Cash-strapped HMDA to auction plots

HMDA has a present deficit of about Rs 1200 Crores and is spending a lot to servicing its debts to various institutions.

Published: 28th April 2012 01:35 AM  |   Last Updated: 16th May 2012 10:32 PM   |  A+A-

2

HYDERABAD: Running short of cash and in danger of defaulting on payment of salaries, the Hyderabad Metropolitan Development Authority (HMDA) has decided to auction as many as 41 plots in the last week of May to raise at least Rs 115 crore.

The plots, to be auctioned through e-bidding process, are located in the Miyapur extension layout, Nallagandla residential complex,  Ramchandrapuram, Asifnagar and other areas on the city outskirts. A lone yet big plot measuring 4.975 acres at Nandagiri Hills is also up for sale.

Speaking to City Express, HMDA member (estate) P Krishna Mohan Reddy said the five-acre land parcel in Nandagiri Hills will be crucial as a major chunk of revenue is expected from the plots there. Under the circumstances, it will be a jackpot for the HMDA if the land is sold out.

The HMDA had on a few occasions sought to auction the plots but the response from bidders was lukewarm due to the high minimum upset price of over Rs 20 crore per acre fixed by the civic body. In the proposed auction too, the minimum upset price has been fixed at Rs 18 crore per acre.

Due to severe financial crunch, the HMDA had to go in for open land auctions early this year. Due to the poor response, several plots remained unsold. The “left-over plots”, as they are referred to, are expected to fetch enough funds for the HMDA now to not only pay off salaries but also kick-start a few projects.

Several ongoing projects have either been put on hold or are going at a snail’s pace. Among them are the Outer Ring road (ORR), Radial Roads, intermediate ramps along the PV Narasimnha Rao Elevated Expressway, flyovers at Kukatpally, Sports Complex at Kattedan, Modern Bus Terminus at the old Gandhi General Hospital in Secunderabad and a road-over-bridge at the Sanjeevaiah Park.

According to officials, the present estimated deficit of HMDA is about Rs 1,200 crore and the civic body is also spending a staggering amount on servicing its debts to the various banks and financial institutions.

Neerabh Kumar Prasad, who will be taking charge as Metropolitan Commissioner of HMDA on Saturday, will have several challenges in the days to come and the top priority will be finding a source of income for the civic body. Else, the projects in the pipeline could be in danger of being shelved.

Stay up to date on all the latest Hyderabad 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