Executing the flagship programme ‘housing for all’ by 2022 through the Pradhan Mantri Awas Yojana (PMAY) of the Centre, the Pune Municipal Corporation (PMC) has proposed making budgetary provisions for it as they predict increased expenditure on the project, considering the rising prices of construction material due to increasing fuel prices.
In a proposal tabled in the City Improvement Committee, the civic administration said that the cost of the property has been finalised by the central selection and monitoring committee (CSMC), while approving the projects.
“The project cost might increase in the future due to the daily hike in diesel prices which would lead to rise in the prices of construction material. The amount to be paid to the contractor and the consultants for the project would also increase. Thus, the increase in property cost cannot be ruled out. But, the increased amount cannot be recovered from the beneficiaries and it is necessary for the PMC to make provision in annual civic budget to cater to the likely increase in project cost so that the additional expenditure is met,” it said.
The Union government would be giving financial assistance of Rs 1.5 lakh per house, while the state government will contribute additional Rs one lakh per house of 30 sq meter, under the Pradhan Mantri Awas Yojana.
PMC has so far planned the construction of 6,264 houses at eight different locations at a total estimated cost of Rs 699 crore.
Municipal Commissioner Saurabh Rao has sought the permission of the committee for powers to handover the houses to the identified eligible beneficiaries in civic limits for the Pradhan Mantri Awas Yojana.
PMC is constructing the houses on the land reserved for the Economically Weaker Section (EWS) and Housing for Dishoused (HDH) and the municipal commissioner should be given powers for deciding from the alternatives available for the development of the structures.
“The municipal commissioner should be given powers for fulfilling the technical norms for the project and allotment of houses to the beneficiaries,” the proposal said.
It further said that the state government has made the provisions of Maharashtra Real Estate Regulatory Authority (RERA) applicable for the project of Pradhan Mantri Awas Yojana so the municipal commissioner should be registered as promoters and builders with the RERA for the development of residential buildings.