Post by streelman on Mar 26, 2011 6:38:15 GMT -5
The Housing Boards and the Corporations should not do in-house engineering planning and execute works by inviting conventional tenders. This discriminative, subjective and inhibiting outdated primitive practice must be immediately stopped as per the directives of the Government of India and instead turnkey lumpsum offers from proven manufacturers needs to be given. This alone will solve almost all problems.
Besides, the biggest benefit of this system will be that the housing Boards’ entire staff can concentrate on getting more and more lands, getting the peripheral infrastructure done very much in advance of actual construction and sell the housing stock thus created. This will also reduce the overheads of the Housing Boards, which are now anything from 15 percent to 25 percent to a minimum of less than five percent, apart from self-generating ample extra funds for cross subsidizing. So this is the solution for the housing and slum problems in Ernakulam district.
The annual turnover by this system will be very high as responsibilities are divided among many people. It has been recorded that when the turnover of a leading housing development corporation was about Rs.100 crores even under the conventional system the overhead costs were about 4 crore rupees, i.e., four percent. By applying the above development pattern and by constructing luxury Villas Ernakulam district and its leading builders could generate more profits in recent times.
The Kerala State Housing Board has unnecessary heavy establishment costs and their turnover is not even Rs. 50 crore while their fixed costs may be in the range of 20 to 25 percent. The Housing Board’s turnover must be and shall be, after 2 – 3 years, if certain working solutions are implemented, rise up to 400 to 500 crore rupees annually and then even with the high establishment costs, the fixed costs will not be more than three to five percent.
Besides, the biggest benefit of this system will be that the housing Boards’ entire staff can concentrate on getting more and more lands, getting the peripheral infrastructure done very much in advance of actual construction and sell the housing stock thus created. This will also reduce the overheads of the Housing Boards, which are now anything from 15 percent to 25 percent to a minimum of less than five percent, apart from self-generating ample extra funds for cross subsidizing. So this is the solution for the housing and slum problems in Ernakulam district.
The annual turnover by this system will be very high as responsibilities are divided among many people. It has been recorded that when the turnover of a leading housing development corporation was about Rs.100 crores even under the conventional system the overhead costs were about 4 crore rupees, i.e., four percent. By applying the above development pattern and by constructing luxury Villas Ernakulam district and its leading builders could generate more profits in recent times.
The Kerala State Housing Board has unnecessary heavy establishment costs and their turnover is not even Rs. 50 crore while their fixed costs may be in the range of 20 to 25 percent. The Housing Board’s turnover must be and shall be, after 2 – 3 years, if certain working solutions are implemented, rise up to 400 to 500 crore rupees annually and then even with the high establishment costs, the fixed costs will not be more than three to five percent.