laid the foundation stone for a Habitat Centre in the capital city, the Housing and Urban Development Corporation (HUDCO) has decided to shelve the project.

This was revealed by Union Minister of State for Housing Kumari Selja in the Lok Sabha on Friday while replying to a question by Chirayinkeezh MP Varkala Radhakrishnan.

Ms. Selja told the House that the construction of the proposed Habitat Centre in Thiruvananthapuram could not take off because the Kerala State Housing Board (KSHB) had failed to execute an agreement with HUDCO.

"It has been reported by HUDCO that the State agency is in default. Hence, HUDCO has decided not to pursue the project for the time being," the Minister said. The ambitious project estimated to cost Rs.60 crores, was aimed at promoting art exhibitions, sculpture shows and cultural activities in the capital city.

It was to be implemented as a joint venture between HUDCO and KSHB. The two agencies had initiated the process of setting up a Special Purpose Vehicle (SPV), a company with equity participation, to implement and run the centre.

A Memorandum of Understanding (MoU) was signed between HUDCO and KSHB last July after President A.P.J. Abdul Kalam laid the foundation stone for the project at a function held at the project site.

The MOU was signed by Regional Chief of HUDCO P. Jaypal and Housing Commissioner and Secretary of the KSHB P.M. John, in the presence of the then Minister for Revenue and Housing, K. M. Mani and the Principal Secretary (Housing and Finance) John Mathai.

The UDF Government later announced that the project would be taken up as a priority item in its `Fast Forward' programme. But despite all this, it failed to take off.

The State Government had earlier identified 3.25 acres of land adjoining the Kowdiar Palace to set up the Habitat Centre. Based on the model of the India Habitat Centre, New Delhi, the complex was designed as an assemblage of habitat-related activities, with a wide variety of facilities ranging from convention facilities, exhibition and art gallery, habitat museum, cultural centre, club, office complex, commercial complex and food courts.

Spread over a built-up area of 3 lakh square feet, the complex was conceived as the first `green' building in the State constructed in accordance with eco-friendly building concepts and environment-friendly building materials. The project was proposed to be completed by 2007.

The decision to shelve the project has sparked off protest from NGOs campaigning for the development of the capital city.

The Capital City Development Forum, the Thiruvananthapuram Residents' Apex Council and the Environment and Development Initiatives Thiruvananthapuram (EDIT) have condemned the failure of the KSHB to finalise the agreement with HUDCO.

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