INDORE: Indore Municipal Corporation (IMC) has accomplished the construction of around 1916 houses for the low-income group under the JNNURM project.

The houses are ready for giving accommodation to the eligible
contenders. As per the JNNURM project, the civic body was expected to
construct around 5000 houses for the low-income group but it managed to
construct only 1916 houses.

Citing the reason, mayor Krishna
Murari Moghe said that the escalation in cost of the project resulted in
not meeting the goal. The project was approved at the cost of Rs 1.50
lakh per unit on each house, but now the cost of per unit has escalated
to Rs 3.75 lakh. As union government releases fund only in accordance
with the cost sanctioned at the time of approval, the civic body has to
bear the escalated cost of the project.

On the cost escalation of the project, minister Babulal Gaur
said that state government will consider the increasing financial
burden over the civic body. He also said that union government has
extended the deadline of the project for another two years.

According to urban administration development ministry, Madhya Pradesh
was expected to construct around 40,000 houses in all, out of which
only 26,000 houses have been constructed in Indore, Bhopal, Jabalpur and
Ujjain under the project.