Having set its eyes on inflow of funds to the tune of Rs.120 crore through auction of plots, a cash-strapped Hyderabad Metropolitan Development Authority (HMDA) doesn’t appear to be in a mood to hand over the money thus raised to the government.
In the earlier auctions held during the real estate boom, the authority had transferred huge amounts from auction to the government treasury for various welfare schemes.
In dire need of funds
But now, in dire need of funds for even its own ongoing projects, every bit counts and the possibility of fund transfer has been ruled out without hesitation.
Metropolitan Commissioner Neerabh Kumar Prasad was candid in admitting, “We need these funds for ourselves and our major priority is on completing ongoing works.”
He cites projects such as RoB at Kukatpally, Outer Ring Road and the ramp works for P.V. Narasimha Rao Elevated Expressway which were in different stages of completion.
At the same time, though the HMDA hopes of raising around Rs.120 crore from auction of 42 plots, the actual realisation would be decided by the fate of 4.695 acre site at Nandagiri Hills. The plot has failed to get buyers in earlier rounds of auction and the upset price has been brought down from Rs. 23 crore per acre to Rs.18 crore now.
Though a question mark seems to hang on whether the plot would get a buyer this time round, Mr. Prasad while announcing details of the auction quipped, “We are optimistic”. Since a major slice of the expected revenue -- about Rs.90 crore -- has to come from Nandagiri Hills plot, if it fails, the auction would not bring much cheer to the HMDA.
Speculations are rife on breaking this particular plot into smaller bits and placing it for auction, but the authority finds the move ‘not feasible’. Officials say the engineering wing tried to work out three to four different layouts but it did not work out.
The division of plots, road making and others factors such as topography associated with the location and level are seen as a costly venture.
