Hyderabad: There are hardly any takers for the state government’s Rajiv Swagruha housing projects that have the USP of “clear titles”. One of the main reasons is the price factor.

Rolled out in 2007, the aim of the Rajiv Swagruha housing scheme was to provide quality houses at an affordable price to the middle-income group.

The state government had also given the mandate that these houses would be provided at 25 per cent less cost than the prevailing market rate.

However, the flats now cost as much or more than those in private gated communities. Officials admit that the prices have escalated mainly due to the addition of interest of the loans from nationalised banks.

The corporation had borrowed from banks by mortgaging 752 acre of government lands, which are mostly in Greater Hyderabad.

“Over Rs 1,000 crore was borrowed from five nationalised banks. The corporation has been paying over Rs 200 crore each month for this.

These costs have been added to the price of the flats and they are not selling,” said G. Nageshwar Rao, director, state Rajiv Swagruha Corporation Ltd.

Officials, however, say that the prices of the housing units are still reasonable when compared with market rates.

“Most private constructors levy hidden charges. The prices we quote are inclusive of VAT, service tax, piped gas connections, 24-hour water supply, generator back-up and the projects are developed in gated communities,” he added.

However, the advantage seems to be going to TS government employees. Chief Minister K. Chandrasekhar Rao has announced that the housing units would be sold at a cost-to-cost (no profit, no loss basis) rate to state government employees.

Currently, the per sq. ft price of the Rajiv Swagruha units is around Rs 2,200, However, the Telangana Non-Gazetted Officers’ Association has demanded that the government give them the flats at Rs 1,500 per sq. ft.

If the state agrees, then it has to forgo the land cost (which is government land). Even journalists are vying for the Rajiv Swagruha flats. “Allam Narayan, chairman of Press Academy of Telangana State, has approached the government seeking flats for journalists at a cost of Rs 1,000 per sq. ft,” said an official source.