Tamil Nadu   

Real estate boom puts Housing Board back on road to recovery

T. Ramakrishnan

In one year, it settled around Rs. 141 crore in loans

CHENNAI: The Housing Board is back on track, thanks to the boom in the real estate sector.

A year ago, the Board had debts to the tune of about Rs. 174 crore. In one year, it settled around Rs. 135 crore.

Board officials say that of the remaining Rs. 33 crore, debentures account for Rs. 23 crore. They have varying tenors, and the last set expires in 2012. Fixed deposits, once invited by the Board, account for Rs. 8 crore.

The officials say improvement in revenue collections and fixing of offset price for property other than residential units (commercial property in the Board's parlance) are among the steps that have contributed to the recovery. In the recent months, many projects of the Board, including those for plots at Sholinganallur and residential apartments in SIDCO Nagar, Villivakkam, evoked a positive response. The Board has reserve funds of Rs. 60 crore.

In the last one year, 1,400 units of commercial property were approved for fixing the offset price. The Board realised Rs. 22 crore from 110 units.

At present, the Board is implementing 30 self-financing schemes at a cost of Rs. 68 crore, of which schemes, worth Rs. 50 crore, are under execution in Chennai. The remaining schemes cover Madurai, Tirunelveli and Tenkasi.

The administration's thrust is on issue of sale deeds to allottees promptly. Over 20,000 sale deeds have been issued, says an official. A few days ago, Board officials distributed sale deeds to allottees of Valmiki Nagar, Thiruvanmiyur. Some of the allottees now residing in Mumbai and the United States came down to the Board headquarters to receive the deeds.

Those who have studied the finances of the Board say there is enormous scope for improvement. For instance, the cost has not yet been fixed for several commercial property earmarked for the Government's discretionary quota. A conservative estimate reveals that the Board stands to gain at least Rs. 500 crore, if the price is fixed. It Board is having receivables on unsold stock for Rs. 300 crore, and should sell them at the earliest.

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