« HUDA To Raise Rs 5000 Crore For Projects | Home | Trying Times For The Home Loan Consumers »
HUDA Is Now Wholesale Dealer
Posted by Pradeep Sadanapalli | May 14, 2007 | 241 views
(No Ratings Yet)
Loading ...The Hyderabad Urban Development Authority (Huda) has become a wholesaler, it will no longer retail land to ordinary citizens, like you and me. Henceforth, it will sell or lease huge chunks of land to only real estate companies who will build apartment complexes. This will deprive ordinary citizens a chance to own a plot.Huda’s metamorphosis into a real estate broker follows some high profile land auctions it undertook last year like the Golden Mile project in Kokapet which saw land prices hit the sky. The entire auction was worth nearly Rs 700 crore, though Huda had to return Rs 400 crore to the successful bidders who bought 80 acres of land due to legal tangles.
The logic of Huda officials is that as land is becoming scarce in the city and outskirts so it makes no sense to auction house plots but instead sell or lease land to private developers to build apartment complexes. “The days when people could easily buy house plots are over in the city. They will have to buy apartments now,” Huda vice-chairman Jayesh Ranjan told ‘STOI’ on Saturday. But analysts perceive that its decision is because the government is depending more and more on revenue generating bodies like Huda to finance its various development programmes. Huda would either sell or lease about 2,000 acres of its land in the city and periphery to private companies to raise a record Rs 5,000 crore this year.
Huda owns 4,400 acres of land worth thousands of crores in Hyderabad, Ranga Reddy and Medak districts. At a recent board meeting, Huda had pegged its expenditure for 2007-08 at Rs 5,000 crore, which means that the urban body would have to raise that much money to spend. Huda does not get any allocation from the state government and as such it would have to raise the entire Rs 5,000 by taking up commercial projects. This is a record outlay in the history of Huda and double that of last year during which it raised Rs 2,500 crore.
SOURCES:
Times Of India
Topics: Real Estate |
Comments
You must be logged in to post a comment.