Hyderabad: Government plan to make ULBs self-reliant falls flat

Hyderabad: Telangana government's maiden plan to promote municipalities as "financially self- reliant" will remain unfulfilled this year since the response to the layout regularisation scheme (LRS), which was extended several times, has been lukewarm as land owners are not ready to get their layouts regularised in the Urban Local Bodies (ULBs).

The Municipal Administration Department had announced this scheme and extended it many times hoping mop up increase the revenues. The LRS scheme was introduced in nearly 90 municipalities which are facing financial challenges to take up a slew of developmental programmes like road development works, drainage and creation of other civic amenities including dump yards and local waste management treatment plants.

The officials of the Municipal Administration said that around 4000 illegal layouts were unearthed in the random survey conducted by the vigilance teams. In these layouts, more than three lakh plots were sold out and the buyers will have to get the plots regularised. The government has estimated to mop up nearly Rs 200 crore revenue through the LRS so that it can utilise these funds for local urban development programmes this year.

The major hurdle before the government is convincing the plot owners and get their properties regularised under the LRS. A majority of the owners are not willing to go for regularisation as their land prices are not increasing at the expected levels due to the lockdown during the past three months. The plot owners also fear that they would have to pay vacant land tax every year once the properties are regularised under the LRS.

Unless the land prices go up in the municipalities, the LRS would not get good response from the locals. A senior official said that a group of plot owners requested the local authorities to waive off vacant land tax. But the government did not agree. But the hopes of some concessions are being expressed as the government has extended the last date for the LRS till September. Even official circles feel that the government may decide on making some announcements soon.