DTCP to fix formula to calculate external development charge

The department of town and country planning (DTCP) has decided to fix a formula for the uniform calculation of external development charges (EDC) that are sought from builders for the development of master facilities. A meeting in this regard was held in the city on Wednesday between DTCP officials and experts from IIT Delhi, IIT Rourkee and the National Institute of Financial Management. The meeting was chaired by DTCP director KM Pandurang, who said that suggestions were sought from experts to determine the best possible way to calculate the EDC. “We want to fix a formula on the basis of which the EDC are calculated uniformly,” Pandurang said.

EDC are revised every three years. The calculation till now was based on market rates in an area, officials said. Since there was no fixed formula to calculate the EDC, several builders questioned the base rate of land taken by the department, which led to disputes and delay in payment of charges, officials said. In the wake of increase in price of land as well higher cost of development, the department has now decided to come up with a fixed formula based on a number of factors to ensure the EDC calculation is carried out scientifically, officials said.

Another reason is that there are hundreds of acres of land in Sohna, Gwal Pahari, Farrukhnagar and in developing sectors in Gurugram, for which developers have applied for licenses. Officials said that the new licenses are likely to be issued only after the formula is finalised.

EDC are collected from developers to carry out work like building roads, setting up electrical infrastructure, laying down water and sewerage lines, constructing drains and related infrastructure. The charges are calculated by the department based on the area being developed by a particular builder.

As per the DTCP officials, the task of fixing the EDC formula would be given to one of the agencies that participated in the discussion. A decision in this regard would be taken in the next two or three weeks, they added.

RS Bhath, district town planner, Gurugram, said that a meeting was also held with the Dakshin Haryana Bijli Vitran Nigam senior officials on Wednesday to discuss the issue of inadequate power infrastructure in private colonies. “This matter was discussed in detail,” he said.