The Hindu : Tamil Nadu News : TNHB to focus on self-financing scheme

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Friday, Dec 28, 2007
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Tamil Nadu

Tamil Nadu

TNHB to focus on self-financing scheme

T. Ramakrishnan

Next year, it will build around 2,000 flats under the concept

CHENNAI: The self-financing concept is going to be the thrust area of the “debt-free” Tamil Nadu Housing Board in building houses for people of all income groups, according to P. Rama Mohan Rao, its chairman-cum-managing director.

Next year, the Board will build around 2,000 flats under the concept, of which 1,000 will be in and around Chennai. At present, it is constructing about 330 such flats, of which 88 flats are in Tiruneveli town; 86 in Hosur and 80 in Chennai’s Villivakkam and Mogappair.

How it works

Under this scheme, allottees bear the cost of construction of flats assigned to them. The allottees pay 10 per cent of the cost at the time of allotment, 60 per cent in two instalments over six months, 20 per cent in the eighth month and the rest at the time of taking possession.

Conventional system

This is unlike in the conventional system, where allottees make their payments over eight to 20 years depending upon the economic group to which they belong.

Freeze in cost and avoiding time overrun are among the features of the scheme, the CMD says.

The Board is involving the allottees in monitoring the execution of the projects. “We would like allottees to form a committee for monitoring the progress. Through this process, quality construction and transparency are ensured.”

\At the time of allotment of flats, the Board intimates bankers for initiating the process of issuing loans to allottees.

Pointing out that his organisation has cleared all the debts, he says the Board made, in late November, the final contribution of Rs.20 crore to the Pension Fund towards securitisation of pension. Totally, it contributed Rs.220 crore.

In the current financial year, the Board, through sale of plots/flats and monthly instalment schemes, earned Rs.300 crore.

It is likely to get Rs.100 crore more by March end. It will earmark a major share of revenue for acquiring land.

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