Buying a home from the Lucknow Development Authority (LDA) is now going to be a lot cheaper for people from the Economically Weaker Sections (EWS). The authority has decided to waive off the 15 per cent contingency charge and 10 per cent overhead charge on EWS houses.

The contingency and overhead charges are basically unforeseen charges, which might accrue during the course of construction. These charges are levied on the consumers during the bookings.

The LDA Vice-Chairman, Mukesh Kumar Meshram, has directed the officials concerned to implement the order in all the future schemes. Currently, no new EWS scheme is in the offing, said Avdhesh Kumar, LDA finance officer.

A person with an annual income not exceeding Rs 36,000 is entitled for the allotment of a house under EWS category. It has, however, been noticed that often people for whom these houses were built could not apply because of the sky-rocketing price.

According to an LDA engineer, the construction of such a house on a 30-square metre area costs up to Rs 1.40 lakh. After addition of 15 per cent contingency charge and 10 per cent overhead charge, the cost usually goes up to Rs 1.75 lakh.

“Now when the overhead charge and contingency charge will be waived, the cost of each EWS dwelling will reduce by Rs 35,000, which will make these houses more affordable,” said the official.

The state government has asked the various development authorities to focus on the development of more EWS category houses so that poor people can be provided shelter. The LDA has started looking for sites on Kanpur Road, Hardoi Road, Sitapur Road and Jankipuram.