From ET Realty
HYDERABAD: Monetary compensation may soon be a thing of the past for people losing their land for road widening in Telangana. Considering the financial crunch in urban local bodies (ULBs), the state government has decided to incentivize land-losers with transferable development rights (TDR) instead of paying them compensation. “In view of the New Land Acquisition Act 2013, the cost of compensation has become very high and ULBs are not in a position to pay it for taking up road widening works. In such cases, TDR would be provided,” said a release issued by the chief minister’s office (CMO) on Monday.
According to the Act, the government has to pay twice the market value of land in urban areas if acquired. TDR is a method of compensation wherein the land owners are given per mission to develop the building with a relaxation in terms of setback and additional floors. Land owners can monetise by selling this right since it is transferable.
The government has also decided to give TDR to those whose plots get affected under `Master Plan’ road projects on a par with gated community projects if applicants are willing to give their land for a 40-feet peripheral road.
Apart from this, the government has taken a slew of measures to encourage the burgeoning real estate sector with a policy of `ease of doing businesses’. However, these measures were approved by the state cabinet when it met on Saturday.
Among the other decisions, the city level infrastructure impact fee has been reduced to encourage high-rises and accordingly , only two slabs have been fixed as against the current four. One slab is up to 17 floors and second slab for above 17 floors. Rates would be ranging from Rs 500 per square metre to Rs. 1,500 per square metre in GHMC areas and Rs 175 per square metre to Rs. 500 per square metre in HMDA. With this incentive, it is expected that more number of high rise buildings will come up and thereby increase the revenue of ULBs.
Also, the collection of value addition charges, which is Rs. 100 per square metre in the Cyberabad Development Area (CDA), has been withdrawn to avoid double taxation, the reason being most of the CDA area has now become part of GHMC and the civic body collects external betterment charges.