The south central zone of Life Insurance Corporation of India is looking at launching two housing schemes in Hyderabad and Bangalore for its policyholders at an approximate cost of Rs 42 crore (Rs 420 million). This apart, it is also looking at modernising 20 branches in the zone next fiscal.
Speaking to Business Standard, K P Bhat, chief engineer, LIC (south central zone), said, "We have earmarked 11 acres of land at Trimulgherry on the outskirts of Hyderabad wherein we will launch a housing scheme for the policyholders. We are planning to build 270 units (two-bedroom and three-bedroom flats) in the area at an approximate cost of Rs 22 crore (Rs 220 million)."
LIC had launched a similar scheme in Vizag where it had allotted 104 units to the policyholders based on lottery.
"The housing scheme at Vizag received an overwhelming response from the policyholders. We received 444 applications for 104 units," Bhat said.
"The allotment of the units (Rs 11 lakh to Rs 14 lakh each) has been done through a lottery method and the houses are likely to be ready within the next 18 months," he added.
"At Trimulgherry, we are awaiting necessary clearances from the Cantonment Board and are in the process of finalising an architect for the project. To get the clearances, we will have to wait for 9-12 months," Bhat said.
Disclosing LIC's housing scheme in Bangalore, Bhat said, "In Bangalore, we are planning to construct 140 flats at a total cost of between Rs 17 crore (Rs 170 million) and Rs 20 crore (Rs 200 million)."
The south central zone of LIC, comprising Andhra Pradesh and Karnataka, has so far allotted an approximate number of 1,000 houses to its policyholders.
Earlier, it used to allot row houses through the scheme, but has now switched over to flats. LIC calculates the cost of the houses on the basis of built-up area and not super-built-up area that includes common area like the staircase.
Apart from this, LIC is also looking at modernising 20 branches in the south central zone next fiscal. "So far, we have modernised 40 out of the 314 branches that we have in this zone," Bhat said.
"At present, we are modernising the Rajahmundry divisional office (DO) at a cost of Rs 1.5 crore (Rs billion). We are also proposing to modernise the Vizag DO," he added.
LIC will be spending around Rs 30 lakh on the modernisation of infrastructure at each branch office and around Rs 1.5 crore (Rs 15 million) for each divisional office in this zone.
The life insurance behemoth has around 100 divisional offices and 2,000-odd branch offices across the country.
- LIC has earmarked 11 acres of land at Trimulgherry on the outskirts of Hyderabad and plans to build 270 units at an approximate cost of Rs 22 crore
- Plans to construct 140 flats in Bangalore at a total cost of between Rs 17 crore and Rs 20 crore
- Has so far allotted approximately 1,000 houses to its policyholders