Tuesday, July 29, 2008

Chasing mirages...


DESARAJU SURYA
Hyderabad: The dream houses promised at affordable rates by the state government continue to remain a "dream" for many prospective buyers as the Rajiv Swagruha scheme is progressing at a snail's pace.
More than a year after the demand survey, the Rajiv Swagruha Corporation Limited (RSCL) is yet to verify and process over 10,700 applications for houses, leaving the applicants anxious.
In all 1,74,774 applications were submitted in 94 urban local bodies of the state for houses under the Swagruha scheme when the demand survey was conducted in April last year. By the end of June this year, as many as 10,707 applications have not yet been verified by the authorities. Greater Hyderabad Municipal Corporation tops the "pending" list with as many as 3615 applications followed by Greater Visakhapatnam (1510), Medak (1233) and Guntur (1142). Unless the verification of applications is done, applicants will not know whether they are eligible for a house under the Swagruha scheme or not. RSCL officials blame the district-level officials for the delay in processing the applications. Besides, the Corporation is awaiting alienation of over 2850 acres of land in 16 districts to take up the housing projects. The empowered committee headed by the Chief Commissioner of Land Administration has approved the land alienation proposals but the respective district Collectors are required to complete the other formalities.
The RSCL has so far launched only four projects while many projects are in the tenders stage. Work on construction of multi-storied buildings has begun around the state capital at Chandanagar (1140 flats), Pocharam (2604 flats), Bandlaguda (3048 flats) and also at Chirala (427 duplex houses) in Prakasam district.
"With the steep escalation in cost of construction materials, we are inviting fresh tenders on e-procurement basis for other projects after revising the standard schedule of rates," a senior RSCL official said. However, mounting construction costs are adding to the worry of the applicants.
"Given the progress of the projects, we fear the costs will rise further by the time the Swagruha authorities actually begin the works. Unless the RSCL gives us a clear plan, we can't obtain loan from banks," an applicant K Ravichandra lamented.
Unless the RSCL steps up its act, the hapless applicants will be left with no other option except dreaming.
The government had to give up its plan to build independent houses in municipalities due to scarcity of land and now it will construction sky-rises even in smaller towns. For example, a G+9 structure will be built in Anantapur town in 11 acres while a G+20 structure is being planned at Bachupalli. In other towns, G+14 structures will be constructed since land is in short supply, sources in the Rajiv Swagruha Corporation (RSC) said.
While over 10,000 acres of land is required to complete the project as envisaged, authorities could so far identify only 7600 acres of which only 1023 acres has been handed over to the Corporation. With land in severe short supply, the government is now speaking of acquiring land even from private persons to accomplish the Swagruha dream project.
Land acquisition, particularly from private owners, will obviously push the costs up and may well lead to additional burden on buyers. With construction material costs too fluctuating constantly, the RSCL authorities are unable to fix the rates for the flats, leaving the applicants anxious.
The Swagruha scheme that is meant to provide housing for the "moderate income group" at an "affordable" rate, is also literally scaring the prospective buyers away, because of the faulty priorities of the officials concerned. The scheme has been especially designed to cater to the growing housing needs of the middle-class people and provide them houses at a price 25 per cent lesser than the prevailing market rates. But the overzealousness being shown by officials of the Rajiv Swagruha Corporation Limited (RSCL) -- a Special Purpose Vehicle floated by the state government to implement the scheme -- seems to be defeating the very purpose of the scheme. In the name of providing "international-class" facilities, rather than focusing on the basic housing needs, the Swagruha Corporation is allegedly following in the footsteps of private realtors, thereby denying any cost advantage to prospective buyers.
"We thought normal apartments or houses will be built under Swagruha but the designs prepared by the RSCL are scaring us away. They are no doubt impressive but all that will put extra financial burden on us," an applicant D Ramesh Babu said.
Landscaping, walkways and such 'common' things apart, the projects designed by RSCL also contain high-end facilities like swimming pool, club house, amphitheatre and malls.
Hospitals, schools, entertainment centres, parks and playgrounds are other amenities that are planned to be developed. With land values already sky-high and prices of vital inputs like cement and steel steeply rising, there is widespread apprehension that any "add-on" feature will only push the overall project cost further up. Since the RSCL is virtually a real-estate company floated by the state government, the costs will have to be ultimately borne by the buyers, it is feared.
"Of course, such facilities will not be common in our every venture. They will be layout-specific depending on the availability of land," a senior official of the RSCL pointed out.
However, the authorities could not so far finalise rates of flats in the ventures taken up around Hyderabad in places like Pocharam, Bachupally and Kondapur.
RSCL officials say buyers need not pay anything extra for such facilities as the ventures will be commercialised. Profits earned from such ventures will reduce the overall cost of flats and ease the burden on buyers, they contend.

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