CHENNAI: The Tamil Nadu Housing Board is planning to raise funds to the tune of Rs 682 crore by selling 1,779 residential flats under the Self-Financing Scheme.
The flats will be constructed after demolishing 2,238 flats located at 17 places in Chennai.
Sources said 4,691 flats will be constructed by the board, of which 2912 will be under the Tamil Nadu Government Rental Housing Scheme and the rest will be developed under the self-financing scheme.
The plan is to sell the 1,779 flats, which is being constructed at nine places in Chennai, at a price of Rs 5,000 per square feet, including land, development and construction cost works out to Rs 682 crore.
The sale of flats would help generate funds without expecting grants from the government. It is learnt that the total cost of building 2,912 flats under the Tamil Nadu Government Rental Housing Scheme (TNGRHS) would cost Rs 380 crore while those of 1,779 residential flats under the self- financing scheme would cost Rs 300 crore.
This would tantamount to Rs 680 crore which is less than the value of sale of 1,779 flats under the Self Financing Scheme.
It is learnt that the housing board would be utilising the maximum permissible floor space index (FSI) of 1.5 to construct additional 30 per cent of TNGRHS flats. The earlier flats in RK Mutt scheme were constructed by utilising an FSI of 0.37.