THIRUVANANTHAPURAM, Kerala: MB Rajesh, Minister for Local Self Government, Kerala, has informed the state assembly that the Kerala government has spent ₹17,526.76 crore on its Livelihood Inclusion and Financial Empowerment (LIFE) Housing initiative since its inception back in 2017.
Out of the total ₹17,526 crore, ₹2,081.69 crore came for the central government under the Pradhan Mantri Awas Yojana rural and urban scheme. Also, local bodies have contributed ₹5,153.73 crore from their purse. Apart from that, the state government has also borrowed money to finance the project. From the Housing and Urban Development Corporation (HUDCO), the government has borrowed ₹4,591.54 crore, while ₹425 crore was taken from Ernakulam District Cooperative Bank in 2018-19.
The government has availed the loan at an 8.75 per cent interest rate from HUDCO for the third phase of the project in the urban areas of Kerala. The state government is deducting the required amount from the development grants of the local bodies to repay the loan. At the beginning of each financial year, Kerala Urban and Rural Development Finance Corporation Limited (KURDFC) gives the deducted amount to HUDCO. The maximum period to repay the loan is 15 years.
The loan amount will be disbursed to local government institutions in proportion to the number of houses built by the local bodies on the recommendation of the LIFE mission KURDFC.