Tuesday, July 29, 2008

HUDA needs to raise Rs 3,500cr

The Hyderabad Urban Development Authority (Huda) has requested the government to withdraw the economic weaker sections (EWS) clause to enable it to sell government land. Huda needs to raise over Rs 3,000 crore by auctioning land and hand over the money to the government. But it has failed to do so as builders and developers are against allotting 20 per cent land for EWS.

Huda officials have already sent feelers to the government stating that the clause is acting as a major bottleneck in the auctioning process. Now, they are planning write a letter to the government seeking removal of the clause or at least provide tax exemptions to the builders. Some Huda officials also feel that the Rs 1 lakh crore budget presented by the government has turned out to be a burden for the development agencies. The government had said nearly Rs 12,500 crore would be raised through the auctioning process.

Towards achieving this endeavour, the government has fixed various targets for agencies like Huda, Andhra Pradesh Industrial Infrastructure Corporation, AP Tourism Development Corporation and Andhra Pradesh Housing Board to raise the money through auctioning. Huda, which even tried to sell land through the e-auction process, failed to make much progress. The Huda secretary, Mr D. Rama Rao, refused to comment on the EWS clause and said they will auction land in accordance to government rules

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