Cabinet okays Phase-II of defence accommodation project

New Delhi, May 22 : The Union Cabinet today approved the construction of nearly 67,000 dwelling units at an estimated cost of Rs 9396 crores in the Phase-II of the Married Accommodation Project with a view to alleviate the working condition of defence personnel.

Out of this, over 58,000 will be for the Army whereas 5238 will be for the IAF and 3107 for the Navy. The project is to be completed by 31 March 2012.

The decision will help the Ministry of Defence to achieve its objective of providing accommodation within the targeted time.

The project will enable a large number of jawans and officers to live with their families in various locations, thereby reducing their stress level as pointed out in several studies conducted by various agencies.

All work in Phase-II of the Project will be executed through open competitive bidding. The new process would also reduce costs, as 7% charge payable to PSUs earlier would not be admissible. The delegation of enhanced financial powers to the three committees e.g., the Apex Steering Committee (ASC), Vice Chief's Committees (VCC) and Command Committees (CC), as in the case of Phase-I will continue because this has been found to be adequate.

Under Phase-I, 10,637 dwelling units have already been completed. Out of 86 stations, 100% work has been completed at 17 stations. The progress of work is between 75% to 99% at 35 stations and 50 to 75% at 16 stations. Nearly Rs 3465 crores have been spent for the project so far.

ANI