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State wants to sell land fast, fears rate slump
Posted by Srini Uppala | December 8, 2007 | 456 views
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Loading ...The government does not want to risk a slump in land rates because of the changing political scenario and is speeding up sale of land to raise funds for its irrigation and welfare projects. The Chief Minister, Dr Y.S. Rajasekhar Reddy has asked government bodies to raise almost Rs 19,000 crore by end of March 2009.
The AP Industrial Infrastructure Corporation, Hyderabad and Visakhapatnam urban development authorities and the AP Housing Board have been asked to remit Rs 2,875 crore by December-end. The government set a target of Rs 8,700 crore in 2007-2008 for APIIC, HUDA, VUDA and AP Housing Board through auction of land and setting up joint ventures and Rs 10,000 crore during 2008-09, a total of Rs 18,700 crore.
“Excess” land belonging to three new organisations — VDO Training Institute at Budvel in Rajendranagar mandal, IDL and Hyderabad Chemicals Limited located on the city outskirts — has been identified for sale. “The APIIC which was given a target of Rs 3,000 crore for 2007-08 has promised to remit Rs 2,200 crore.
“So far, APIIC has remitted Rs 1,500 crore. We are confident of meeting the target by March 2008,” APIIC managing director, Mr B.P. Acharya, told this correspondent. Sources said the Chief Minister has asked the finance minister, Mr K. Rosaiah, and Mr Raghottam Rao, the Chief Commissioner and Land Administration (CCLA), to identify land held by VDO Training Institute at Budvel, IDL and Hyderabad Chemicals Limited. If the land is clear, he asked the CCLA to take a decision in the Empowered Committee.
He reportedly asked the finance minister to sort out problems faced by Huda, Vuda and others in the sale of land. The government is finding it tough to raise Rs 70,000 crore need for irrigation projects, free power, welfare schemes including pensions, and the proposed 2-kg rice scheme among others. “Funds are scarce. We have not heaped taxes on people. We have no option but to raise funds through sale of lands,” a senior minister said. “The government is keen on fulfilling its promises before the elections and going to the people with a clean slate,” he said.
SOURCES:
Deccan Chronicle
Topics: Govt In Action, Real Estate, Infrastructure |
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