HUDA to get revenue for the time-being from building, layout approvals

Preparation of master plan for additional areas to take about a year
HUDA earns Rs.70 crore to Rs.100 crore from the 12 municipalities

HYDERABAD: The State Government has taken a decision to allow Greater Hyderabad Municipal Corporation (GHMC) to have development control over the 12 surrounding municipalities that were merged with the erstwhile municipal corporation along with the city core area.

However the fee collected for the layout approvals and building permissions in these municipalities will be remitted to the Hyderabad Urban Development Authority (HUDA) for the time being.

The Chief Minister Y.S. Rajasekhar Reddy took this decision in keeping with the constitutional spirit to involve the local body in the planning while at the same time not depriving HUDA of its revenue, say authorities.

Earlier, the HUDA delegated all powers to the erstwhile municipal corporation, while retaining the development control power with regard to 12 municipalities’ areas.

With the GHMC area increasing from 170 to 635, there was speculation whether ‘total delegation of powers’ would automatically become applicable to the newly added areas along with city core area.

But the HUDA represented to the Government to let it retain development control till the master plan for the newly enhanced area of the HUDA (from the present 2,000 to 6,500 with 54 mandals of Hyderabad, Ranga Reddy, Medak, Nalgonda and Mahabubnagar districts) was prepared and the development activity in those areas picked up.

The HUDA estimated that the preparation of the master plan for those additional areas would take about a year for completion and therefore it requested the Government to let the development control remain with it till such a time as any revenue loss would affect the ongoing HUDA projects.

The HUDA earns Rs.70 crore to Rs.100 crore through building permissions and layout approval fees in these municipalities which it leverages to get bank loans for its projects including the Outer Ring Road.

“The balance sheet is important for the HUDA to raise loans..Though the development control would now rest with the GHMC the HUDA would continue to get the revenue till the new areas under it would start yielding revenue,” said HUDA authorities.