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Indian Real Estate News : Hyderabad
HMDA to auction land to fund ORR project
Source: Property Times (The Times of India, Hyderabad) Nov 01, 2011
With no funds to clear the bills of the Outer Ring Road (ORR) and other projects, Hyderabad Metropolitan Development Authority (HMDA) has decided to mobilise resources by auctioning land in November.

It has decided to mobilise at least Rs 200 crore within a month so as to pay Rs 165 crore to the contractors of ORR, as part of the Build, Operate and Transfer (BOT) annuity scheme. Apart from this, the urban development authority has to release funds for rail over bridge (ROB) at Hi-Tec City and leftover works (ramps) of the PVNR Expressway. HMDA had awarded 62 kms of ORR under package II-A under BOT-Annuity for a concession period of 15 years, including twoand-half-years construction period, in November 2007.

Five packages, namely Pedda Amberpet to Bongulur (13kms), Bongulur to Tukkuguda (13 kms) and Tukkuguda to Shamshabad (12.63 km), Narsingi to Kollur (12 kms) and Kollur to Patancheru (11.7 kms), all worth about Rs 2,439 crore were given to contractors. While the works of first three packages (Pedda Amberpet to Shamshabad) were completed in the first quarter of this year, two packages (Narsingi to Patancheru) were completed a couple of months ago and were thrown open for public.

In April, the contractors were given Rs 100 crore since works were incomplete. Now, the metropolitan authority has to pay Rs 165 crore under semi-annual annuity basis to the contractors. The officials are worried that if there is any delay in payments, the contractors may discontinue remaining works between Narsingi and Patancheru.

“HMDA has recently written a letter to the state government to release Rs 165 crore to the contractors since the authority is in financial crisis. As the state government is also in financial problems, the authority is making its own arrangements by way of land auctions,” a senior HMDA said.

Officials said the HMDA has been passing through financial crisis for the past few months with no source of revenue except through land auction, building penalisation scheme (BPS) and layout regularisation scheme (LRS). As no land auction has been conducted for the past few months, it was keeping itself afloat with the processing of pending LRS and BPS applications.

They too did not fetch much in the past one month due to the employees participating in the Sakala Janula Samme. Sources said HMDA has identified 4.75 acres in Nandagiri Hills of Jubilee Hills and about three acres plotted land in Gopanpally near Gachibowli for auction. Another eight acres of land at MLA Colony in Banjara Hills was also being considered for the auction. The authority hopes that the land auction might fetch about Rs 200 crore since it is prime land.

"There is a legal litigation over the Banjara Hills land and the authority is taking legal opinion whether to put up the land for auction or not. The HC verdict was in favour of the HMDA and the other party went for an appeal and again there is a status quo on the appeal," an official said. Apart from these parcels of land, about 60 leftover plots would also be put up for the auction. When contacted, HMDA estate officer G Ashok Kumar said the authority was planning to conduct an auction in November and exact dates were yet to be finalised.
Tag: hmda, hyderabad real estate, orr
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