Hyderabad: Telangana Chief Minister K. Chandrasekhar Rao’s scheme to provide free 2 BHK houses for the poor is facing space constraints.

The government is willing to spend Rs 3.5 lakh on each house, but officials made it clear that even a 490 sq.ft house cannot be built with that amount and it requires nearly Rs 5 lakh. The state wants to decrease the carpet area further, but officials say a 2BHK with kitchen and toilet is not possible in less than 490 sq.ft.

Housing minister A. Indrakaran Reddy on Monday said the implementation of the scheme now largely depends on the assistance to be given by the Centre and the state is ready to integrate its scheme with Centre’s housing scheme for poor, if that happens.

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The 2BHK housing scheme was a major poll plank of the TRS in the 2014 general elections. The party in its manifesto had stated that it would build these houses by spending Rs 3 lakh each.

However, after coming to power, it realised that it was not possible to construct a 2BHK house for Rs 3 lakh. The CM increased the price to Rs 3.5 lakh and asked officials to create the plans accordingly. However, the latest estimates submitted by the officials state that nearly Rs 5 lakh is needed. The government plans to build 10 lakh houses during its five-year tenure with 2 lakh houses each year.

“The construction costs have increased significantly due to higher cement and steel prices. I will take up the issue with the CM and seek his guidance on how to go forward on the scheme,” Mr Reddy said.

The government had just allotted Rs 1,000 crore for the scheme in the recent Budget. Even these funds are unlikely to be used with the Budget coming to an end on March 31 as the scheme is yet to be grounded. Mr Reddy said efforts are being made to utilise maximum funds out of Rs 1,000 crore before March 31 to expedite the scheme in Hyderabad, where the CM laid foundation to build houses in IDH colony in Sanathnagar on the occasion of Dasara in October last besides Ankapur in Nizamabad.

The government is concerned that if it fails to utilise these funds, it would be difficult to convince the Centre to seek funds for the same scheme.