VIJAYAWADA: The Andhra Pradesh Capital Region Development Authority (APCRDA) has begun the process of finalising the tariff for utilising the underground utilities being developed by it in Amaravati. Once the tariff is finalised, the private and commercial spaces will have to pay the lease amount fixed by the authority to utilise the services.
The leasing of the underground utilities, which include power ducts, Information and Communication Technology (ICT) grid, sewage line, water, gas and others, is one of the major sources of revenue generation for the APCRDA.
“We have prepared the strategies for revenue generation, which is in circulation at the government level. The plan envisages various revenue strategies such as leasing the underground utilities being developed by APCRDA and Amaravati Development Corporation Ltd (ADCL) and land monetisation. It is likely to get the approval of the council of ministers by January-end,” APCRDA Principal Secretary Ajay Jain told TNIE.
While land monetisation, for which the authority reserved 5,000 acres, will be used to generate most of the income, the leasing of utilities will be the other sources. The officials also said that revenue would be generated from the fee set for building and other approvals. While the lease tariff is expected to come into force by the end of this year or early next year, the auction or the sale of the land for monetisation will likely to happen only after 2021.
The APCRDA officials further explained that the lease tariff would be fixed at competitive rates. “The leasing of utilities will not only help us make revenue, but will also bring down the establishment charges of the developers as they need not spend on those facilities while executing a project. We are also providing firefighting equipment,” another official added.
As per the white paper released by the State government last week, 100 per cent of 45-km water supply network, 100 per cent of 123-km sewerage network, 100 per cent of 90-km power and ICT network and 90 per cent of 640-km storm water network works are under construction. They are expected to be completed by mid-2019.
The utilities will be developed for the Land Pooling Scheme layouts as well. It may be noted that the APCRDA is developing the underground utilities along with the roads so that there would not be any necessity to dig them up in the next few decades for any foreseeable purpose.
Revenue generation source
The leasing of the underground utilities, which include power ducts, ICT grid, sewage line, water, gas and others, is one of the major sources of revenue generation for the APCRDA.