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.