Telangana government gets into action; to sell off lands for funds

Hyderabad: Even before the Budget is formally adopted by the Assembly, the state government has begun identifying litigation-free lands, which it wants to sell to mop up funds.

It is estimated that these lands would fetch the government about Rs 30,000 crore.

It is learnt that to rake in the moola, the government is actively considering inviting foreign investments in a big way in the construction activity soon.

Chief Minister K Chandrashekar Rao told the ministers at the recent Cabinet meeting that the government had got legal clearances in regard to ownership of 4,000 acres of costly land in Kokapet, Puppalaguda and Mokilla, Pratapasingaram and in some places in Medchal district.

These lands can generate more than Rs 10,000 crore as the land value has gone up manifold in the Greater Hyderabad limits. Sources said, KCR will soon hold a high-level meeting to finalise modalities and incentives to encourage foreign direct investments in the realty sector in the state.

In the first phase, aiming to generate Rs 3,000 crore, the government has decided to dispose of the assets owned by the debunked Rajiv Swagruha Corporation.

It has constituted a three-member official committee, headed by special Chief Secretary to Housing Chitra Ramachandran. The Corporation was floated by then Chief Minister YS Rajasekhar Reddy in the erstwhile Andhra Pradesh in 2007.

The Corporation had planned 32 projects, consisting of about 46,565 units to construct about 4 crore square feet with an estimated cost of about Rs 8,504 crore.

The Corporation had constructed apartments aiming to provide affordable housing to the middle classes in Bandalguda, Jawahar Nagar, Pocharam in Hyderabad and independent houses in major municipalities like Khammam, Warangal and Karimnagar. Most of the units remained unsold due to various reasons.

After the formation of Telangana, the state government cleared bank loans and released all projects from mortgage. The government's efforts to sell the properties did not receive positive response till today.

Officials said that the committee will review the status of the Swagruha properties and finalise the market price. The realty companies will also be invited to take over the lands and the apartments.

Soon after the disposal of the corporation properties, officials said that the government will start selling open lands in the open auction on the lines the Uppal Bhagawat lands were sold getting nearly Rs 1,500 crore revenue to the state exchequer.

Nearly 1000 acres of vacant lands were identified in the possession of the state Housing Board.

According to official figures, in Ranga Reddy and Hyderabad districts, the board possesses 640 acres of land and another 350 acres in other districts.