The Hindu 07.01.2011
HMDA seeks 450 cr. from State
Plans to utilise funds for Outer Ring Road project
A generous contributor to the government coffers when real estate was
booming, the Hyderabad Metropolitan Development Authority (HMDA) has now
been reduced to looking forward for assistance.
Given the prevailing real estate scenario and the demand
for its plots failing to get restored to the boom phase and also the
continuing inactivity on layout and permissions front, the Authority has
sought Rs.450 crore from the government for meeting financial
requirements for the ongoing Outer Ring Road (ORR) project.
The debts of the HMDA stand at Rs.1,100 crore, of which
Rs.700 crore is to the Housing and Urban Development Corporation (HUDCO)
and the rest to different financial institutions.
The interest being paid every month towards this amount
works out to be around Rs.10 crore. “The amount of Rs.450 crore we
sought from government is towards annuity payments of the ORR,” said an
official.
To tide over its financial crunch, the HMDA had made
repeated efforts at raising money through auction of its plots but
except for once last year, it failed to get much response.
Though toying with the idea of placing plots that
earlier failed to get bidders, again for auction, the prevailing real
estate scenario has been acting as a deterrent for such a course of
action, another official said.
The HMDA also looks at enhancing its land bank and is
hoping that the government will provide it adequate tracts. “We may not
be able to auction them immediately and raise money, but it will be a
good asset for us,” the officials maintained. Apart from sale of land,
the planning department of the HMDA happens to be a major contributor of
revenue through layouts and regularisations.
The HMDA describes its financial status as neither good nor bad and one official said, “It is just standstill”.
The basic revenue and day to day requirements were being
met but it left no scope to look beyond to consider any new project.
“If the government comes to our help with say around Rs.700 crore, we
will really be in comfortable situation,” the official added.
