ORR Project Faces Cash Crunch

Times of India

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 installment 
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.