25% Affordable Dwellings Constructed With Govt Loans Still Lying Vacant

These units were constructed under three government schemes- Basic Services To Urban Poor (BSUP), Integrated Housing and Slum Development Programme (IHSDP) and Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

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25% Affordable Dwellings Constructed With Govt Loans Still Lying Vacant

Despite the prevailing housing crisis, 25 per cent of affordable dwellings constructed with government loans are still lying vacant, a parliamentary committee has asked the ministry concerned to look into the issue seriously.

The committee that was examining the performance of the Housing and Urban Development Corporation (HUDCO) under the Housing and Urban Affairs Ministry observed that the affordable dwellings were constructed under three government schemes- Basic Services To Urban Poor (BSUP), Integrated Housing and Slum Development Programme (IHSDP) and Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

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HUDCO, a 100 per cent government-owned company, was set up primarily for lending to the social housing sector, and the core urban infrastructure sector in the country. The secretary of the ministry said that Uttar Pradesh, Bihar, Delhi and Madhya Pradesh had the maximum amount of non-occupancy.

The panel noted that in response to its specific query relating to the details of non-occupancy of the affordable dwellings, HUDCO had merely said that the details of the occupancy of the houses were available only with the state governments, and the company’s role was limited to providing just the loan assistance.

The committee felt that the stance taken by HUDCO of remaining unconcerned about the considerable non-occupancy of the houses, particularly when the magnitude of the housing shortage in the country was huge, was unwarranted and defeated the purpose of HUDCO’s mandate for social housing.

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The committee was of the opinion that the company needed to be aware of the situation regarding the non-occupancy of houses constructed with its loans and analyse its possible reasons and accordingly, frame a strategy with the loan availing agencies to ensure that the beneficiaries for whom these houses were constructed, occupied the houses.

The report further stated- ministry may revisit the policy in this regard to explore the measures and taking initiatives so as to have cent per cent occupancy of the affordable dwellings and apprise the committee accordingly along with latest state wise occupancy details.

As far as HUDCO’s joint venture partnership with various real estate and infrastructure projects for implementation are concerned, the committee advised the company to exit these loss-making joint ventures (JVs) as early as possible.

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The committee said that while risk-taking, to some extent, was vital for a company, HUDCO perhaps should have ventured into JVs with appropriate cushioning, as well as an alternate work plan in case of non-receipt of adequate work.

Source Link- https://www.newsclick.in/

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