HYDERABAD, JAN. 4. The Chief Minister, Y. S. Rajasekhara Reddy, today announced a massive housing programme for the urban poor, regularisation of encroachments for housing and water connections at reduced charges and hinted at extension of the date for payment of property tax without penal interest till January-end.

At a two-day conference of district Collectors and Municipal Commissioners, Dr. Reddy spoke of a plan to construct 42 lakh houses in the next five years, 15 lakh of them in the urban areas. This apart, a scheme of building one lakh houses with a unit cost of Rs. 75,000 for the poor in Hyderabad and Ranga Reddy district would be launched shortly. This scheme with 90 per cent loan from banks would be in addition to the regular housing programmes.

The conference was aimed at drawing a road map of reforms in urban governance to ensure better service delivery to people.

But, the conference appeared to be a preparatory one for the impending elections in 109 municipalities and the Rajiv Nagara Baata being launched by the Chief Minister on January 9 if the speeches of Dr. Reddy and his Cabinet colleagues were any indication.

Funds no problem

Dr. Reddy and the Municipal Administration Minister, K. Ranga Rao, emphasised on visibility of the municipal projects and services, saying funds were not a problem and 40 per cent of it would be spent on slum development.

The former in fact asked the Municipal Commissioners to take a round of municipalities at 5 a.m. daily to monitor the services.

The water supply connection rate had been brought down from Rs. 5000 to Rs. 1200 to be paid in 12 instalments.