Govt hikes development charges
With the government imposing conversion charges and hiking the external developing charges by nearly ten times, the players in this sector are indicating that owning a house or developing a property may have just become a little more expensive for the people of state.
Housing and Urban Development (HUD) officials are, however, calling it a ‘rationalising exercise carried out on Haryana pattern and say that if needed government would step in to take charge if attempts are made to artificially hike prices.
In a notification issued on September 17, HUD had fixed external development charges (EDC), licence fee and imposed conversion charges for the entire state, other than areas falling under Greater Mohali Area Development Authority (GMADA).
The state has also been divided into three categories, namely high potential zone, medium potential zone and low potential zone, apart from GMADA which has highest charges.
For instance, if an industrial plot of one acre located on any sector road is allowed for conversion to commercial use the promoter would have to pay nearly Rs 3.16 crore by way of EDC, licence fee and conversion charges.
It may be recalled that the government in this year’s budget had proposed to raise Rs 200 crore from change land use (CLU) charges.
Arun Goel, secretary HUD, stated that the department has merely rationalised the fee structure by bringing it at par with Haryana. Panchkula and Mohali have been treated at par while the three corporation towns ofLudhiana , Jalandhar and Amritsar
‘‘The revision was necessary because of the entry of private investors who would like to have adequate infrastructure to match the facilities they propose to build. The state’s GDP is also to be brought at par with the national average and it has to be powered by urbanisation, which would happen only with more private investments,” Goel explained.
The new charges would be applicable on the new projects, however, if the existing projects carry the stipulation of revision of charges then they may also have to pay the new rates, officials added.
In high potential zone cities, real estate developers would now have to pay nearly Rs 34 lakh for one acre land instead of the earlier Rs 3.50 lakh fee.
In medium potential zone, the charges would be about Rs 30 lakh and for low potential zone these would be about Rs 21 lakh. Real estate developers have decided to meet on Wednesday and talk to the government on the issue.
The burden would be passed on to the consumer finally, so everybody would be affected, a union leader stated. However, officials feel that the builders have enough margins to not let buyers feel the pinch.
Housing and Urban Development (HUD) officials are, however, calling it a ‘rationalising exercise carried out on Haryana pattern and say that if needed government would step in to take charge if attempts are made to artificially hike prices.
In a notification issued on September 17, HUD had fixed external development charges (EDC), licence fee and imposed conversion charges for the entire state, other than areas falling under Greater Mohali Area Development Authority (GMADA).
The state has also been divided into three categories, namely high potential zone, medium potential zone and low potential zone, apart from GMADA which has highest charges.
For instance, if an industrial plot of one acre located on any sector road is allowed for conversion to commercial use the promoter would have to pay nearly Rs 3.16 crore by way of EDC, licence fee and conversion charges.
It may be recalled that the government in this year’s budget had proposed to raise Rs 200 crore from change land use (CLU) charges.
Arun Goel, secretary HUD, stated that the department has merely rationalised the fee structure by bringing it at par with Haryana. Panchkula and Mohali have been treated at par while the three corporation towns of
‘‘The revision was necessary because of the entry of private investors who would like to have adequate infrastructure to match the facilities they propose to build. The state’s GDP is also to be brought at par with the national average and it has to be powered by urbanisation, which would happen only with more private investments,” Goel explained.
The new charges would be applicable on the new projects, however, if the existing projects carry the stipulation of revision of charges then they may also have to pay the new rates, officials added.
In high potential zone cities, real estate developers would now have to pay nearly Rs 34 lakh for one acre land instead of the earlier Rs 3.50 lakh fee.
In medium potential zone, the charges would be about Rs 30 lakh and for low potential zone these would be about Rs 21 lakh. Real estate developers have decided to meet on Wednesday and talk to the government on the issue.
The burden would be passed on to the consumer finally, so everybody would be affected, a union leader stated. However, officials feel that the builders have enough margins to not let buyers feel the pinch.
Source : Timesofindia.com (
Ramaninder K Bhatia
,
TNN)
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