End of the road: Rajeev Swagruha dreams dashed

By SNV Sudhir

Visakhapatnam, Nov 29, 2013: The dreams of Vizagites from middle income group to own a flat under government’s ‘Rajeev Swagruha’ have come crashing what with the government scrapping the scheme due to fund crunch.

Now, the AP Rajeev Swagruha Corporation Ltd (APRSCL) staff is working overtime to finalise the procedure and modalities to refund the payments made by the applicants who booked flats in ‘Adraja Township’ in Yendada. Efforts are also on to auction the land where the housing project was envisaged.  

A cabinet sub committee appointed by the state government to study the situation, analyse the problem and help the Corporation to come out of the financial crisis has recommended that projects across the state be categorised.  

The committee recommended that those projects coming under category I and II be given stimulus by providing loan to the tune of Rs 105 cr and projects under category III may be scrapped and the installments paid by the applicants be fully refunded.

 Vizag’s Adraja  Project falls under category III and it was decided to be scrapped.

It’s been more than 5 years since the much hyped Rajeev Swagruha housing for the middle class was first launched and except four model houses on display for the applicants nothing has come up at Yendada’s Adraja Township, where government allotted around 57.3 acres of land for the project.

A demand survey for city’s Rajeev Swagruha scheme was done in 2007 and around 57.73 acres of land was taken possession by the APRSCL in 2009, to construct around 2, 588 under Adraja township. The proposed township is located close to Rushikonda.

Earlier authorities were confident of finishing the first phase by constructing 800 flats but nothing has moved positively except foundation for 6 blocks. Due to non availability of river sand it was delayed for more than year and later funds crunch hindered the housing scheme.

The digging of 30m depth to make the terrain suitable for construction, took many years. Initially the Rajeev Swagruha Corporation had received around 13, 045 applications for flats at Adraja township of three different categories but some of them backed off initially due to delay in grounding the project and the escalation in the upset price.

Subsequently the allottees of flats had lost interest in the scheme. Most of the allottees who paid an initial amount of Rs 25,000 as confirmation had lost interest in owning a flat by the Corporation and backed off. They were reluctant to pay the remaining installments which pushed the Corporation into financial crisis delaying the project.

“Many allottees backed off which pushed the project into financial mess. There are no hopes of revival and government decided to scrap the project as it’s is not viable though we spent very good amount on foundation. The 57.3 acres will be disposed in an auction. We have divided the entire land into 8 bits. The auction date and also the repayment schedule will be announced very soon,” said an APRSCL senior official told this correspondent.

APRSCL authorities last year has taken up first phase of constructing 896 flats in six blocks, with G+ 13 structure each. The first phase itself was supposed to be grounded in August 2009 as envisaged initially, but it was delayed till 2011.