The EDC proposal will be kept in the cabinet meeting to be ahead. (File)
For the first time in Haryana, there will be external development charge (EDC) in agricultural areas around cities. This charge will be charged when there will be a commercial work in these areas, such as the construction of a petrol pump, school or hospital. Till now this charge is only on the land of cities
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The Urban Local Bodies Department (ULB) has sent this proposal to the CM for approval. This proposal will also be kept in the meeting for the approval of the upcoming cabinet. As soon as it is implemented, charge will be charged in every commercial activity in the agricultural sector under the notified area under the Town Country Planning (TCP).
At present, EDC is recovered only on the land coming in the area of ​​municipal corporations, councils and municipality in the state. In the agriculture sector, only Change of Land Use (CLU) was charged for commercial activity. According to the new proposal, now EDC will have to be given along with Clu.
What is EDC and how to calculate In Haryana, builders still take external development charge (EDC) from customers for external development. Builders add this fee per square foot. They first set a rate for the entire terrain, then charge charges from customers using factor such as the floor area ratio (FAR).
For example, if the size of your plot is 1,000 square feet and FAR 3, you can build up to 3,000 square feet. Builders multiply this 3,000 square feet per sq ft by the EDC rate, and then this money is taken from customers.
There will be a 10% increase every year There is no fixed rate of EDC in the state. It varies depending on the type and location of a project. In December 2024, the Haryana government approved a 20% increase in EDC rates for potential real estate sectors and then a 10% increase has been fixed every year. The increase in EDC will see a big impact on real estate.
Many developers have expressed concern about this decision. He says that the promise that was promised to improve the infrastructure has not been fulfilled yet, while a lot of money has been collected through EDC.
President of NREDC said- Property rates will increase National Real Estate Development Council (NREDC) President Praveen Jain says that the annual growth may put further pressure on the real estate market. Property prices in Gurugram are already quite high, and in 2024, circle rates in all major areas also increased. After the increase in EDC in 2015-16, the developers almost stopped taking licenses. Now the new increase has taken place, it will be completely impossible to get a license for developers.