The government's Life Mission housing initiative has encountered significant setbacks due to surging steel prices. With construction costs now exceeding original estimates by over 50%, contractors are halting projects and seeking increased funding. Out of 29 sanctioned apartment complexes, only four are complete. Furthermore, the recent Life 2020 phase has only reached housing agreements with 16.34% of eligible families. Financial challenges, including local bodies' inability to provide bank guarantees for necessary loans, add to the project's complexities. Immediate resolutions are imperative for the mission's success.
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In a recent turn of events, the government's ambitious Life Mission housing project faces significant delays due to the soaring prices of essential raw materials, especially steel. The swelling construction costs have left contractors clamouring for more funds, causing many ongoing projects to stall.
An internal government report, prepped for last week's project review meeting, indicates that the steel prices, a primary component in prefab apartment construction, have surged dramatically. This price hike has pushed construction costs to soar by over 50% of the initial estimates, leading contractors to halt work on many sites.
As of now, only four out of the sanctioned 29 apartment complexes have reached completion, with these being located in Punalur (Kollam), Karimannur (Idukki), Vijayapuram (Kottayam), and Kadambur (Kannur). Collectively, these complexes house 174 families. The other 25 complexes, intended for 1201 families, remain in various stages of construction, with many just at the foundational phase.
The financial ramifications of this issue on the state treasury have prompted the government to convene a technical committee under the leadership of the Chief Engineer of the LSG department. This committee has provided vital recommendations on addressing the escalating costs, which are currently under the government's scrutiny.
The Life Mission's endeavours to provide individual houses have similarly seen sluggish progress. During the latest phase, dubbed Life 2020, out of the 3,69,262 qualified families, housing agreements have been reached with merely 60,346 (16.34%). The mission proposes to offer Rs 4 lakh per beneficiary for individual houses, disbursed in multiple payments. Based on government projections, a whopping Rs 14,406.88 crore will be needed to fulfil the commitments to all eligible participants in the Life Mission project.
Breaking down this financial need: Rs 3,300 crore comes from the government's purse, local bodies contribute Rs 3,329.88 crore, while a significant Rs 7,777 crore is expected as loans by the local bodies. The Kerala Bank is set to provide these loans. However, there's a snag: local bodies are required to furnish bank guarantees, which can be in the form of assets or their own funds. With most local entities either lacking proper asset documentation or adequate funds, this requirement presents yet another hindrance to the mission's seamless progression.
In conclusion, The Life Mission project, envisioned as a beacon of hope for thousands, now stands at a crossroads. Soaring raw material prices, coupled with financial constraints at the local level, have hindered its progress. Decisive actions and strategic solutions will be crucial for this initiative to achieve its intended milestones.
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