VIJAYAWADA: The hike in beneficiary contribution of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is proving to be an extra financial burden on the beneficiaries of housing scheme and they are seeking its cancellation.
The Vijayawada Municipal Corporation (VMC) began construction of G+3 houses under JNNURM scheme, a decade ago, in Jakkampudi at Vijayawada but the scheme has not completed due to paucity of funds. The VMC has decided to overcome the shortage of funds by increasing the contribution amount of the beneficiaries to complete construction of the houses.
Initially, the beneficiary contribution to get a house under the scheme was Rs 39,600 but in 2014, it was increased to Rs 66,000 and now, the VMC proposes to hike the beneficiary contribution to Rs 1.56 lakh. The Telugu Desam corporators fear that the proposal might have a negative impact on the party's prospects in the upcoming general elections and are opposing the hike.
The VMC council meeting will be held on November 3 and the hike in beneficiary contribution has also been included in the agenda for discussion.
A beneficiary of the scheme, N. Ramu, said that increasing the contribution amount to Rs 1.56 lakh meant a rise by 130 per cent, which is too exorbitant. "JNNURM scheme is for the poor but the government is planning to increase the contribution by the beneficiaries heavily which cannot be afforded by them."
He said that in case the beneficiary contribution is hiked, the poor will be forced to borrow the amount on high interest from private moneylenders to pay housing instalment to the bank and then repaying the loan amount to moneylenders would be a Herculean task.
CPM state executive member Ch. Babu Rao said that the poor people cannot pay Rs 1.56 lakh as contribution amount. The VMC planned to construct 18,176 houses under JNNURM scheme but completed only 13,664 houses and construction of the remaining 4,512 houses has not been taken up due to shortage of funds.
The VMC asked the government to provide Rs 117.92 crore interest-free loan in April, 2016, but the government refused to sanction the money and so the civic body is planning to collect the amount from the beneficiaries and this is objectionable, he said.
He demanded the VMC to approach the government to complete the construction of remaining houses than troubling the poor.
