MP News: The Dr. Mohan Yadav-led government in Madhya Pradesh is planning to launch a special housing scheme for government officers and employees. Under this scheme, employees will initially be provided with rental housing, which they can eventually own after completing the payment process. The initiative will first be rolled out as a pilot project in selected metropolitan cities.
Ownership After Final Payment
The scheme’s main feature is that once employees complete the final installment of their payment, they will gain full ownership of the house. This initiative is designed to involve a government contribution along with employee participation. Various models, including a hire-purchase model, annuity model, and renting private residential complexes, are being considered to finance and implement the project.
Pilot Project to Start in Major Cities
Initially, the project will be implemented in Indore, Bhopal, Gwalior, and Jabalpur as part of the pilot phase. The government plans to form a committee to oversee the project’s execution, which will explore alternative financial and operational processes for constructing government housing complexes.
Previous Consideration During Shivraj Government
It is worth noting that a similar concept was considered during the tenure of former Chief Minister Shivraj Singh Chouhan, where options for providing residential facilities to employees were explored, including the hire-purchase model. At that time, a committee was formed under the chairmanship of Mohammad Suleman, the then Additional Chief Secretary. However, the project was later shelved.
What is the Hire-Purchase and Annuity Model?
In the hire-purchase system, the buyer agrees to pay for the property in installments rather than a lump sum. Although the buyer takes possession of the property, ownership remains with the seller until the final installment is paid. Once all payments are complete, the buyer becomes the rightful owner. However, if the buyer defaults on payments, the property is forfeited, and the installments already paid are treated as rent or hire charges.
The annuity model and other proposed structures are also under consideration for this scheme, aiming to provide long-term housing security for government employees across the state.
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