CHENNAI: The Housing and Urban Development Department’s plan to convert 20,000 huts or mud houses of economically weaker sections (EWS) into green houses with a concrete roof and solar power, has suffered a blow due to failure by Tamil Nadu Slum Clearance Board to sell transferable development rights (TDRs) in the market to repay loan obtained from Housing and Urban Development Corporation (HUDCO).
It is learnt that the scheme was launched after HUDCO agreed to give Rs 420 crore loan which has to be repaid at periodic intervals for the next 15 years following the guarantee by the State government to repay the loan by selling the TDR certificates in the market.
The Slum Clearance Board obtained the TDRs for the tenements constructed under resettlement programme for Rs 194.46 crore from Chennai Metropolitan Development Authority for sale in the market.
Interestingly, with the State hardly having any concrete mechanism or an agency wherein the TDRs could be sold or exchanged, the loan could not be repaid at periodic intervals.
The government had initially gone in for a loan of Rs 210 crore from HUDCO to build 10,000 houses.
Since Slum Clearance Board had no earnings from the scheme, the interest due to HUDCO (Rs 3.98 crore) for the quarter ending May 31, 2016 and August 31, 2016, was paid from Housing Board’s fund.
Initially, a loan of Rs 90 crore was obtained on March 1, 2016 at 8.78 per cent interest under first instalment and second instalment of Rs 42 crore was released on February 13, 2017. The pending `78 crore is still awaited.
As a result, slum clearance board has urged the government to pay budgetary support to repay the loan amount and interest to HUDCO and restrict the loan to Rs 132 crore instead of the initially availed loan of Rs 420 crore.
Sources told Express that since Rs 78 crore more is required to build the 10,000 green homes, the State government has agreed to repay the loan. Similarly, another 10,000 green houses will be built using the funds under housing for all. This includes Central assistance of `150 crore and `60 crore grant from State government.
Factfile
TN proposes to build 20,000 green homes for poor using loan from Hudco
Under the scheme, a financial assistance of Rs 2.1 lakh each will be provided to 20,000 economically weaker families in town panchayats to convert huts or mud houses into green houses
Each house will have concrete roof and solar power
The solar-powered lighting system in the green houses shall be installed by Tamil Nadu Energy Development Agency (TEDA)
Each house will have a living room, bedroom, kitchen and toilet besides a rain water harvesting structure
The designs proposed are flexible and plinth area of the house will not exceed 360 sq.ft
Scheme will benefit SC (29per cent), ST (1 per cent) & others (70 per cent). Diff-abled may get 3per cent