Free Press Journal

Fund crunch likely to ground several IDA projects


State finance minister reviews non-feasible projects, seeks report from IDA, collector

Indore : Indore Development Authority (IDA) may have to put several of its ambitious projects in cold storage after facing difficulty in attracting investors in the wake of recession in real estate sector post formation of Real Estate Regulatory Authority (RERA) in state.

Concerned over the situation, state finance minister Jayant Malaiyya has directed district collector Nishant Warwade and IDA chairman Shankar Lalwani to review the projects, which did not prove feasible and send report to state government.

While several residential and commercial projects are in full swing on acres of lands acquired from farmers by the city’s premier governmental development body some two years ago, following recession in the real estate sector after introduction of RERA in the state, the much-hyped projects hardly have any takers either in investors or consumers. In this scenario, the minister’s directives have been considered as a major setback to IDA.

The minister was in city on Saturday to attend a review meeting of all the IDA projects, carrying a cost of Rs 50 lakh or above. Top officials of IMC, MP Road Development Corporation and IDA made presentations of their projects at the meeting, which was attended by mayor Malini Gaud, IMC commissioner Manish Singh, IDA CEO Goutam Singh and several officials from PWD and Public Health Engineering (PHE) departments apart from the district collector and IDA chairman.

Following the meeting, Malaiyya during an interaction with media here at Residency said that state government had been instructed by the Centre to ask its city development agencies to quit schemes, which were not feasible.

“In this direction I discussed various schemes and projects with IDA officials and asked IDA chairman and collector to review and identify non-practicable schemes and prepare a report about them. IDA has been instructed to send the report to state government,” the district in charge minister said.

 “I have instructed officials of public works department (PWD) to speed up road construction works and assured them of not letting the fund crunch affect the work,” the minister said, adding that “There are enough funds lying with the state government to meet obligation of development.”

Earlier, in the meeting the minister suggested that efforts should be made to procure cement at cheaper rates for homes being built under the ‘Housing for All Scheme’, as it would help reducing the cost of the house.

For example he cited Damoh, where construction agencies have contacted factories directly and are availing cement at the rate of Rs 180 per bag to build houses under the ‘Housing for All Schemes’.

Saying Katni too is following the suit, the minister instructed the collector Warwade to try the modus operandi.

Meanwhile, official sources said that Lalwani opposed the proposal of quitting the schemes proving unviable, but relented after Malaiyya cited the circular issued by the Government of India in this regard.