It remains a plan and GHMC had looked at taking over areas under the Industrial Area Local Authority (IALA) in the past too, yet unit holders in 14 such facilities are not taking the civic body’s purported proposal lightly.
Behind their posturing is not just the fear of losing hold over areas whose maintenance and management they did for nearly two decades, but the possibility of opening doors to political interference.
“If there is a threat, you cannot be caught sleeping,” exclaims Rakesh Jain, chemical manufacturer in Jeedimetla cluster – one of the IALAs.
IALAs, he says, were conceived in response to entrepreneurs at various industrial estates of AP Industrial Infrastructure Corporation complaining of inadequate infrastructure and maintenance.
Transfer of powersWith self-governance as the basis, a total of 174 such areas, including 14 in the city, were identified. Powers for managing and administering them, including property tax collection, was transferred to APIIC in 1994. Industrial area service societies comprising elected representatives of the unit holders were also notified.
Co-convenor of IALA Federation Sudhir Reddy says 35 per cent of taxes collected went to GHMC, eight per cent towards the library cess and the rest to the respective authority. A Commissioner drawn either from APIIC or the Industry department headed each of the IALA.
“Our tax collection remains very efficient at 90-95 per cent and administrative cost is low. We also grant building approvals,” claims Mr. Jain. Some of the highest revenue generating localities in Madhapur and environs too come under IALAs.
Merger of the 14 IALAs with GHMC is unlikely to impact those elsewhere in Telangana since their tax revenues are not lucrative, points out Mr. Reddy. The Federation of Telangana Notified Municipal Industrial Area Service Societies had voiced concern recently over GHMC allegedly submitting a proposal to Chief Secretary for the merger.
A few years ago, GHMC corporators had passed a resolution for merger of areas under IALAs, Mr. Jain claims.
Higher property taxOne of the apprehensions is the possibility of having to pay high property tax post-merger. Trade and industry body FTAPCCI’s president Shiv Kumar Rungta says despite Telangana’s industrial policy favouring IALAs for future development, uncertainty prevails.
Mr. Sudhir Reddy is hopeful of the Chief Minister K. Chandrasekhar Rao intervening since he spoke in support of IALAs last year.
