HYDERABAD: HMDA is planning to auction 200 acres in Kokapet in Rajendranagar mandal, which is likely to fetch Rs 5,000 crores going by the current market rate of the land there.
Sources said the state government is keen on auctioning the land to cash in on the real estate market, which is at its peak. Also, it needs money to complete ongoing projects and other flagship schemes, sources said.
The government asked the Hyderabad Metropolitan Development Authority (HMDA) to provide infrastructure and amenities on the land parcel. Officials said HMDA is contemplating auctioning 200 out of 630 acres in a month. HMDA’s auction of 67 plots in Uppal Bhagat area in April fetched Rs 670 crores. A senior official of HMDA said that going by the market value, the government may get around Rs 5,000 crores to Rs 6,000 crores. Each developed parcel will be between five acres and 15 acres, which are suitable for IT firms and big business houses.
HMDA sources said the authority’s planning department has been asked to complete infrastructure facilities on the entire 630 acres such as roads, underground drainage, water supply, streetlights, footpaths and greenery as earlier auctioned land did not have the facilities. Survey of the land has already started.
Municipal administration officials said of the 630 acres, around 350 acres has either been sold or allotted to various departments and organisations by the state government and only 280 acres is left. An official of the municipal administration wing said that after development of the land, leaving mandatory space for various amenities, the net plotted and auctionable land will be around 200 acres.
The land was caught in legal wrangles for many years. HMDA claimed it won the legal battle in the Supreme Court over the title dispute. Some firms, which took the land during previous auctions in 2006, did not pay the total amount over the land ownership.
Meanwhile, HMDA is waiting for the government’s approval to go ahead with development of the balance land in Uppal Bhagat and put it up for auction.
Officials said mobilising funds for funding various projects is not new. HMDA conducted auctions at KBR Park near Jubilee Hills checkposs, Kokapet and other land parcels owned by then AP Housing Board. HMDA contributed Rs 2,500 crores to then government.
Source: ET Realty