The Hindu               04.01.2014

State to set up housing risk fund

Staff Reporter

The State government will set up a State Housing Risk Fund for low-income groups to mitigate credit risks in loans for housing, Governor Nikhil Kumar said in his address to the Assembly here on Friday.

The estimated shortage of 12 lakh houses in the State could be addressed by strengthening existing schemes such as Saphalyam, Grihashree, Anugraha, and Sowbhagya.

These would be supplemented by another plan to provide 5,000 houses through a loan of Rs.195 crore from the Housing and Urban Development Corporation, Mr. Nikhil Kumar said.

The development of Scheduled Caste colonies would be a priority area in 2014-15. The government planned to adopt an additional 50 colonies under the Self-sufficient Colony Scheme and initiate a special drive to ensure that housing construction projects taken up by various departments were completed in time. Providing land for the landless and houses for those without it was a major concern, Mr. Nikhil Kumar said.

The Governor said the government planned to build 60,000 houses under the Indira Awaas Yojana of the Union Ministry of Rural Development.

The State would expedite the allocation of funds, Rs. 50,000 per house, the rest of which would be met by the panchayats, he said.

The first phase of construction of the Laurie Baker International School of Habitat Studies would also commence shortly.

The Kerala State Housing Development Finance Corporation would be involved more in mobilising funds for the housing sector development activities.

The government was also in the process of amending the Kerala Building (Lease and Rent Control) Act, the Governor said.

The Hindu               04.01.2014

BBMP looking at selling some leased properties at market price: Mayor

Staff Reporter

Mayor B.S. Sathyanarayana said here on Friday that the Bruhat Bangalore Mahanagara Palike would urge the government to provide special grants totalling Rs. 1,000 crore over the next three years as it will “help the BBMP to close loans and clear the pending bills and become financially stable.”

He also said: “The BBMP is now looking at leased properties. Some properties may be sold at market rate, which will bring some revenue to the civic body. We will seek government’s approval for the same.” He added that there were many properties whose lease periods have expired. The officials have been directed to prepare a list of leased properties.

The BBMP has already pledged Krishna Rajendra Market and Public Utility Building with the HUDCO (Housing and Urban Development Corporation) towards “loan restructuring” i.e. closing some loans with high interest rates by borrowing at low interest rates.

The Mayor announced that soon a memorandum of understanding would be signed with corporates for maintenance of BBMP’s parks, lakes and hospitals. “We have asked the Chief Minister to give us a date to hold a summit for the purpose at Freedom Park,” he added.

The Bruhat Bangalore Mahanagara Palike has outstanding loans totalling more than Rs. 3,500 crore and pending bills totalling Rs. 1,600 crore.

The civic body’s main revenue source is property tax. Though there are over 16 lakh properties in the city and the tax target is over Rs. 2,000 cr., the BBMP has been able to garner only Rs. 1,300 crore. Though there are over six lakh traders with commercial tax licence, only around 40,000 trade licences have been issued by the BBMP.

Civic body to seek Rs. 1,000 crore special grants from government.