Press Information Bureau
Government of India
Ministry of Housing and Urban Poverty Alleviation
13-December-2011 16:42 IST
Construction of Houses Under BSUP and IHSDP

The Minister for Housing and Urban Poverty Alleviation Kumari Selja has said that the reasons for delay in construction of houses under Basic Services for Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) among other things are as under:

(i) Lack of capacity/financial resources at the local/state levels – inability of urban local bodies to meet their share in particular,

(ii) Difficulties in making slum residents temporarily relocate in the case of in situ projects,

(iii) Beneficiaries’ reluctance to move on to the new locations in the case of relocation projects,

(iv) Cost escalation due to various factors,

(v) Inability of beneficiaries to contribute their share and towards cost escalation, (vi) Availability of litigation free land, and

(vii) Inadequate community involvement.

In a written reply in the Lok Sabha today she said, the escalation in cost of houses is partly due to the delay in execution of projects. The main reason for cost escalation is steep increase in prices of steel and cement during 2007 to 2009. It is upto the States to meet the cost escalation out of the State /ULB/parastatal funds, as meeting such escalation from central funds is not permissible under BSUP and IHSDP Guidelines. However, is some instances, States are increasing the beneficiary contribution for housing to meet the cost escalation.

She said, States have been advised during the course of review meetings at Central/Regional and at State level as follows:

(i) start the non-starter projects or propose, cancellation and replacement by alternative projects;

(ii) achieve the completion of houses within the Mission period as early possible;

(iii) provide additional state share to meet cost escalation and also where urban local bodies and beneficiaries are not in a position to contribute due to poor financial health.