CONSTRUCTION OF DOUBLE BED ROOM HOUSES .... Chief Minister K Chandrashekhar Rao Statement in TS Legislative Assembly

CONSTRUCTION OF DOUBLE BED ROOM HOUSES

Chief Minister K Chandrashekhar Rao

Statement in TS Legislative Assembly

27-12-2016

Economically Weaker Sections Housing scheme was in vogue for the past several decades offering permanent shelter to the shelter less. In the erstwhile Andhra Pradesh State till 2003, about 17 Lakh 34 thousand and 826 houses were constructed at an estimate cost of Rs 1805. 26 Crore as part of this scheme

The then AP Government records state that between 2004 and 2014, about 24 lakh 91 thousand and 870 houses were constructed for the poor at a cost of Rs 9075 Crore.  Under Rajiv Swagruha, at a cost of Rs 1621 Crore about 12089 houses and under Rajiv Gruhakalpa, at a cost of Rs 392 Crore about 37217 houses were also constructed as per the records.

Within the GHMC vicinity, under JNURM Scheme, 46519 houses and as part of VAMBAY scheme 6608 houses were constructed as per the government records. This would mean by the time Telangana state was formed, in Telangana 43 Lakh 29 thousand and 124 houses were said to have been constructed for the economically weaker sections in the State. If this be true, there would not have been any family left in the State without any house! Therefore there would not have been any need for construction of any new house for the poor! But the ground realities are different. Even now, lakhs of poor people are applying to the government for provision of houses. This has amply proved that the construction of houses did not happen as per the records and the money spent for the so-called construction of houses for the poor went into the pockets of the corrupt.

The housing Scheme, which had its roots as a welfare measure for the needy people changed its path and ended up becoming a source of exploitation and illegitimate income for the leaders and activists of political parties. This was particularly on the increase during 2004 and 2014 in the United AP State if one examines the amount of corruption took place during the same period. The number of houses that were said to have been constructed according to the bills passed was not found on the ground. There were umpteen numbers of incidents where people have claimed bills on the construction of houses which were more than the entire household in a village.

For instance, in Manthani Assembly Constituency, bills for the construction of houses stood at 40 percent more the actual families! These overestimated houses were sanctioned and bills were paid. This is a classic example of wild corruption. The then government itself had ordered an inquiry into the nexus between the politicians and the officials and the inquiry established the irregularities and corruption. A Third party inquiry was also held.

Between 2004 and 2014, criminal cases were registered against 225 persons for committing irregularities under Indiramma Housing Scheme. Among the accused, there were 122 officials, 133 middlemen and politicians.  One ZPTC member, three MPTC members, 14 Sarpanches, three Single window Chairmen were proved to be partners of the scam as per the then government findings. 1, 94, 519 ineligible persons found to be allotted houses under the scheme. About Rs 235.90 Crore was paid to about 1, 04, 000 persons. 512 officials from the Housing Department were dismissed from the service and another 140 were suspended. Of this 122 officials were convicted and about Rs 2.86 Crore were recovered. In order to bring out the corrupt practices took place under the united AP State, the Telangana state government had ordered a CBCID inquiry on July 26, 2014 on the scam which is still going on.

While the inquiry was on, on the houses constructed under Indiramma Housing Scheme, we have decided not to harm the poor people who have constructed houses under the scheme. Hence we have instructed the District Collectors to conduct a survey and identify the genuine beneficiaries. The revenue officials conducted a survey in the villages and found that there were about 1, 19, 00 bogus beneficiaries. About 2, 46,170 were listed as genuine beneficiaries. Of this, about 56,059 houses were totally constructed and about 2, 04,000 houses are in various stages of completion. We paid Rs. 369.48 Crores of rupees for Indiramma houses till now since we came to power. After completion of Indiramma houses Rs. 1,159.85 crores are to be paid. Government is ready to pay them. We would like to place this information before the House that the Government is paying bills to the houses which are in construction stage and which were sanctioned prior to 2014.

The Government has resolved to implement this scheme without giving scope to political corruption and to accomplish the desires of poor people in the state of Telangana, which was carved only through people movement. It is troublesome for entire family to live in one room. In these houses the problems that are faced by women are beyond description. With the intention that this situation should not be there, we gave an assurance to give constructed Double bed room houses to poor in our Election Manifesto. Our Government set aside the policy of construction of houses by way of some amount as subsidy by Government and rest to be borne by beneficiary. Our Scheme was designed in such a manner that not a single penny will be spent by beneficiary. Government took the entire responsibility of constructing houses. Due to this, the expenditure for construction of houses for weaker sections grew many folds compared to the expenditure that is incurred by erstwhile Governments. For the construction of double bedroom houses in 560 square feet Rs. 5,04,000/- was allocated in villages, Rs. 5,30,000/- was allocated in towns and within GHMC limits Rs. 7 lakhs was allocated.

When compared to earlier stage constructions long ago, the expenditure for house construction increased many times. In addition to budgetary allocation we sought financial assistance from various financial institutions. I am submitting to the house that State Government has mobilized Rs. 17,660 Crores required for house construction. In two years, we allocated Rs. 1433 Crores of rupees in state Government Budget. From centre also, Rs. 333 Crores were sanctioned for house construction schemes. Central and State Government pooled Rs. 1766 crores of rupees, HUDCO agreed to give Rs. 3344.76 crores last year and this year Rs. 12,549 Crores, totaling 15,893.76 Crores. All together Rs. 17,660.40 Crores were pooled and are ready for construction of houses. While the erstwhile Government spent Only Rs. 11000 Crores for house construction till Telangana was formed, we in two and half years allocated Rs. 17,660 Crores.

If we analyze deeply the policy followed by earlier Governments in the matter of house construction for Weaker Sections, it is evident that, the poor were not largely benefited. It was only as namesake that the Government built the houses and allotted to poor and in effect the entire burden was on weaker sections only. In the incurred expenditure, the beneficiary spent huge amounts than the amount actually spent by Government. These facts will be clearly seen if we observe the Housing Scheme from the beginning.

In 1974, Hutting Scheme was in Vogue. Then for construction of Hut, Government gave Rs. 400. By 1978, it gave Rs. 1000/- under semi permanent House Scheme per house. In 1983, construction of pucca houses started. From this the stage began wherein the Government gave some amount as subsidy, and the rest of expenditure was to be borne by the beneficiary. In 1983, in rural areas, Rs. 6000/- expenditure was estimated for the construction of every house. Out of this amount Government used to subsidize Rs.2750/- as its share. The beneficiary had to bear to Rs. 3250/- i.e., Rs. 3000/- by way of Bank Loan and Rs. 250/- by way of his own contribution. That shows that 54% of cost was to be borne by beneficiary and that of Government was only 46%. The burden on the beneficiary increased from then onwards. In 2004, unit cost was Rs. 22,500/-. In this, the subsidy of Government was Rs. 7000/- the beneficiary had to borne Rs.15, 500/-. This would mean that the beneficiary was bearing 68.8% while Government was contributing only 31.2%. In 2014, the unit cost was decided at Rs. 70,000/-. In this, Government subsidy was Rs. 20,500/-. The beneficiary had to borne Rs.49, 500/-. That means the beneficiary was bearing 70.7% while Government was contributing only 29.3%.

The erstwhile Government proudly declared that it had constructed houses with Rs. 1 lakh cost for SC’s, and Rs. 1, 05,000/- for ST’s. In case of both SC’s, ST’s also, the burden was on beneficiary. In case of SC’s, the unit cost per house was Rs. 1 lakh and Government borne only Rs. 20,500/-.  The remaining burden i.e., Rs. 79,500/- fell on the beneficiary. That means SC beneficiary borne 79.5% while the subsidy given by Government was only 20.5%. In case of ST’s same policy was implemented. In unit cost of Rs.1, 05, 000/- the beneficiary borne Rs. 84,500/- while the subsidy from the Government was Rs. 20,500/-. That means 80.47% burden was on ST beneficiary while Government borne only 19.53%. From 1983 to 2014, in rural areas the Weaker Sections borne 72% of expenditure for their house and Government gave only 28% in form of subsidy. While the situation in rural areas was like this, the burden that fell on beneficiaries in urban areas was much more. From 1983 to 2014 the burden that fell on beneficiary in urban areas was 90% while the subsidy given by Government was only 10%. If we analyze the whole issue it is clearly seen that more burden was on people and the publicity was that they were weaker sections housing built by Government.

Unable to understand the above facts, the poor people came forward with a hope that Government is constructing houses for them. By bearing additional burden, they were pushed in to debts. The poor were in dilemma, as they had to pay the interest along with actual amount. For recovering the Bank Loans, the Government officials used to take away the doors. We were all witness to the incidents where people used to lock their houses on hearing that officials were coming. The housing scheme instead of providing shelter to the poor had made them debtors and the scheme had become to defame them. (During reply to the discussion CM announced waiver of Rs. 3920 Crores of dues pertaining to Indiramma houses amidst applause of Members)

Against this background our Government decided that these problems should not be there for the poor people. In the double bed room scheme the Government is constructing houses and giving it to poor with Government bearing 100% expenditure and not a single penny has to be borne by the poor. At this juncture, this August House should note that, if this scheme also slips in to the hands of corrupt people, there is every danger that large amount of public money being misappropriated.

Hence, the State Government initiated many reforms in this whole process. Without giving scope to corruption stringent Rules were framed. The modalities were formulated in such a way that selection is to be done in transparent way. Earlier there used to be different quotas namely, in-charge Minister Quota, MLA quota and so on. This quota system is now done away. With this we also have done away with political intervention completely. MLA will select the village in their respective constituencies, while the beneficiaries in villages will be decided by district administration under the chairmanship of Collector.

The process begins with receiving of applications, their thorough scrutiny followed by discussion with people in Grama Sabha for approval of beneficiaries. If the applications received are more than the houses sanctioned in a village, then lottery system will be followed.

Construction of houses will be done with quality parameters. The ideals of Government would be adhered. For this purpose, we requested the Collectors to handover the construction of houses to experienced and capable construction engineering sections. The Collectors had selected the suitable places for double bedroom houses colony. So far we had sanctioned 2, 60,000 houses. The tender process is going on. Tenders were finalized for 14,224 houses. 1217 houses were constructed. People are residing in them. At present 9588 houses are in construction stage at various places in the state.

I would like to present before the august house one fact. The contractors are hesitating to file tenders for double bedroom houses, because of two reasons. One reason is that the Mission Kakatiya, Mission Bhagiratha, Irrigation projects, Roads construction implemented by State Government are going on full-fledged and these contractors are involved in them. Many other working agencies in the state are also involved in these activities. Secondly, the scope for profit in construction of Double Bed Room house is not enough. Hence they are hesitating a bit.

In order to overcome these situations, Government has initiated suitable measures. We are exploring alternatives. We are supplying sand necessary for house construction free of cost. Without concern about Market prices, we entered into MOU with 31 companies to give cement at Rs.230/-. This Government is with strong resolve to complete the construction as contemplated. I would like to tell the house that Government is fully committed to construct the houses that will showcase the self respect of people in Telangana State which itself was achieved to upkeep the same self respect.