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House design, cost estimation



Can you believe that there is mind boggling over 50000 crores corruption is planned in AP through 10 Lakh NTR houses planned and being executed under PMAY- AH program? Is it the gift CBN Government is giving to Late NTR during the release of his biopic? How will NTR family take it?

The details are as under:

  • 10 Lakh houses with 265,365,465 sft sizes are planned. Let us take average size of each house is about 400 sft and total SFT proposed for construction is 40 crores.
  • Excluding external infrastructure the contract is awarded to big players with tag size of minimum 10000 units @ Rs. 2700/sft inclusive of taxes. In TG state with 1000 unit tag size they awarded in the range of rs.1350 – 1450/sft inclusive of taxes (in AP there is escalation clause for cement, not in TG)
  • The total contract value for 10 lakh houses in AP is coming to Rs.1.08 Lakh Crores.
  • For external infrastructure GOI urban development schemes like Amrut etc. funds are used and it comes to Rs.400/sft. For entire project is comes to Rs.16, 000 crores.
  • Government lands are used for this program. With average 250 houses / acre of land , about 4000 acres land is given to the program and with 5 Cr/Acre as rate the land component is Rs.20, 000 crores.
  • The total project is costing around Rs. 1.44 Lakh crores.
  • Do not think extra ordinary specifications are being used as the rate is Rs. 2700/sft. They are normal specs and in the name of sheer wall technology and by avoiding competition major loot is planned. In fact the shuttering used for temporary secretariat constructed with another inflated figure of over Rs.10, 000/sft is used in these projects, and hence it is almost free for contractor as he already booked double the cost in secretariat building.
  • If the same project is sourced through private builders with same specs and even better quality norms on an average they will offer ready to occupy flat for Rs 2800/sft , hence the total out lay comes to 1,12,000 crores, which include decent contractor margin plus all other hidden costs .
  • Where is the difference between 1, 44,000 Crores estimated cost minus 1, 12,000 crores if implemented in decentralized approach which comes to Rs.32, 000 crores plus savings in land bank of Rs20, 000 crores in total Rs,52,000 crores going?
  • Why still people are still interested? There is straight subsidy component of Rs. 3 lakhs /house coming to Rs.750/- per sft. Not factoring in land cost and infra cost houses are offered and beneficiaries also are of the opinion that they need not pay bank instalments.  By not showing the land cost and infra costs met through urban infra programs into projects, these are passed on to contractors accounts and probably taken back.   



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