Asset collection challenges pose headache for GHMC officials

HYDERABAD: The Greater Hyderabad Municipal Corporation (GHMC) is currently grappling with significant challenges in acquiring 129 properties around KBR Park. This acquisition is essential for the development of flyovers, underpasses, and road widening projects, particularly along Banjara Hills Road No.12, stretching from Virinchi Hospital to KBR Park. The property acquisition process has become a substantial headache for officials, primarily due to compensation complexities.

Compensation strategy: Transfer of Development Rights (TDR)

To facilitate the necessary land acquisition, GHMC has proposed compensating property owners through Transfer of Development Rights (TDR). This approach allows property owners to receive development rights in lieu of monetary compensation. The decision stems from financial considerations, as officials estimate that approximately half of the ₹1,090 crore project budget would be consumed by land acquisition costs if compensated monetarily. Notably, during the previous administration’s Strategic Road Development Plan (SRDP) projects, TDR was predominantly utilized as compensation.

Identification of properties for acquisition

The focus of the development includes key junctions around KBR Park: Maharaja Agrasen Junction, Film Nagar Junction, and Road No.45 Junction. Collectively, 129 properties have been identified for acquisition:

– Maharaja Agrasen Junction: 34 properties
– Film Nagar Junction: 43 properties
– Road No.45 Junction: 36 properties

GHMC has issued notifications for the acquisition of 82 properties, encompassing an area of 17,512.62 square yards. Notably, several properties at Film Nagar Junction are owned by leaders from various political parties, including Congress, BRS, and TDP.

Understanding TDR compensation

Under the Land Acquisition Act, monetary compensation is typically calculated at twice the market rate for land and structures. However, GHMC’s TDR approach offers four times the land area in development rights. For instance, a loss of 20 square yards would yield 80 square yards in TDR. This method, introduced in 2017 by the previous government, was initially met with reluctance by the current Congress administration but is now being reconsidered.

Debate over Floor Space Index (FSI)

Discussions are underway regarding the implementation of Floor Space Index (FSI) regulations to enhance the demand for TDR. However, current market conditions indicate a lack of interest in purchasing TDRs, with reports suggesting that even when purchased, only 25-30% of the expected demand is realized.

The GHMC’s reliance on TDR for property acquisition around KBR Park presents both financial prudence and practical challenges. As officials navigate compensation strategies and market dynamics, the success of these infrastructure projects hinges on effectively addressing these complexities.