Real estate developers’ body urges Haryana government to reduce external development charges

DDA Housing Scheme

Real estate developers’ body Confederation of Real Estate Developers Association of India (CREDAI)-Haryana chapter has urged the state government to reduce the External Development Charges (EDC) in urban areas.

EDC is paid to the government for development of external infrastructure including roads, sewerage, drainage, green belts, open areas and related infrastructure.

“EDC in the state of Haryana is very high and a representation for the rationalisation of the same should be made. The EDC should be payable in interest-free instalments as the works required to be undertaken for EDC are not complete on the date of the license,” newly elected president of CREDAI-Haryana Kushagr Ansal said.

Speaking on the EDC relief policy, Ansal said that the current extension of EDC relief policy is not a favourable policy anymore.

The builder association of Haryana chapter insisted that EDC should be payable in progress related development-linked instalment. This is an important issue and the same is to be taken up along with EDC rationalisation and interest waiver on instalments. The EDC breakup/component and duplicity of components were also discussed and it was mentioned that besides duplicity in the components of EDC, there is a component of admin expense equivalent to 49 percent.

The cross-linking is also an issue faced by developers in Gurugram. Currently, the government has cross-linked the EDC dues of a particular developer and not issuing any new license to a developer if there are EDC dues against existing licenses. CREDAI Haryana believes that cross-linking of EDC dues is detrimental to the working in the state, the release said.

The newly elected executive council members also expressed concern over 24 meters road issue. “Currently, no 24-meter roads are being developed in the new sectors leading to lack of access and non- completion of infrastructure. We have sent a proposal to HUDA stating that they could issue permission to realign the roads and where possible, steps should be taken up by the concerned department so that these roads can be made inside the sector to provide the much-needed access and enable the laying of infrastructure,” said Pankaj Goel, vice president, Credai Haryana.

The need for extension in completion time for schools and community facilities was also discussed in the meeting. Currently, the time for completion of the community facilities in all licenses is February 2, 2018 or six years from the date of license whichever is later, irrespective of the development of infrastructure, level of habitation etc, the release said.