The State has earmarked ₹1,132 crore for the LIFE housing scheme for the financial year 2024-25. Finance Minister K.N. Balgopal says the State has been forced to shell out more funds for the Pradhan Mantri Avas Yojana (PMAY) Gramin and Urban as the Centre refuses to pay its share.
In the Budget presentation, Mr. Balagopal said 3,71,934 houses had been completed under the LIFE scheme in the State so far and that the figure will reach 4.25 lakh by the end of the financial yea. The State had spent ₹17,104.87 crore on the scheme so far, ₹1,966.36 crore in 2023-24 alone.
The Centre has set the total cost of a house under the PMAY-Gramin scheme as ₹1.2 lakh and pays its share of ₹72,000 per house. In the case of PMAY-Urban, the centre has fixed the cost as ₹2.5 lakh and pays ₹1.5 lakh per house as its share. However, the State has fixed the cost of a house as ₹4 lakh in both cases and, hence, pays the complete amount besides the Central share to the beneficiaries.
Thus ₹2.7.92 crore and ₹133 crore have been earmarked in the Budget for the two schemes. However, the Centre has refused to pay its share after the State refused to use the brand names on grounds that it affected the dignity of the beneficiaries and, hence, is forced to pay the Centre’s share as well.
Meanwhile, local bodies work to expedite the construction of the houses under LIFE using a long-term loan scheme, in addition to the Budget provision. An amount of ₹305.68 crore has been earmarked as assistance to Kerala Urban and Rural Development Finance Corporation that provides financial assistance to LIFE Mission by availing loans from HUDCO.
Besides life, an amount of ₹ 57.62 crore is earmarked for the housing sector, including ₹39.56 crore for Kerala State Housing Board and ₹ 1.06 crore for the Housing department.
Of the housing board’s allocation, ₹2 crore is for a new scheme ‘Vardhakya Souhrida Bhavanam’ (elderly friendly homes). An amount of ₹ 6 crore is set apart for the EWS/LIG housing scheme to provide loan-linked subsidy to low income groups.
An amount of ₹10 crore has been set apart for ‘Suvarna’ Bhavanam’ and ‘Navayuga’, two schemes for the reconstruction of uninhabitable houses built under the Laksham Veedu scheme. As much as ₹10 crore has been allocated to the Kerala State Nirmithi Kendra for various activities while ₹3 crore has been allocated to the Laurie Baker International School of Habitat Studies .
The Minister announced that the Housing Board is constructing an International commercial-residential complex at Marine Drive in Kochi, at a cost of ₹2,150 crore, with the help of National Building Construction Corporation Limited.
