HYDERABAD: The government on Thursday enhanced the development charges
imposed on builders for construction of buildings in the extended areas
of Hyderabad Metropolitan Development Authority (HMDA) by 50 per cent.

The municipal administration and urban development (MA&UD) department issued a GO increasing the development charges. HMDA
has been collecting only 25 per cent of the actual development charges
from builders since February 2009 to encourage building activity in the
extended area and also in view of slowdown in the real estate activity. That was done mainly on the request of builders and also on the recommendation of the metropolitan authority.

The builders will now have to pay 75 per cent of the actual development
charges. The GO stated that several development activities have come up
in the extended area of the authority. covering about 620 villages and
municipalities of surrounding districts like Bhongir and Sangareddy.

While there is need to encourage development, at the same time the
HMDA’s financial position is precarious and the development charges are
the only source of regular revenue for the authority.

“The HMDA
will collect 75 per cent of the development charges in the erstwhile
Huda and Hyderabad Airport Development Authority ( Hada) jurisdiction as per the GO 439 issued in June, 2007,” the GO said.