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This refers to the article “Housing Board going through a tough phase” in `PropertyPlus’ (issue dated October 13, 2007) wherein my views have been misquoted in the last paragraph and the same may be rectified as follows:
It may be seen that the Housing Board has defaulted its repayment to the tune of Rs.240 crore to HUDCO as on September 2007 and it is running with a revenue deficit of Rs.359.17 crore as per Review of Pubic Enterprises Report for 2005-2006.
The State government, it now seems, went back from its commitment to provide financial assistance regarding any shortfall (till 2014) in the repayment by the board to HUDCO as per the cash flow statement attached to the MoU signed in September 2002 by the government, HUDCO and the board and also is reluctant to provide necessary borrowing sanction and guarantee for raising project loans by the board.
During the last Five Year Plan period (2002-2007), a sum of Rs.300 crore was provided to the board to fulfil its commitment whereas no ‘Plan’ assistance was seen provided in this year’s (2007-08) State budget which virtually put the board in a dilemma.
It is under these circumstances I expressed the view that the Housing Board should be permitted to develop and use its high-valued government-assigned properties on Marine Drive in Ernakulam and in Thiruvananthapuram on the lines of the GIDA model or as a public-private-partnership investment venture which suited the purpose assigned by the government or for mutually agreed project purposes so that the outright benefits/returns could be immediately used to set off the board’s liabilities and to finance the ongoing projects and also to take up ambitious new projects.
The proposal for ‘mere selling of land at market rate’ will not serve the interest of the board which I had not, in any way, expressed.
E. Sankaran Potty,
General secretary, Kerala State Housing Board Employees Association
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