The Hindu : Front Page : Recession hits Rajiv Swagruha scheme

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Tuesday, Oct 20, 2009
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Recession hits Rajiv Swagruha scheme

Special Correspondent

HYDERABAD: The global economic slowdown had a telling impact on Rajiv Swagruha, the middle-class housing scheme, launched by the Y.S. Rajasekhara Reddy government.

While land acquisition problems are plaguing the launch of works in several districts, several persons who applied for the houses under the scheme expressed a desire to withdraw their applications. According to Rajiv Swagruha Corporation Senior General Manager (Marketing) M. Bharat Reddy, 500 applicants had decided to withdraw their applications so far.

The corporation, he said, received 1.76 lakh applications for the housing projects initially, but the high number was because of the confusion about the details of Rajiv Swagruha, aimed at catering to the middle class, and Rajiv Gruha Kalpa, the weaker section housing scheme, which involved several subsidies from the government. The corporation was mandated to construct and provide houses to middle class people at prices 25 per cent lesser than the prevailing market rates under Rajiv Swagruha.

First phase completed

Accordingly, it had completed the first phase of the venture involving 1,140 flats in Chandanagar on the city outskirts. While 90 allottees had been given flats of their choice following payment of the entire amount in one go, the corporation would conduct lottery on Tuesday to allot flats to 904 others. The remaining 230-odd flats were being offered at higher prices as they were ready to be occupied. Given the facilities incorporated in the venture, including water supply and electricity services, the corporation had revised prices of single bedroom flat from Rs. 7 lakh to Rs. 7.95 lakh and double bedroom flat from Rs. 10.30 lakh to Rs. 12.2 lakh. He asserted that there were no hidden costs in the entire venture and the prices were 39 per cent and 37 per cent less than the prevailing rates even after revision.

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