New Delhi: Owing to lackadaisical approach of the state governments and banks in implementing Interest Subsidy Scheme for Housing the Urban Poor (ISHUP), the Centre’s ambitious project to make the nation slum free zone within a time span of 5 years is unlikely to achieve the desired target. 

In the last three years, a mere 5,662 people benefitted from the project. Even though the Centre has provided the required facilities for home loan on subsidy, neither the states nor the banks are bothered to implement the plan.

The Centre has released a whopping Rs 1,100 crore for the project, but only Rs 4.32 crore has been spent on it. 

Union Housing and Urban Poverty Alleviation Ministry had initiated ISHUP for providing loan at the subsidized rates to construct houses to the slum dwellers of the urban areas. Under the scheme, 5 percent interest subsidy is given on home loan up to Rs 1 lakh.

As the scheme is implemented through the banks, the progress report of the project was presented before Union Finance Minister Pranab Mukherjee last week.

The report says that only eight states have taken steps to implement the project. Banks have received a total of 6,201 applications, out of which 5,882 are from Andhra Pradesh alone. Therefore, it is worth mentioning that 5,542 out of the total of 5,662 beneficiaries are from Andhra Pradesh.

Owing to poor publicity campaigns, people are not even aware of the important project. The applications forwarded by the state government are sanctioned by the banks. However, most of the states have not cared to forward the loan applications to the banks.