The Deccan Chronicle 18.08.2010
Explain Tellapur sops, HMDA toldHyderabad, Aug. 17: The state government has asked the Hyderabad Metropolitan Development Authority to justify the sops it recommended for the US infra giant Tishman Speyer in the Tellapur township.
Official sources said the Municipal Administration and Urban Development (MAUD) department has asked HMDA to justify the recommendation to decrease the Minimum Guarantee Amount (MGA).
The HMDA, while forwarding the request of Tishman Speyer to restrict the township project to 100 acres from the proposed 400 acres, proposed several incentives to the developer which are a deviation to the original agreement.
As per the original agreement with Tishman Speyer, HMDA should get 5 per cent revenue on the gross income or an MGA for five years whichever was higher. The MGA clause was included to ensure revenue flow to the HMDA even if the company did not implement the project to the desired levels.
The HMDA recommended that the new MGA should be worked out for 100 acres and reduce it by half.
Due to the new MGA, the company was required to pay only `39.15 crore as against the `80 crore the company would have had to pay.
Moreover, MAUD has also decided not to accept the HMDA’s proposal to release bank guarantee of Rs 16 crore provided by the developer. The HMDA suggested that the developer will mortgage the land equivalent to the bank guarantee. “This will work out to be four acres and as per the rules, the developer will have to mortgage 15 acres till the completion of the development,” a senior official pointed out.
