HYDERABAD: There was a time when Hyderabad Urban Development Authority (HUDA) was exploring various means to raise resources for its ambitious Outer Ring Road and other projects. But with a sudden and steep spurt in the value of lands under its jurisdiction, it seems to have overcome financial constraints.

HUDA through a series of auctions this year, including last week's auction of Golden Mile layout in Kokapet village, has raised Rs.1,461 crores so far. Of it the Government's share is Rs.736 crores -- Rs. 400 crores from Kokapet land auction and Rs. 336 crores from a five-acre land in Jubilee Hills which HUDA auctioned on behalf of Government. HUDA would utilise the remaining Rs.725 crores for ORR and other projects.

While Golden Mile layout yielded Rs.703 crores, the auction of 51 plots in its layouts last week fetched HUDA Rs.72 crores. HUDA Vice-Chairman Jayesh Ranjan said that the Government had not stated that the entire proceeds of Kokapet land be remitted to it. HUDA earmarked Rs.350 crores raised by it in February through auction of plots to meet land acquisition cost for ORR second phase. A part of Rs.375 crores raised through auction would be used for paying annuity to the developer of the Rs.700-crore ORR second phase, Mr. Jayesh Ranjan said.

Annuity plan

Under the annuity model, it would be responsibility of the developer to raise entire funds while HUDA would repay through annual instalments. However, HUDA decided to contribute Rs.150 crores so that its annual instalments would come down while the developer/consortium would raise rest of Rs.550, Mr. Ranjan said. HUDA had secured a Rs.500-crore bank loan for ORR first phase by mortgaging 100 acres at Kokapet and work on Phase I commenced. Of 500 acres of land with HUDA at Kokapet, 100 acres was mortgaged to banks and 125 acres was allotted for SEZ for IT sector. In the remaining 275 acres, there would be no public auction and it would be utilised for Integrated Township development, Mr. Ranjan disclosed. It however would auction its Shamshabad layout earmarked for Hotel Zone for raising more funds for ORR project before this year-end.

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