The development agencies engaged in construction of small houses for urban poor under Manyawar Shree Kanshiramji Shahari Gareeb Awaas Yojna have expressed their inability in continuing the scheme as they are finding it difficult to build houses with the construction cost fixed by the government.

Last year, the state government had announced that it would build 1.01 lakh dwelling units across the state every year and fixed the construction cost of each unit of 31 square metre area at Rs 1.75 lakh.

While 1.01 lakh houses of last year are yet to be completed, the development agencies have demanded a hike in construction cost for the current financial year.

Interestingly, the development agencies — UP Housing and Development Board (UPHDB), the Public Works Department (PWD) and others — have proposed their own rates for constructing houses in 2009-10. While the UPHDB has proposed Rs 2.34 lakh as construction cost of each dwelling unit, along with a 12 per cent extra charge for deployment of its staff and resources, the Public Works Department (PWD) has demanded Rs 2.44 lakh for each unit.

“A technical committee has been formed to look into the matter and it is examining the rates which they have proposed,” said Alok Ranjan, Principal Secretary of Urban Development.

Arguing for the hike in the construction cost, the officials of the development agencies pointed out to the increase in the prices of construction materials. For example, they said, the cost of one bag of cement has crossed Rs 300 against Rs 160 of last year and the cost of bricks and iron rods too has doubled.

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