HMDA may lose its revenue as ULBs merge with GHMC

The HMDA is bracing for a potential revenue loss following the proposed merger of 27 Urban Local Bodies into the Greater Hyderabad Municipal Corporation (GHMC). The merger will transfer sanctioning powers for multi-storeyed buildings within ORR limits to GHMC, reducing HMDA’s income from permit fees.

Hyderabad: The Hyderabad Metropolitan Development Authority (HMDA) may face a considerable revenue loss after the proposed merger of 27 Urban Local Bodies (ULBs) into the Greater Hyderabad Municipal Corporation (GHMC).

According to the HMDA officials, the merger will transfer responsibility for approving multi-storeyed building (MSB) plans within Outer Ring Road (ORR) limits to the GHMC, curbing HMDA’s income from permit fees.

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In the current year, HMDA received 3,677 new applications for MSB permissions, layouts with open plots, layouts with housing and building permissions. It approved 2,887 applications and collected Rs 1,225 crore.

HMDA contributed its highest revenue share to the State government through building permissions and layout sanctions.

K. Yeswanth Rao, HMDA chief planning officer, Ghatkesar, said that the Ghatkesar ULB used to sanction building plans within stipulated norms and forward applications seeking greater height to HMDA, which then sanctioned them and collected permit fees. The merger will shift the implementation of building by-laws to GHMC. However, Rao ruled out a severe fund crunch at HMDA but added, “some impact will be on the revenue sources.”

Another HMDA planning officer said, “within ORR limits, the GHMC will implement its norms in building sanctions and beyond ORR, the HMDA has to approve the building’s plans.”

A senior HMDA official said the approval rate for building applications stood at 38 per cent in 2024, with only 1,216 out of 3,209 new applications approved. In 2025, the rate rose to 79 per cent.

In the first nine months of 2025, HMDA sanctioned 77 MSB applications, covering a built-up area of 78.71 lakh square metres and realised a record Rs 514 crore in revenue.

HMDA granted permissions to several large-scale MSB ventures in Kokapet, Bandlaguda and other areas within its jurisdiction. “Now, the sanctioning may likely slow-down after merging the ULBs into the GHMC.”

Officials said clarity on building plan sanctioning would emerge once the merger process is over. It may take at least a month for GHMC and HMDA officials to finalise the guidelines, added the official.