Bank Loans To Applicants Have Not Gone Beyond 20% So Far The state government’s ambitious move to scale up the affordable housing project from 1.25 lakh homes to five lakh houses has boomerang, putting the government in a fix. Slated to be one of the biggest housing schemes in the country, the project is now in chaos with builder backing out, work delayed, including shelving of some sub projects, and applicants canceling their allotments. In 2009, the Rajasthan government drafted the policy for 1.25 lakh homes and later scaled it up targeting a construction for five lakh home in the following five years. To achieve the target, the government fixed the quota of 18,000 homes for the housing board, another 10,000 for the urban improvement trust (UIT) and 5,000 for private players initially. These were revised later and five different models were developed to provide shelter to every slum dweller. However, the ambitious programme of the government seems to be unrealistic given the challenges that have slowed down construction work. Banking finance to applicants has not reached beyond 20%. The delay in declaring transfer development rates and the stay on section 90B for land conversion proved to be the biggest hurdles for the project. Out of the five lakh houses to be developed, 1.5 lakh houses have either been constructed, plots allotted or the flats approved, a government official claimed, adding that some sub projects are sanctioned but not yet take up. According to the government figures, a total of 85,000 houses have been taken up, 14,900 plots allotted, 16,400 group housing projects approved and 33,970 houses sanctioned but not taken up. Urban Development and Housing (UDH) minister Shanti Dhariwal said, “ Initially, there is always a hurdle for any project to take off . The policies have been changed and rates have been revised , the work will be expedited.” But the ground reality is quite different as the target of providing possessions of these houses seems to be a distant dream. The Jaipur Development Authority (JDA) has to develop around 77,000 affordable houses in five years under various modules. The authority claims to have constructed around 5,600 houses in module I. However, possessions to allottees have not given. “As the Transfer Development Rate (TDR) policy has not been given the developers, they are hesitant to give possession of the constructed houses as later they might face a problem if the government changes,” a source in the JDA said. Financing remains a major challenge too for the government. “Banks are not approving the loans. Till date, banking finance to the applicants has not gone beyond 20% even though the government assured the banks to minimize their risk” a senior official involved in the project said. Attempts were also made to float a joint venture company for financing people falling under the income bracket of Rs 8,000 to Rs 20,000 per month. But after viewing the progress of the company, International Finance Corporation (IFC), the National Housing Bank (NHB) opted out from the joint venture. However,the official added, “It is wrong to say that project is not doing well. In fact, 25,000 people are already living under the scheme number 5. Also, the housing board has given possession to some while they are ready with 21,000 homes.” To bridge the gap, the state government had earlier decided to add the houses constructed under the Rajiv Awas Yojna scheme. However, with the amendment made by the Centre to get project plans approved before launching has affected the state’s planning. Times View P oliticians in a democratic set-up usually play to the gallery and woo the vote bank. In reality, some projects they propose are not realistic and face a raw deal on ground zero. The affordable housing scheme is one example. Banks’ finance to applicants in the scheme has not gone beyond 20%. The delay in declaring transfer development rates and the stay on Section 90B for land conversion proved to be the biggest hurdles for the project. Now, the government is facing the heat for not having assessed the situation and without taking the loan facilitators into consideration. In an election year, this could be a bad patch for the government and may dent its political fortunes.