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HUDA Justifies Hike In Development Charges
Posted by Pradeep Sadanapalli | June 24, 2007 | 296 views
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Loading ...The Hyderabad Urban Development Authority has increased the development charges for layouts under its jurisdiction manifold.
Though HUDA says revision of development charges comes after 12 years following rising infrastructure development cost over the years, the enhancement literally came as the last straw for the people already reeling under the impact of run away real es tate prices and increase in home loan interest rates.
HUDA says the hike after 12 years is justified. When realtors were raking in astronomical prices for the land as well as apartments, HUDA which provides basic infrastructure like major roads to access a layout, power etc., gets only a fraction of price at which the realtors and builders sell plots and apartments. The revenue earned by HUDA through development charges would again be spent on infrastructure development.
HUDA Vice-Chairman Jayesh Ranjan says the rates increased by two-and-a-half to five times are reasonable if calculated in real terms and given the increase in Standard Schedule Rates (SSA) for construction material by 10 per cent every year. While HUDA was getting a revenue of Rs.50 crores to Rs.60 crores through development charges, now it would go up to Rs.150 crores.
For instance as per the enhanced rate, Rs.100/sq.m will be charged for the built up area in Greater Hyderabad Municipal Corporation into which the surrounding municipalities are also merged and for land it will be Rs.75 per sq.m.
To illustrate further, for the end user purchasing a 200 sq.m plot, the hike would translate into Rs.15,000 and for a 1,000 sft apartment, it would be Rs.10,000. On the whole it would be an increase of one time hike of Rs.25,000 in GHMC area and much less outside GHMC area.
About 85 per cent of income from development charges would be utilised to implement the provisions of Master plans ie traffic improvement, construction of flyovers, bridges, development of green belts and parks and 15 per cent of the amount would be utilised for administration and other maintenance.
But the common complaint of citizens is that despite collection of development charges, many layouts still lack in basic facilities. However, HUDA authorities clarify that HUDA’s responsibility would be to provide trunk infrastructure like major roads to the colony, power etc. It was the responsibility of the developer to provide internal roads and other amenities . In case of HUDA approved layouts, HUDA would not give final approval unless the developer provided all the facilities inside the layout as per the HUDA norms. If people purchase plots in layouts without HUDA approval in spite of repeated caution, then HUDA cannot be held responsible, they maintain.
Officials however say that HUDA would have to continue to depend on revenue generated from land auctions, financial aid from monetary agencies to fund its massive infrastructure projects that run into thousands of crores.
HUDA as a planning and infrastructure building organisation so far constructed 17 flyovers, NTR Gardens, Lumbini Park, the popular Necklace Road, Inner Ring road, and now funding Outer Ring Road, radial and important link roads and Elevated Expressway, they say.
SOURCES:
The Hindu
Topics: Govt In Action, Real Estate |
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