Telangana offers 50:50 share to 2BHK builders

Hyderabad: TS government is trying to attract builders with a lure of 50:50 share of the 2BHK houses in GHMC limits. The government has announced plans to construct one lakh 2BHK houses for the poor in the city this year but builders are not coming forward, saying that  the unit cost of Rs 7 lakh offered by government was financially unviable.

The government has put forth a proposal before the builders, allowing them to sell 50 per cent of the flats and give remaining 50 per cent to the poor.

The builders can construct separate blocks for the poor and other buyers, lay separate roads and even increase the built-up area of the flats to meet the needs of their buyers.

Ahead of the GHMC elections in February, the government had hurriedly laid foundations for construction of 2BHK houses at 15 locations in the city but no tender has been finalised so far. Despite the government issuing re-tenders, there has been poor response from contractors.

IT minister K.T. Rama Rao, who assumed charge as municipal minister soon after GHMC elections, has stepped up efforts to speed up 2BHK houses.

The TS government has announced it would build a total of 2.60 lakh 2BHKs in entire state this year. However, no amount has been allotted in the Budget this year since the government has decided to secure a Rs 13,000 crore loan from HUDCO and other financial institutions.

But officials brought to the notice of government that depending entirely on loans would impose a heavy interest burden. With this, the government has come out with alternative plans to take the project forward.

In the meeting convened with various construction companies recently, the government proposed to share flats with the builders in the ratio of 50:50. Under this, the government will provide land and builders will be allowed to construct flats for both poor and paying clients in different blocks.

They will be allowed to sell the paid-for flats as per market rates. This will make government investment on 2BHK project ‘zero’. The other offer made was paying contractors on annuity basis for a period ranging from 10 to 15 years.

However, the contractors are learnt to be in favour of sharing flats and the modalities would be worked out during the next round of meeting this month.

An housing official said, “We expect to break the deadlock this month and speed up construction of 2BHK houses. The Centre grants Rs 1.50 lakh to each house, which would be utilised to provide infrastructure facilities in these colonies.”