Haryana Cabinet Greenlights Revised EDC Indexation for State's Potential Zones

The Haryana Cabinet has approved a revised Indexation mechanism for External Development Charges (EDC) across various zones in the state, increasing rates by 10% annually starting January 2025. A consultant will be engaged to decide future base EDC rates, enhancing urban area regulations.

In a move set to impact multiple zones, the Haryana Cabinet, under Chief Minister Nayab Singh Saini, sanctioned a new Indexation strategy to assess External Development Charges (EDC) across the state. Convened in Chandigarh, the Cabinet meeting addressed the outdated EDC rates, stagnant since 2015, opting for a yearly 10% increment in charges.

With the previous policy allowing EDC rates to increase annually by 10% up to 2015, the new approval seeks to restore this growth pattern post a one-time 20% hike starting January 2025. Further, a consultant's involvement has been sanctioned to determine future base EDC rates, a crucial step to fortify urban area regulations and development.

The Indexation Policy's alignment with recommendations from key ministers, alongside unaddressed evaluations by IIT Delhi and IIT Roorkee, underscores the urgency of reform. With Section 9A of the Haryana Development and Regulation of Urban Area Act, 1975, being invoked, these reforms are set to bolster urban planning and development structures.

(With inputs from agencies.)