Date:12/02/2008 URL: http://www.thehindu.com/2008/02/12/stories/2008021259700500.htm

Andhra Pradesh - Hyderabad

YSR defends regularisation of constructions on encroached lands

HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy has justified the government’s decision to regularise constructions on lands encroached before December 21, 2003 as it was not possible to demolish them all.

The government had decided to evolve a mechanism to regularise properties on encroached lands and it would also help mobilising certain income to the exchequer.

Moreover, the regularisation process was not new and similar steps were adopted by former Chief Minister N.T. Rama Rao earlier.

Developmental works

In an interview to a private television channel, Dr. Reddy said the government had initiated infrastructure development works on a massive scale in the State capital that would need Rs. 18,000 crore. Given its commitment not to burden people with taxes, the government was raising resources by auctioning lands that were lying idle.

Limitations

Moreover, there were limitations on securing loans for developmental works in that the loan should not exceed the prescribed limit of 3 per cent of the GSDP. The State would stand to lose Central grant amounting to Rs. 3,000 crore if the limit was crossed.

Admitting that the proceeds raised through auction of lands in cities like Hyderabad and Visakhapatnam were higher when compared with other areas,the Chief Minister said the government was utilising the proceeds for the development of interior areas in different parts of Andhra Pradesh.