Decision on Land Pooling in Jan 2015
M. V. Rajeshwara Rao, CEO, Credai Hyderabad
Interviewer : Sandeep Pattnaik
M. V. Rajeshwara Rao, CEO, Credai Hyderabad

CREDAI Hyderabad is organizing a Workshop in the first week of January 2015 to find Land Pooling Solutions, says M. V. Rajeshwara Rao, CEO, CREDAI HYD. The authorities will work out how much of developed land will be given to landowner as percentage of the land acquired, meant for developing Hyderabad into a slum-free International City. Besides, the State Government is committed for an outlay of Rs. 55,000 crores to make the city as an Industrial hub that is proposed to be developed as a smart city. Excerpts of the Interview with Sandeep Pattnaik of produced below.


1.   Land pooling has proved to be a big hurdle in formation of new capital of AP post bifurcation. Basically, taking farmers on board to part with their agricultural land seems unpredictable. Then how the Govt. is moving in that direction and any inputs from Credai-Hyderabad on this front?

A. The A P legislature has passed the AP CRDA (Capital Region Development Authority) Bill 19.12.2014. The feature that seems novel is that the Bill did not specify how much of developed land will be given to landowner as percentage of the land acquired. It however specified that, 30 percent of land is used for development of roads, 10% for development of parks and play grounds, 5% for social housing and 5% for social amenities.

The CRD Authority will determine and decide how much of the developed land would be given to the landowner. The authority determines based on the type of the land acquired, its present earning capacity and future value appreciation, etc. For high yielding and for high future appreciation lands the Authority may decide to give more land than in case where the land is of low yielding and low appreciation potential land. Thus there is flexibility to vary the compensation. Further, to compensate for the loss of earning, the government will pay an annuity amount for a certain period. Besides, the government makes use of the farmers’ tractors and other implements. The government within 9 months of acquisition will provide a Land Ownership Certificate.

CREDAI Hyderabad is organizing a Workshop in the first week of January 2015 to find Land Pooling Solutions and Development of Trunk Infrastructure around Nehru Outer Ring Road (ORR). The ORR is 160 km, 8-lane expressway that encircles Hyderabad and connects to several nodes and business centres and the core city.


2.   Hyderabad proposed to be developed as a ‘Smart City’ replicating the Dubai concept. Throw some light on that. Besides, how far the new Industrial Policy being unveiled recently will be helpful in that context?

A.  To develop Hyderabad into a slum-free International City, many initiatives have been taken by the government. Several locations around Hyderabad have been identified of extent running from 2000 acres to some 8,000 acres to locate pharmaceutical city, education city, aerospace city etc. The Hussainsagar Lake, connecting the twin cities, Hyderabad and Secunderabad, is planned to be cleaned and fresh water pumped into the lake. The CM has announced that he would plan to build high-rise buildings of 60 to 100 storied to attract international businesses. City roads will be developed to international standards. A sum of Rs. 20,000 crores is expected to be invested in this project.

As mentioned earlier, the Nehru Outer Ring Road, or the Outer Ring Road (ORR), a Rs.6,696 crore, 160-kilometer long, 8-lane ring-road expressway, encircling Hyderabad; and the Hyderabad Metro Rail, a Rs. 17,000 crore, 72-kilometer-long elevated metro rail, considered to be the world’s largest metro rail PPP project, are two major infrastructural projects, coming up fast in Hyderabad.

These projects have great potential to transform Hyderabad into a major iconic international city.

The Industrial Policy, unveiled recently has been appreciated by a suit of large industrialists as being one of the best in the country. The uniqueness of this policy is that if in 30 days an industrial approval is not given for an MSME, the promoter of the industrial unit is deemed to have received the approval based on self-certification. For Mega Projects, the time limit is 15 days. Recognizing that land, water power and transport connectivity are the essentials for establishing industries, the government is focusing on identifying government lands for setting up industrial cities. The government in the last one month identified lands for pharma city, education city, textile city, aerospace city and about 8,000 acres to set up 7,600 MW power plants, with an outlay of Rs. 55,000 crores, near Krishna River in Nalgonda district, which is known as a major south India’s cement industry hub.  


3. With the Union Govt’s thrust on ‘Affordable housing’, how the state government is panning out on that? What are the recommendations of Credai-Hyderabad?

A. The CM has already initiated executing construction of some two-room tenements. A 369 housing colony is being redeveloped and the response of the residents is extraordinarily high. About 360 residents responded for redevelopment by moving out of their housing units. This is giving great hope to the administrators that CM’s vision of building EWS housing will be realized.

CREDAI Hyderabad has proposed affordable housing going more vertical to more than 5 floors as well as to initiate slum redevelopment plan. The success of this scheme depends on identifying a government land closer to the existing slum. In the government land, a model affordable group housing will be developed and the nearby slum residents will be moved. Being closer to the existing residential slum, they will be easily convinced to move. Once this slum is cleared, it will be redeveloped and the chain will progress and ensure that more and more slums get redeveloped.

4.  With FDI set to pour in to revive the beleaguered real estate sector in the Country, how much inflow Hyderabad as a mega city expected to draw in near future?

A. The Hyderabad real estate market is going through certain readjustment. Firstly, the developers and investors are watching how the Capital region development will evolve. Many have rushed in to make investments on lands in the AP Capital Region and are waiting to see what are the government’s new development plans and moves and investments.

The other aspect is people are waiting to see how the two new states’ industrial policies materialize into attracting investments into industry, IT and other sectors. As they rev up, the real estate will show the signs of pick up. We expect one year will be the waiting period.  

5. Which of the thrust areas Credai-Hyderabad considers to boost real estate, those have been laid before the Central Government by the apex body in the recently concluded Credai National Conclave 2014?

A. In an uncertain market, what is required is to give the sector a stimulus. Stimulus comes from various factors. But in a low sentiment phase, we are focusing on easing of doing business aspects. These do not require funds but the change of mind-set from the administration. There are many areas from simplification of approval procedures to rationalizing the fee and duty structure. So, we are concentrating on issues of simplification, fast approval mechanism, development of growth corridors with the trunk infrastructure, sources of funding required for development of trunk infrastructure, branding and rating of cost of doing business in Hyderabad, etc.  

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