The development of townships will be taken up only by private infrastructure companies and foreign firms across the state, especially around the twin cities. The municipal administration and urban development is working on a policy for townships named ‘The Andhra Pradesh Rules for Promotion and Development of Integrated Townships in Private Sector, 2008'. The townships will be promoted on the lines of special economic zones with the private initiatives and foreign investments. The Hyderabad Urban Development Authority (Huda) has already proposed 22 satellite townships along the Outer Ring Road (ORR). Of the 22, two townships at Tellapur and Sri Nagar along the ORR are being taken up by private developers. Initially, Huda proposed to develop satellite townships along the Outer Ring Road. But in the wake of crititicism over land acquisition by Huda, the municipal administration has decided to promote townships under the public private partnership (PPP) only.

The townships policy will usher in a systematic development rather than haphazard growth around the cities, an official said. The Centre announced its policy on townships in 2004, allowing 100 per cent foreign direct investment (FDI) in the real estate sector. "We are studying the townships policies in the states of Uttar Pradesh, Gujarat and Maharastra. A workshop will be conducted to take the opinions of experts and the states which are implementing the policy," the official said. The township rules will be applicable to all urban development authorities, municipal corporations, municipalities and their surrounding gram panchayats areas. The existing rules, regulations of local authorities and urban development authorities are not applicable in the townships.

The townships will be broadly divided into three categories. One category will be minimum 100 acres which will be allowed in Huda area, Visakhapatnam and other urban development authorities. In the second category the minimum area will be 75 acres. These will come up in Tirupathi, Warangal, special development authority areas. Townships with minimum 50 acres will be allowed in municipalities and surrounding areas. The township should be integration of residential, commercial, educational, amenity spaces, health facilities, places for parks, playgrounds and public utilities. "Our plan is to encourage townships the combination of which will be workplace, residential and entertainment. The area could be IT or bio-technology or anything," a senior official of the municipal administration said.

The developer has to provide infrastructure facilities like roads, water supply, drainage, garbage disposal, power, open spaces and other conditions which are mandatory as per the environmental rules. The draft will also list exemptions to be given by the government like waiver of 50 per cent of conversion charges, non-agriculture charges, development charges reduction and property tax. The municipal administration and urban development department made similar attempts to bring about a special policy for townships in 2006. It took the opinions from the then Municipal Corporation of Hyderabad, Huda, director of town and country planning (DTCP) and other town planning experts but could not go ahead as the officials were dealing with preparation of new building rules 2006.

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