Telangana, the youngest state in the country, has introduced several policy initiatives including the New Municipal Act to help the underprivileged buy their dream house without any hassles.Now, even the poorest sections of society can aspire to live in their dream home in Telangana. As per the legislation passed by the state government, construction of ground plus one floor will not require permission from local administrative bodies. By just paying a nominal fee of Re 1, such houses would be registered, thus providing massive relief to the lower strata there.
Under the Telangana Municipal Act 2019, to construct a ground plus one-floor house (G+1) in a plot of land measuring 684 sqft, the plot owner is spared the hassle of running to various departments to get approvals for constructing a house. Construction work can begin immediately once the customary fee of Re 1 is paid, and all property related documents are uploaded. Moreover, the mandatory No Objection Certificate (NOC) required after the construction of the house is done away with now. Additionally, the annual property maintenance tax is just Rs 100.
However, the responsibility now lies with the plot owner to ensure that all necessary nuances of construction, including the treatment of sewage waste, are adequately taken care of. The complete list of documents like the floor plan, land records and the records of the plot owner has to be uploaded on the government site. A layout committee then verifies all the documents based on set parameters. The committee has been given the power to cancel the construction permission if the details uploaded are inadequate or the layout plan turns out to be bogus. Apart from this, other penal action could also be a three-year jail term, or a fine of 25 percent of the land cost could also be levied.
The citizens living in the respective jurisdiction have to apply by logging into Greater Hyderabad Municipal Corporation (GHMC) and Hyderabad Metropolitan Development Authority (HMDA) websites.
Earlier, the Telangana government had come out with an initiative to ease out the permission process for the industries as well. The Telangana State Industrial Project Approval and Self Certification (TS-iPASS) proved to be a success in giving permissions to the various sectors. As a result, the government wanted to replicate the same mechanism for giving building permissions in Urban Local Bodies (ULBs) through the Telangana State Building Approval and Self-Certification System (TS-BPASS).
Devendar Reddy, Chief City Planner, Greater Hyderabad Municipality Corporation (GHMC) explains that the act would undoubtedly be beneficial for the economically weaker sections of the society. “It will help people from low-income groups to apply for home loans to construct their houses. Banks only furnish loans to projects that have all the approvals in place. With the new scheme, getting a home loan from a bank would be relatively easier,” he says.
Reddy further says that though the main aim of this Act is to help the people, the ultimate objective is to achieve planned development for the city. “For now, the government is not focusing on revenue generation, but the development of the city is a priority. Earlier, people had to pay several fees to construct a G+1 house, which is not the case now. They just have to pay Re 1 and submit their documents online, and it’s done,” he explains.
The people of the state have welcomed this step taken by the government, and feel that with this decision, the city will set an example for the rest of India to follow suit.
Ravi Sanjogu, 43, a resident of Kukatpally, a suburb in the city, says that the government is making massive changes in the state and the only focus is to develop the city like other major metros in the country. “It will be easier to build a house after this Act is implemented properly,” he says.
Can this Act be replicated in other cities?
Admitting that the new Act will speed up the supply flow of the realty market in Hyderabad, Pankaj Kapoor, MD, Liases Foras, a real estate rating agency explains that this act would only benefit Tier-II cities “As smaller cities only encourage independent houses like G+1. Other major cities (read metro) motivate vertical development due to lack of space issues or many other reasons. Hence, smaller cities like Kanpur or Lucknow can benefit from this Act and so should be advised to adopt it in their cities,” concludes Kapoor.
- As per the World Bank 2030; report, the urban poor population in India is over > According to Mckinsey, 25 percent, which is close India’s urban population to 81 million people; will grow from 340 million in 2008 to 590 million in > According to a survey 2030; by the UN State of the World Population report, > Hyderabad has the 40.76 percent of India’s second largest urban poor population is expected to population in India – over reside in urban areas by 23 percent.
- According to the World Bank’s classification of countries by income levels, India still falls in the category of a lower-middle-income country. This means the majority of our population falls in the bracket of lower-income groups.
Mayura Shanbaug, The Times of India.