The Hindu : Andhra Pradesh / Hyderabad News : State to tap private aid for Indiramma

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Andhra Pradesh

Andhra Pradesh - Hyderabad

State to tap private aid for Indiramma

Special correspondent

HYDERABAD: The government has decided to involve private financial agencies for extending loans to beneficiaries of Indiramma housing programme in urban areas on low interest.

The Cabinet Sub-Committee on Indiramma, headed by Finance Minister K. Rosaiah, which met here on Saturday, noted that private agencies had to be tapped for loans as there were limited number of nationalised banks in some urban areas.

For example, there were only two nationalised banks at Mangalagiri in Guntur district as against a demand for construction of 10,000 housing units . The two branches alone could not provide the required funds.

Additional funds

Briefing reporters later, Housing Minister B. Satyanarayana said already four private agencies expressed interest to advance loans under Indiramma. More agencies were in pipeline. He said the meeting resolved to integrate the construction of individual latrines with dwelling units by releasing the required additional funds through Housing Department.

The unit cost inclusive of a latrine would now go up to Rs. 50,000 in villages and Rs. 70,000 in urban areas. As against this, the government would contribute Rs. 34,250 for dwelling units in rural areas and Rs. 46,000 for those in towns, with the balance amount being arranged through bank tie-ups.

He said 52.2 per cent of the 20 lakh houses taken up under Indiramma-I had been completed, while 37.07 per cent were in progress and 17.67 per cent were yet to start.

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