Merger could turn into curse for HMDA

Published: 16th September 2013 12:52 PM  |   Last Updated: 16th September 2013 12:52 PM   |  A+A-

The Hyderabad Metropolitan Development Authority (HMDA) loss is a gain for the Greater Hyderabad Municipal Corporation (GHMC) in terms of revenues.

The recent merger of the 36 gram panchayats into the GHMC is likely to create a 100 percent impact in terms of revenue generation to the HMDA.

Because of the merger, the HMDA will be a sinking ship as it will lose Rs 125-150 crore annually which it used to generate by giving building permissions to multi-storied buildings, commercial complexes, shopping malls and residential complexes and layout permissions within their jurisdiction.

Since the last six years, from a cash-rich body, the HMDA turned into a cash-starved body due to financial doldrums as revenue incomes has drastically been reduced after the merger of 12 surrounding municipalities into the erstwhile Municipal Corporation of Hyderabad in April 2007.

The HMDA officials told Express that the State government’s decision to merge three dozen gram panchayats into the GHMC limits is going to have a serious impact on the day-to-day functioning of the body.

Majority of these gram panchayats started growing rapidly because of their proximity to the Outer Ring Road (ORR).

Before the merger, the HMDA was happy that they could generate Rs 150 crore annually through building permissions, layout permissions, developmental charges with ORR’s completion. However, all their hopes were dashed with the State government’s recent merger.

In order to let the HMDA function smoothly, the government should transfer developmental charges that are collected while giving building permissions to the HMDA.

Stay up to date on all the latest Andhra Pradesh news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp