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Haryana reframes its EDC policy to curb migration to large cities

Postby angsuman » Tue Apr 16, 2013 11:25 am

To overcome the recession in the property market, the Haryana government has decided to give relief to the housing projects in the low potential towns especially those which lack infrastructure services to be provided on account of External Development Charges (EDC).
"We want to accelerate the development of small and medium towns, which can serve as generators of economic momentum while at the same time strive to reduce rate of migration to existing large cities. Hence, this policy," said a senior officer.

The government, with an aim to encourage the private sector to participate in the planned urbanisation of low potential zone towns, has envisaged the policy, which besides being applicable to the projects to be licenced in future would also cover the existing licenced projects. The policy will come as a major relief for the existing projects, as it envisaged that rates prescribed in the agreement shall remain applicable till the actual provisioning of services by the Haryana Urban Development Authority (HUDA). Even the EDC rates for future licences would be finalised by HUDA on average rates worked out by the department as applicable in the new policy.

Any coloniser wanting to avail the benefit of the policy will have to deposit the 25 per cent of the principle amount of EDC and a bank guarantee equivalent to 50 per cent of balance principal amount of EDC. The colonisers will also specify the quantum of the EDC instalment to be recovered from it's allottees with commitment to deposit such amount as collected in the past or in the future immediately. This would ensure that the approval of zoning plan, service plans, building plan and renewal of licences are considered without insisting for any further payment of EDC. No such plans were earlier cleared before complete payment of EDC.

However, the balance amount of EDC will become due at the end of a period of two years from the date of announcement of the award for acquisition of land reserved for road, green belt along sector boundary containing the colony for laying trunk services including water supply, sewerage and roads by HUDA. No interest will be charged for payment till the due date. The HUDA will work out fresh EDC rates for such sectors on due date, to be applicable for projects where valid application for Occupation Certificate or Part Occupation Certificate has not been received till the due date. The balance EDC will be charged in 10 six-monthly instalments.

However, for delayed payment the government has fixed an interest rate of 12 per cent on the actual amount. In a special favour to the colonisers, the government has decided that after obtaining no objection certificate from the HUDA, the coloniser will be free to procure services from other agencies such as municipal bodies to claim exemption of proportionate amount from payment of EDC.
Angsuman Roy
SRS Pearl Independent Floor
Sector-87, Faridabad
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