Fresh government order awaited as housing project worth Rs 1,975 crore stalls in Chennai

CHENNAI: The Tamil Nadu Urban Habitat Development Board’s (TNUHDB) Rs 1,974.52-crore project to reconstruct 8,870 dilapidated tenements across 17 housing schemes in Chennai has been put on hold as the board awaits a fresh government order (GO) from the newly formed Tamilaga Vettri Kazhagam (TVK) government.

Residents of Kakkan Colony in Adyar, one of the identified sites, have urged the government to expedite the project, warning that the 46-year-old tenements have become structurally unsafe and may not withstand the upcoming northeast monsoon.

Administrative sanction and the initial GOs for the project were issued in August and October last year under the previous DMK government. For the 2025-26 financial year, the reconstruction plan covers two phases. The first involves seven schemes with 4,340 tenements at an estimated cost of Rs 938.09 crore, while the second covers 10 schemes involving 4,530 tenements at a cost of Rs 1,036.24 crore.

The reconstruction programme was originally proposed under the Asian Development Bank-funded Inclusive, Resilient, and Sustainable Housing for the Urban Poor Sector Project, announced in the Assembly under Rule 110 in June 2024. However, the previous government later decided to execute the project entirely through state funding after finding commercial bank borrowing unviable due to high interest rates.

A senior TNUHDB official told DT Next, “Enumeration of residents in most of the buildings has been completed and reconstruction approvals were obtained before the Assembly elections. However, the funding model was later revised and the State government decided to finance the project entirely through its own resources. A fresh proposal has since been submitted.”

Residents say the delay has left them living in unsafe buildings. G Dhandapani, VP, Kakkan Colony Public Welfare Association, said that temporary accommodation had been arranged for 110 families before the elections and 20 families had received financial assistance of Rs 24,000 each. “Since the elections, there has been no progress and no official has visited us,” he said.

Pointing to the deteriorating condition of the buildings, he said a sunshade from F Block collapsed two weeks ago, damaging an autorickshaw. “Two houses have already crumbled. The situation will become worse once the monsoon begins,” rued Dhandapani.

B Block resident Mani Megalai piped in: “The ground-floor houses are located nearly four feet below road level, resulting in severe flooding during every monsoon. Water stagnates up to my knees and I have to stay in a neighbour’s first-floor flat until it drains out, which takes several days.”

The TNUHDB official added that the project would move ahead once the new government issues a fresh GO. “Following the formation of the new government, we’re awaiting a fresh GO. Once it’s issued, we’ll float tenders and begin demolition of the existing buildings before reconstruction starts,” he stated.

WHAT THE PROJECT ENTAILS

17 reconstruction schemes

• West Cemetery Road: 792 tenements for Rs 171.98 cr

• Udhayasuriyan Nagar: 850 tenements for Rs 184.77 cr

• KK Nagar Phase-1: 692 tenements for Rs 150.33 cr

• Chitra Nagar: 460 tenements for Rs 94.56 cr

• Pachaikal Veerasamy Street: 912 tenements for Rs 22.17 cr

• NVN Nagar Phase-2: 352 tenements for Rs 76.80 cr

• Raja Muthaiyapuram: 282 tenements for Rs 59.48 cr

• Nallan Kuppam: 48 tenements for Rs 11.73 cr

• Boopathy Nagar: 64 tenements for Rs 15.01 cr

• North Mada Street: 196 tenements for Rs 43.06 cr

• Beri Beri Nagar: 340 tenements for Rs 80.65 cr

• Kakkan Colony: 324 tenements for Rs 68 cr

• Kabalithottam: 832 tenements for Rs 179.75 cr

• MK Radha Nagar: 759 tenements for Rs 166.94 cr

• West Indrani Nagar: 105 tenements for Rs 27.96 cr

• Rani Anna Nagar: 950 tenements for Rs 233.91 cr

• VOC Nagar: 912 tenements for Rs 209.42 cr