Official guidance, Tamil Nadu land law
G.O.(4D) No.08, Reduction of Beneficiary Contribution for 46 Pradhan Mantri Awas Yojana (Urban) Projects, 2023
The Housing and Urban Development Department of the Government of Tamil Nadu issued G.O.(4D) No.08 on 16 February 2023, granting administrative sanction of Rs.252 crore to reduce beneficiary contributions for 46 Tamil Nadu Urban Habitat Development Board reconstruction projects under Pradhan Mantri Awas Yojana (Urban), Affordable Housing in Partnership. The department also granted financial sanction of Rs.83.23 crore for the financial year 2022-2023 from the Infrastructure and Amenities Fund.
What the sanction covers
G.O.(4D) No.08 of the Housing and Urban Development Department authorises funding for 46 reconstruction projects implemented by the Tamil Nadu Urban Habitat Development Board. The Board is the nodal agency for Pradhan Mantri Awas Yojana (Urban), also described as the Housing for All programme, in Tamil Nadu.
The funding is intended to reduce the amount payable by beneficiaries and help complete allotment of vacant tenements. The document records that upfront beneficiary payments had become difficult because of loss of livelihood during Covid-19 and rent paid by families living outside project areas during construction.
Funding and beneficiary contribution
G.O.(4D) No.08 grants administrative sanction of Rs.252 crore from the Infrastructure and Amenities Fund. It provides financial sanction of Rs.83.23 crore in the financial year 2022-2023, with the balance stated as capable of consideration in the 2023-2024 budget estimate.
The reduction proposal specifies these maximum beneficiary contributions:
- Greater Chennai Corporation, Rs.5 lakh.
- Chennai Metropolitan Area limit, Rs.4 lakh.
- Old corporations, Rs.3.50 lakh.
- New corporations, Rs.3 lakh.
- Municipalities, Rs.2 lakh.
- Town panchayats, Rs.1.50 lakh.
Funds must be released scheme by scheme according to allotments made by the Tamil Nadu Urban Habitat Development Board. At least 60 per cent of beneficiaries must be identified before allotment orders are issued.
Projects and people affected
G.O.(4D) No.08 applies to 46 listed schemes located in Chennai, Coimbatore, Madurai, Salem, Erode and Trichy. It directly concerns beneficiaries seeking tenements in those reconstruction projects, including the Light House project, where at least 300 beneficiaries must be identified.
Conditions attached to the funding
The Housing and Urban Development Department imposed operational conditions on the Tamil Nadu Urban Habitat Development Board:
- Contractors must not receive advance payments. Payments are to be released after completion of work structured under each phase.
- Engineers must examine cost reductions through smaller flats, economical closet sizes and economical use of tiles.
- Roads, streets, street lights and borewells are to be provided based on substantial resident occupancy.
- Lifts are to be installed after occupation of the tenements.
- Families must be informed about their responsibility for maintaining the tenements.
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Common questions
How much funding was sanctioned for reducing beneficiary contributions?
The Housing and Urban Development Department granted administrative sanction of Rs.252 crore. Financial sanction of Rs.83.23 crore was provided for the financial year 2022-2023.
What is the maximum contribution for a beneficiary in Greater Chennai Corporation?
The maximum beneficiary contribution specified for Greater Chennai Corporation is Rs.5 lakh.
Must beneficiaries be identified before allotment orders are issued?
Yes. At least 60 per cent of beneficiaries must be identified before allotment orders are issued, and funds are to be released scheme by scheme based on allotments.
Can contractors receive advance payment under these projects?
No. The document prohibits advance payment to contractors and requires payment to be released after completion of works structured under each phase.
