KCR announces several sops for realty sector

Telangana Chief Minister K. Chandrasekhar Rao has announced several sops to the realty sector in the State, particularly in Hyderabad, including removal of valued added tax (VAT) and extension of the single-window clearance system being evolved for the industrial sector.

Though Hyderabad was best suited for growth of trade and commerce because of its climatic conditions the Chief Minister, however, said on Friday that development of the city did not take place scientifically. He attributed the problems such as traffic snarls, inundation of habitations during rains and overflowing drains in the city to haphazard development.

Speaking after inaugurating the three-day property show organised by Confederation of Real Estate Developers’ Association of India (CREDAI), he promised to develop Hyderabad beyond the expectations of people. Offering single-window clearance to real estate developers and making an act for the realty sector’s development would be among the steps towards this. The single-window system would be evolved after a meeting with representatives of the realty sector, he said.

“There is no meaning in levying VAT again on realty sector when it is being paid for every material that is going into construction activity,” the Chief Minister said, adding that people of Telangana had placed huge hopes on him and he would go to any extent to keep these hopes. He also promised to withdraw ‘nala’ cess being collected from real estate developers.

Further, he announced rationalisation of seigniorage fee to Rs. 3 per sft of the built-up area, allowing payment of impact fee in instalments as one-time payment was burdensome to the developers and simplification of issuance of NOCs.

Stating that the government was planning to construct four-lane roads linking east-west and north-south corridors with about Rs. 24,000 crore in the next five years for easing traffic congestion, the Chief Minister said the corridor connecting Vanasthalipuram with Ramachandrapuram would be taken up first with Rs. 10,000 crore. The existing streetlights in the city would be replaced with LED lights and stormwater drains would be revived by clearing encroachments to get rid of waterlogging on the roads and in colonies after a heavy shower, Mr. Chandrasekhar Rao said.