INDORE: Indore Municipal Corporation (IMC) has accomplished the construction of around 1916 houses for the low-income group under the JNNURM project.

The houses are ready for giving accommodation to the eligible contenders. As per the JNNURM project, the civic body was expected to construct around 5000 houses for the low-income group but it managed to construct only 1916 houses.

Citing the reason, mayor Krishna Murari Moghe said that the escalation in cost of the project resulted in not meeting the goal. The project was approved at the cost of Rs 1.50 lakh per unit on each house, but now the cost of per unit has escalated to Rs 3.75 lakh. As union government releases fund only in accordance with the cost sanctioned at the time of approval, the civic body has to bear the escalated cost of the project.

On the cost escalation of the project, minister Babulal Gaur said that state government will consider the increasing financial burden over the civic body. He also said that union government has extended the deadline of the project for another two years.

According to urban administration development ministry, Madhya Pradesh was expected to construct around 40,000 houses in all, out of which only 26,000 houses have been constructed in Indore, Bhopal, Jabalpur and Ujjain under the project.