Four Corporations Within ORR Likely

Hyderabad:The state government is likely to divide the region within the Outer Ring Road (ORR) into four corporations on the lines of the four urban local bodies (ULBs) in New Delhi. According to the initial plan, the GHMC, which is spread over 650 square kilometres, will not be divided.

The vision of Chief Minister A. Revanth Reddy of formulating Hyderabad Greater City Corporation (HGCC) by merging seven adjoining municipal corporations and 30 municipalities with the GHMC that covers the area within ORR will be divided into four parts. The proposal is at an early stage, with preliminary meetings yet to be held.

“The four new corporations will be based geographically – north, south, east and west Hyderabad,” said a source. Each urban local body will have its own mayor and commissioner, as minister Komatireddy Venkat Reddy said on Thursday.

Verification revealed that, while Delhi was earlier governed by only two ULBs — NDMC and Municipal Corporation of Delhi (MCD) — it was divided into four parts not due to the city's expansion but to increase the number of wards for political gains.

However, the government has proposed four corporations to decentralise administration and enhance municipal services.

The decentralised model in Delhi with four municipal corporations faced several issues as most of the revenue was generated from south Delhi Municipal Corporation and NDMC.

In Hyderabad, the highest revenue from property tax is generated from the GHMC Serilingampally circle followed by Jubilee Hills and Khairatabad. The GHMC is divided into 30 circles and the lowest tax collection is from Falaknuma, Chandrayangutta and Santoshnagar circles.

With property tax and building permissions being the only two main sources of income for any urban local body, the proposal to divide the area geographically within ORR could have an adverse effect on the Old City and benefit the western part of the city.

Deccan Chronicle received mixed responses from people on the issue. While some backed decentralisation, others opposed the idea citing utilisation of revenue.

"I have been vocal about decentralisation for a long time," said Harish Daga, an activist from the city.

A hotel owner at Barkas located in Chandrayangutta circle said that decentralisation should enhance municipal services and not marginalise people based on economic standards.

"Due to land availability and the vested interests of political parties, especially the BRS, one saw many high rise buildings come up in the city's western side. In the Old City due to historical and other reasons high rise buildings are not possible. It is obvious that property tax and building permit fee will be less and restrictions should not be applicable for revenue sharing," said a resident.

Another resident from IS Sadan in the Old City opined "The government should be pro-poor. If the corporations do not share revenue, the purpose of democracy will be defeated," he said.