Date:12/05/2008 URL: http://www.thehindu.com/2008/05/12/stories/2008051254150700.htm

Kerala

1 p.c. cess on luxury houses soon, says Kerala Minister

Special Correspondent

New scheme to refurbish an estimated 60,000 houses built 36 years ago Funds from philanthropists, voluntary agencies

Thiruvananthapuram: Kerala Forest and Housing Minister Benoy Viswom has said the State government is planning a legislation that will give it powers to levy one per cent cess on luxury houses as part of its efforts to mobilise additional resources to shore up the housing sector.

Addressing a press conference here on Sunday, the Minister said the government would launch a new housing scheme “the M N One Lakh Housing Renovation Project” aimed at refurbishing an estimated 60,000 houses that were constructed 36 years ago. The Minister said the scheme would give a fresh leash of life to the social housing scheme “One Lakh Houses” launched by CPI leader M.N. Govindan Nair during his tenure as Housing Minister in the late 1970s.

The funds for the renovation scheme would be mobilised through the “One Lakh Houses Renovation Bumper Lottery” and contributions from philanthropists, including Non-Resident Keralites and voluntary organisations. Under the scheme, the State government would provide a subsidy of Rs. 25,000 each. According to preliminary surveys, there were 60,000 dilapidated houses coming under this category.

As a first step, the government proposes to renovate all “One Lakh” houses in Kollam district in the next one year.

The decision on this was taken at a high-level meeting the Minister had convened the other day. The State government subsidy and local bodies’ allocation for housing would be utilised. It had also been decided to examine the possibilities of improving the basic facilities in the colonies.

The Minister said he had convened a meeting of MPs, MLAs, Mayor, district, block and grama panchayat presidents, municipal chairpersons, Collector and officials of Kollam district to discuss the details of the proposals.