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PCMC receives state's share for EWS scheme

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The Times of India           27.09.2010

PCMC receives state's share for EWS scheme

PUNE: The Pimpri-Chinchwad Municipal Corporation (PCMC) has received the much-awaited share of the state government in its ambitious housing scheme for the Economically Weaker Section (EWS) being implemented under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Speaking to TOI on Saturday, Neelkanth Poman, computer officer, PCMC, said, "The PCMC has received a cheque of Rs 32.1 crore from the state government yesterday."

The Union government gave primary approval to the PCMC's proposal in 2007 to implement the EWS housing scheme under the JNNURM scheme having a total cost of Rs 449.70 crore. The civic body plans to construct 13,250 tenements as part of the EWS housing scheme where three-room flats will be sold to beneficiaries at the cost of Rs 1.5 lakh.

In the first phase, the corporation will construct 6,720 tenements on 55 acre plot at Sector 17 and 19 in Chikhli along the Spine Road. The construction of 588 tenements have already been completed. The work of 3,444 tenements is in progress in various stages.

The PCMC had received the first installment of the share of the Union government for this project which amounts to Rs 56.2 crore, and was waiting for the state government share. The municipal body had been trying to get the money for the last two years.

Meanwhile, the PCMC had to spend the money on its own, as well as its share in the project. There has been a cost-escalation of Rs 86 crore due to the rise in prices of raw materials. The total construction cost of each tenement was to be Rs 5.89 lakh, which is now Rs 7.17 lakh.

The PCMC general body on September 20 had approved the resolution for increasing the beneficiary share from Rs 1.5 lakh to Rs 3.76 lakh for the houses to be allotted under the EWS housing scheme. A demand will be made to meet this hike to the Union and state governments. If both the governments accept to bear this hike in cost, then the beneficiary be given the benefit. Otherwise, the administration will recover the cost from the beneficiary.

Poman said, "The PCMC was unable to get the second installment of the share from the Union government for this project, as it had not received the first installment from the state government. Now, the path has been cleared to get the second installment from the Centre."

The construction of the houses under the EWS housing scheme is expected to gain momentum after receiving this amount from the state government as it will reduce the burden on the civic body.