Kerala State Housing Board, in the words of its Chairman Arackal Balakrishna Pillai, is now firmly on a path of rebuilding its reputation and reshaping destiny.

“It will take some doing, but we know for sure what we’re up against,” Pillai says with complete confidence as he shares his vision for the State-owned public sector company during the short-to-medium term ahead.

TIDES TURN

The tides have decidedly turned in its favour with the UDF Government assuming office more than a couple of years back.

He is quick to acknowledge the support and guidance provided by K.M. Mani, astute political veteran and able administrator, who is Minister for Finance and Housing.

“But for his timely intervention during critical times and visionary leadership, we would not have reached the stage where we find ourselves today,” Pillai says.

One could not agree more given that fortunes of heavily indebted Board have come to be inextricably linked with doles the State Government could offer it from time to time.

But this was something that had failed to appeal to the collective conscience of the previous Government, the Chairman said.

So much so, the company was left to fend for itself and forced to a hand-to-mouth existence during the past one decade.

At one point, the Board had come face to face with the prospects of what looked like definite closure. It had also turned the favourite whipping boy of sections of the bureaucracy which wrote it off as a ‘gone case.’

ENTRENCHED CYNICISM

The cynicism entrenched in certain sections of the administration is something Pillai has to contend with during official meetings even now when the company has put itself on what Pillai says is an irreversible path to recovery.

But he is built of sterner stuff and is quick to deflect unsavoury remarks passed against the organisation then and there, as Board officials readily acknowledge.

Pillai recalled that the present Board was bequeathed with what passed for remnants of an organisation after the governing board had changed over.

Its history and reputation lay in tatters, and it was bracketed as a chronic defaulter with re-financier Housing Development and Finance Corporation (Hudco).

“This was a crunch time for the company and the most unenviable phase for a new governing board to sign into office,” the unassuming Pillai said.

Ably assisted by S. Gopala Krishnan, appointed Secretary, the new team set about picking the pieces and rebuilding the organisation block by block in right earnest. The efforts have started delivering, a fact no less borne by the fact that a hitherto sulking Hudco has come around to re-open the refinance window to the Board.

The housing-sector refinancing institution is now willing to fund any new project being put forward by the Board, a beaming Pillai said.

GOING IT ALONE

While acknowledging Hudco’s gracious offer, he said it is also time when the Board thought on its feet and reflected on how it could go it alone sometime in the future.

“As I said earlier, it will take some doing, but I guess it is worth the effort,” Pillai said.

This brings back to focus the status vis-à-vis indebtedness to Hudco built up over the past decade, amounting to Rs 730.67 crore. The servicing has started in right in earnest only after the present UDF Government assumed office.

Pillai said substantial releases from the State Government during 2011-12 (Rs 269 core) and 2012-13 (Rs 209 crore, as on January 31) amounting to an effective takeover of its dues has reduced the load on it by a huge margin.

This has helped raise its stock in Hudco’s books by the same margin, and hence its willingness to throw open refinance window yet again, Pillai said.

When the Union Finance Minister presents his Budget for 2013-14 on February 28, the Board will continue to get his due consideration, he added. It is likely to prove a watershed year in the Board’s annals.

Economically weaker sections and people below poverty line have been the staple choice of beneficiaries of a range of Board schemes right from inception.

POOR BENEFICIARIES

The Saphalyam scheme in various panchayats in the State provides residential flats to the poor. The objective of the Government is to provide 10,000 houses within a year.

The aim is to construct houses for more than seven lakh people who do not have proper shelter. The market value of land has appreciated significantly in recent times burdening those who are financially weak but aspire to buy small plots. The Saphalyam scheme would enable such persons to own flats.

These units of Rs 3.5 lakh each will come up in three-storied complexes with each unit approximately 195 sq. ft with the super-built-up area being 240 sq. ft. Rs 2 lakh would come in the form of subsidy; Rs 1 lakh in Hudco loan; Rs 25,000 from a voluntary donor (of whom many have come forward); and only Rs 25,000 from the beneficiary.

But the beneficiary can pay up this small amount in as extended a period as 168 months.

There is the Sayoojyam scheme for plot development addressed to the low income group as well as people below poverty line.

The flats are slated to come up in 10 panchayats in Kottayam, Kollam, Idukki, Kozhikode, Malappuram, Palakkad and Thrissur districts.

Another innovative scheme is the Santhwanam scheme for those who accompany patients to medical colleges. The first one has been proposed at Kozhikode.

INNOVATIVE SCHEMES

No less innovative is the Sanketham scheme offering a roof over the heads of migrant labourers servicing the urban areas. These have been proposed at Poojappura, Thrissur and Kozhikode. These charge monthly rent as low as Rs 600, besides electricity and water charges.

The Board is also going ahead with its project to build three hostels for women at Kattappana; at Muttam, near Thodupuzha; and at Kozhikode, near the Medical College. The hostels will come up on the Board’s own land. It also has plans to build units for government employees.

The Rent-a-House scheme envisages construction of 12 units each at Kasargod and Devikulam. The Board is also in the process of developing houses for rehabilitating slums dwellers.

It had also come up with a debt write-off scheme during the current year, benefiting 33,384 poor people amounting to Rs 137.47 crore. It backed this up with a one-time-settlement scheme, which is valid until March 31.

Next financial year, the Board’s plan is to go in a big way promoting affordable housing in the loan buckets of Rs 4 lakh, Rs 5 lakh and Rs 6 lakh. Pillai is confident this year would see the ‘resurrection’ of the public sector company in the fullest sense of the term.

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