Telangana government despite claiming itself as the second most wealthy state in the country only after Gujarat, is facing financial troubles as there is a huge gap between the income and expenditures of the state. Earlier this month we have seen the government stopping the payment of bills to clear the financial mess.
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The officials have been recommending the Chief Minister to increase the value of the lands in the state to make quick bucks exploiting the real boom in the state. Hyderabad Real Estate had recovered post the bifurcation slow down while the real boom has occurred even in several interiors of Telangana due to the creation of new districts.
However the government is in no mood to increase the land values now. The government had to acquire lot of land parcels in the state for several ambitious projects like SRDP in Hyderabad and other irrigation projects in the interiors of Telangana. The government have to pay four times the land value as compensation, according to 2013 Land Acquisition Act.
With the existing rates, the land acquisition costs for SRDP Project in Hyderabad, are more than the actual projects cost in some areas like Jubilee Hills, Banjara Hills etc. Increasing the land values may backfire at the moment and so the government is sitting on the proposal even though it brings some quick bucks to the government.
