Though the Hyderabad Metropolitan Development Authority (HMDA) claims Outer Ring Road (ORR) Phase II-A will be completed by May, 2010, the ORR project officials are struggling to pay Rs 180 crore towards land compensation to farmers in villages abutting both Phase II-A and Phase II-B areas. About 100 acres of land was acquired for ORR phase II-A between Narsingi and Patancheru and Pedda Amberpet and Shamshabad in villages like Tukkuguda, Poppalguda, Koheda and Narsingi last year. But the land owners are yet to get compensation from the government. For instance, 18 acres of land was acquired from 20 farmers last year. However, they are awaiting their payout still. "Farmers of Tukkuguda village first did not give consent to HMDA for the land acquisition and general award was passed by the officials. Later, they gave consent since they got more money under government package. The balance amount has to be paid to the farmers," ORR special deputy collector K Satyanarayana said.

Similarly in Koheda, Narsingi and Poppalguda villages, the HMDA has to pay  compensation to farmers. At places like Poppalguda, some farmers and owners approached court. Even if the court gives verdict in favour of HMDA, the ORR project is not in a position to make payments. "Of 100 acres of the land acquisition, procedures were completed and award was passed for nearly 80 acres. Compensation has to be paid and possession of land has to be taken," a senior ORR official told TOI. Similarly, on the Patancheru-Pedda Amberpet stretch of Phase II-B, land acquisition has to be completed between Shamirpet and Ghatkesar.

The HMDA used to provide funds for the ORR project by way of auctioning government land. But it has stopped transferring funds to ORR since November 2008 as it has been facing problems in mobilising funds due to slowdown in the real estate sector. Of 6,500 acres of land required for ORR, nearly 6,000 acres has already been acquired. So far, about Rs 600 crore compensation has been paid since beginning of the project. Another Rs 300 crore would be required to complete the acquisition process. The state government received Rs 112 crore from the Japan International Cooperation Agency (JICA) as part of first instalment of Rs 3,000 crore loan for Phase II-B of ORR from Patancheru to Pedda Amberpet. When the officials requested the finance department to release the amount, it has not released the amount yet.

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