Completion of Housing Projects

            Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) components of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) are coordinated by the Ministry of Housing and Urban Poverty Alleviation. As regards BSUP and IHSDP, 41.3 per cent of the houses sanctioned for the poor are completed. However, a project is considered incomplete even if a single infrastructure component is not executed.

The  execution of projects under BSUP and IHSDP are undertaken by the respective State Governments and their implementing agencies, primarily Urban Local Bodies. While progress in some States is excellent, some others are lagging. The reasons for non-completion of projects in time, among other things, are as under:

(i)                 Cost escalation, especially prices of steel and cement due to various factors and the reluctance of States and Urban Local Bodies to meet cost escalation – particularly ULBs in view of the precarious municipal financial position;

(ii)               Lack of project management capacity at State/Implementing Agency/Urban Local Body (ULB) levels

(iii)             Difficulties in making slum residents temporarily relocate in the case of in situ projects;

(iv)             Inability of beneficiaries to contribute their share ;

(v)              Lack of availability of litigation-free land;

(vi)             Land disputes, including Court litigations.

               The Government has extended the Mission Period upto March, 2014 for completion of on-going projects sanctioned till March, 2012 and implementation of reforms. States have been advised during the course of review meetings at Central/Regional and State level to:

(i)    start the non-starter projects and take action to complete projects and ensure occupancy of completed houses according to a time-bound action plan;

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

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

                              Financial Support has been provided by the Government for establishment of Programme Management Unit (PMU) at the State level and Project Implementation Unit (PIU) at ULB level. The Ministry of Housing and Urban Poverty Alleviation has conducted 290 Capacity Building Programmes and about 19,300 State/parastatal/local body officials trained in project formulation, design, implementation and monitoring.