Fund crunch hits HMDA works

HYDERABAD: The Hyderabad Metropolitan Development Authority (HMDA) seems to be on its way to become a vestigial body if one takes into account the wall of fund paucity that obstructs its development initiatives.For many years, many projects taken up by the HMDA have come to a standstill. Earlier, HMDA used to fund its developmental works from the revenue it got through issuing building permissions. But since the Greater Hyderabad Municipal Corporation (GHMC) was formed, the revenue sources dried up.Faced with a severe financial crisis, HMDA is at the mercy of the state government and is eagerly looking for funds in the form of Metropolitan Development Funds (MDF). HMDA officials said that after the creation of HMDA in 2008, government had to create MDF with a seed capital of Rs 200 crore with a revolving fund of Rs 100 crore.Similarly GHMC and municipalities falling under the HMDA limits had to contribute 10 per cent of the total sum of money credited during the preceding year to the MDF.But the state government failed to sanction any funds to the HMDA.The HMDA wrote letters to GHMC to contribute 10 per cent of the revenue it gets in the form of property tax to the HMDA but so far nothing has happened.