Gurugram: DTCP approves ₹1,000 crore EDC payment for infra

The Department of Town and Country Planning (DTCP) has sanctioned the disbursement of ₹1,000 crore from External Development Charges (EDC) to metropolitan authorities across Haryana and Haryana Shahari Vikas Pradhikaran (HSVP) for infrastructure projects. 

According to the sanction issued by the additional chief Secretary, Town and Country Planning Department, ₹333 crore of this amount will be allocated to the Gurugram Metropolitan Development Authority (GMDA) for 2025-26, making it the highest recipient among metropolitan bodies.

Additionally, Haryana Shahari Vikas Pradhikaran (HSVP) will get the largest share of the fund at ₹576 crore, with Sonipat Metropolitan Development Authority receiving ₹50 crore. The Faridabad Metropolitan Development Authority will get ₹30 crore from the fund, while the Panchkula Metropolitan Development Authority has been allocated ₹10 crore.

The payment will be made in February 2025, with authorities required to submit utilisation certificates and details of development works to be undertaken using these funds, officials aware of the development said. 

A senior GMDA official, when asked about the matter said that External Development Charge (EDC) charges, a fee paid by developers to local body, along with stamp duty and other levies are an important source of income for the GMDA to execute its infrastructure and development works in the city. “The money is collected from real estate developers by DTCP, which grants licenses for the development of residential and commercial projects. The money is paid to the metropolitan bodies and HSVP for the development of infrastructure in urban estates of Haryana,” he added.

According to the GMDA budgetary data, the authority received EDC of ₹187 crore in 2019, ₹50 crore in 2020, ₹150 crore in 2021, ₹250 crore in 2022, ₹100 crore in 2023, and ₹100 crore in 2024. Further data reveals that GMDA received ₹477 crore as stamp duty charges in 2024, ₹275.49 crore in 2023, ₹557.18. crore in 2022, and ₹246.83 crore in 2021, officials said.

Apart from these, GMDA also generates revenue through local sources, permissions, and levies, officials said. 

The EDC is a levy collected from real estate developers by DTCP when granting licenses for residential and commercial projects. The funds are utilised by urban bodies like GMDA to develop public infrastructure, including roads, water supply, power, sewage, and drainage systems. The quantum of EDC is decided by authorities like GMDA or DTCP and is often passed on to homebuyers by developers.