The LIFE Housing Scheme in Kerala has slowed due to the state's financial crisis and the depletion of HUDCO's loan limit. The inability of local bodies to take on new housing contracts, combined with the government's search for funding, has left thousands living in inadequate housing.
Thiruvananthapuram: With the state government's financial crisis and the expiration of the HUDCO loan limit, the pace of the LIFE Housing Scheme has slowed down. The crisis arises from the inability of local bodies to take on new housing contracts while the government is seeking funding for construction. As local elections approach next year, there is growing concern about how long people will have to wait for adequate housing. Thousands are currently living in unsuitable conditions, facing uncertainty about when improvements will be made.
For instance, every day, Ponnamma and her daughter in the Vengol 3-cent colony are waiting for a proper roof over their heads, enduring with a makeshift door propped up with iron sheets. They have been waiting since 2018. Despite spending all of her daughter Sudha's earnings on the house, nothing has materialised. They still have to stay awake during heavy rains, unable to sleep due to the leaks and inadequate shelter.
Ranjitha, a widow, supports her three children through domestic work. Her children are studying in Plus Two, first grade, and second grade. They are unable to sleep under the makeshift roof of their kitchen, which is covered with sheets, due to leaks and inadequate protection. As a result, Ranjitha and her children have to seek refuge in a relative’s house.
In the Vengola Panchayat’s LIFE (Livelihood, Inclusion, and Financial Empowerment) beneficiary list, Ponnamma’s daughter Sudha is ranked 274th, and Rajitha is ranked 325th. Rajitha’s husband passed away two years ago, and due to the prioritization system in place, she remains lower on the list. In Vengola Panchayat, out of 600 families on the list, only 220 have seen progress in their home construction. In Ernakulam district, over 8,000 people are still waiting to sign contracts for their homes.
Since 2017, the LIFE scheme has signed contracts with 5,10,984 families across the state. Out of these, 40,646 houses have been completed. However, the process of signing contracts with the remaining families has been delayed due to the depletion of funds from HUDCO (Housing and Urban Development Corporation), which previously provided loans for these housing projects.
Due to the state's worsening financial crisis, the Kerala government has imposed treasury controls. Bills exceeding Rs 5 lakh will not be cleared until further notice, reducing the previous limit from Rs 25 lakh. This restriction will impact local bodies and contractors, and delays are expected in the disbursement of benefits across various departments. The state's financial strain follows the heavy expenditures incurred during the Onam festival season.