It is estimated that the levy would increase the cost of a 1,000 sq feet apartment by Rs 5,000. The department suggested that the cess should be collected from the end user of material such as sand and stones. It also wants to link the sanction of building plans to the payment of cess to ensure effective realisation of the amount.

“We will ask the municipal authorities to make payment of cess one of the mandatory conditions to release the building plans,” said a senior official of the mines department. “Builders also agreed to the single point collection.” Sources, however, said the department and builders are yet to come to a final agreement on the special cess.

“Builders want us to cap the cess at Rs 2 per sq ft but we want it to be somewhere around Rs 5 to Rs 6 per sq ft,” added the official. There is also disagreement on the mode of payment. While the department wanted one-time payment, builders want it to be in instalments stretching to two or three years.

“We are already burdened with impact fee, development charges and fee for changing land use,” said Mr C. Sekhar Reddy, president of Builders Forum. “The civic authorities and mines department should allow payment in instalments.” Though there was also a suggestion from the builders to collect the cess at the time of registration of the property, the officials turned it down.