Revocation of GO 111 will boost realty: Experts
Hyderabad: A recent announcement by the Telangana Chief Minister K Chandrashekhar Rao on GO 111 has brought to the fore mixed responses from various sections ranging from realtors to environmentalists. However, the real estate sector, in particular, seems to be optimistic about the development of the sector in those areas that come under GO 111. […]
Published Date - 18 March 2022, 05:26 PM
Hyderabad: A recent announcement by the Telangana Chief Minister K Chandrashekhar Rao on GO 111 has brought to the fore mixed responses from various sections ranging from realtors to environmentalists. However, the real estate sector, in particular, seems to be optimistic about the development of the sector in those areas that come under GO 111. As per reports, the GO 111 was issued in 1996 during the erstwhile state of Andhra Pradesh to prevent undue industrialization and heavy construction activities in 83-plus villages that are in the surrounding areas of Osman Sagar and Himayat Sagar.
Speaking about revoking the GO 111 in the Assembly recently, the Chief Minister said that it has become redundant and it was issued to protect the two lakes as they were the main source of drinking water to the Greater Hyderabad region. Now, the region, according to Rao, is not completely dependent on the two sources and has overcome the water shortage issue.
The GO 111 affects 83-plus villages and covers over 1.32 lakh acres and if lifted, according to real estate experts, will lead to a boom in the construction activities in that region and contribute to the economic growth of the State.
“If and when the GO 111 is revoked it will lead to an increase in land availability and the prices of land that fall under the GO are surely set to rise. The surrounding land which comes under non-GO 111 areas have been witnessing steady growth in prices and this will also get stabilized whenever the GO is revoked. We are anticipating a fall in land prices of non-GO lands which will allow more supply of properties in the areas that are closer to developing areas of the Western corridor,” C Shekar Reddy, past national president, Credai told Telangana Today.
Reddy also emphasised that there will be an increase in the supply of properties while the demand for such properties may take a while, whenever the GO gets revoked. Currently, the lands that come under the GO are being used for agriculture and allied services and if it is revoked then it will be beneficial for those landowners, Reddy added.
“People who have bought agricultural lands that fall under GO 111 are going to benefit the most post the abrogation of the GO. The land prices are surely going to shoot up exorbitantly and for developers who are keen on these lands, it will be a cakewalk to sell them once the GO is revoked. All the lands will become part of the central properties in the capital and it will be beneficial for customers who are looking for large open space properties. Developers will also focus more on constructing high rises when compared with villas,” says Kalisetti Naidu, CEO, Yards & Feet Property Consultants.
However, realty experts also argue that even if the GO is revoked, the government will have to chalk out a plan that will help in maintaining a balance between development and ecological protection. Construction will have to be restricted in upstream areas and the government may have to look at phased growth of real estate if the balance has to be maintained. The government must also provide developers with special guidelines on what kind of construction is allowed in those zones to not disrupt the river flow.
What is GO 111?
The united State of Andhra Pradesh decided to implement a government order 111 in 1996 that will follow the principle of protecting the reservoirs that are the main sources of drinking water at that time in Hyderabad. At that time, even though the two lakes were declared protected zones, there was rapid urbanization happening, and taking cognizance of this, the then government decided to declare a 10 km peripheral area within the catchment area of the two lakes as a no-development zone.
The order prohibits activities like industries, major hotels, residential colonies, and other establishments that might harm the environment. However, activities related to agriculture and allied services are allowed. Areas like Shamshabad, Shabad, Chevella, Shankarpally, Rajendranagar, and Moinabad mandals are covered under the 83-plus villages under GO 111.
Chief Minister K Chandrashekhar Rao claims that now the capital city has an abundant water supply from projects like Sunkishala Intake Project and Mallana Sagar and Hyderabad may not face any water woes for the next 100 years and therefore the GO needs to be revoked.
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