Policy on integrated townships on cards

Draft ready, waiting for approval by the government

To encourage and promote large scale integrated development of self-contained townships with private and public initiatives, the TS government will introduce a policy to promote development of integrated townships with public and private initiatives. Officials said this policy would result in optimisation of land use, leveraging of Outer Ring Road infrastructure and promote transit-oriented development. The officials have prepared a draft policy and are waiting for the government approval to issue a notification.

Officials said that this new policy would ensure economies of scale, increase housing facilities and make better provision for infrastructure facilities and amenities. It will have inbuilt incentives and safeguards that would ensure planned development not only in large urban areas but also in smaller urban centres so as to ultimately contribute to planned decentralisation and dispersal of urbanisation in the state and give impetus for the development of small and medium towns, the officials said. The main aim of this policy is to reduce the dependency on government lands for development.

In an attempt to giving impetus to planned development of urban areas and the surroundings of cities and towns and to encourage private sector investment foreign direct investment (FDI) in the real estate sector, the Telangana government will issue rules under this policy. These rules are applicable to all urban development authorities, municipal corporations, municipalities and the surrounding gram panchayat areas. These rules will also be applicable to private developers, companies, Special Purpose vehicles (SPVs) and firms. This policy shall now be valid for five years.

Under this policy, Category-1 includes a minimum of 100 acres in respect of Hyderabad Metropolitan Development Authority (HMDA) area and also lands located within 30 km distance from the boundary of HMDA. Category I includes a minimum of 50 acres in respect of other urban development authority areas such as Kakatiya urban development authority, Nizamabad urban development authority, Siddipet special development authority and others including other municipal corporation areas and also lands located within 15km distance from the boundary of such urban development authorities and municipal corporations. Category III includes a minimum of 25acres in respect of other municipality areas not covered by urban development authorities and lands located within 5 km distance from the boundary of such municipal areas.

For construction of townships that the land assemblage totally covering fertile agriculture lands or wet land are may not be preferred. The township project has to be an integrated township project and should necessarily provide residential, commercial, educational, amenity spaces, health facilities, parks, gardens, playgrounds and public utilities.

Meanwhile, the state government is considering some incentives for the development of integrated townships. Automatic exemption of such project from land regulations except for lands earmarked for water body use zone, buffer zone to water body, recreational use zone, Bio conservation zone, open space zone in the master plan.

Automatic exemption of such projects from application of land ceiling laws, 50 per cent stamp duty exemption on purchase of total land by the developer, 100 per cent stamp duty exemption for Economically Weaker Sections (EWS) and Lower Income Group (LIG) plots or built up units, 50 per cent stamp duty exemption for Medium Income Group (MIG) plots or built up units, waiver of conservation charges for land use modification to statutory master plan and zonal development plan. 50 per cent waiver of non agriculture conversion charges, 50 per cent of levy of development charges and other fees.