Cabinet okays revision of indexation mechanism for external development charges

The Haryana Cabinet, which met under the chairmanship of Chief Minister Nayab Singh Saini here today, has approved the revision of the indexation mechanism for the calculation of external development charges (EDC) of various potential zones in the state.

The indexation policy was based on EDC rates for 2015 and these had not been increased for the past eight years. Prior to the indexation policy, the EDC rates were increased by 10 per cent every year. Accordingly, the Cabinet has approved the proposal to increase EDC rates by 10 per cent every year, hereafter.

The Cabinet also approved the engagement of a consultant to decide the base EDC rates for the determination of indexation rates in the future and till such time the base EDC rates get determined.

The Cabinet approved a one-time increase of 20 per cent from January 1, 2025, and for later years an increase of 10 per cent every year was approved.

The approval will pave the way for issuing policy instructions under Section 9A of the Haryana Development and Regulation of Urban Area Act, 1975, as well as for undertaking amendments in the Haryana Development and Regulation of Urban Areas Rules, 1976.

It is worth mentioning that the rates of EDC were fixed under the indexation mechanism on the recommendations of the Cabinet sub-committee consisting of the Finance Minister, Public Works (B&R) Minister, Social Justice and Empowerment Minister and Health and Medical Education Minister.

In 2018, the government requested IIT, Delhi, to undertake the work of determining EDC rates of Gurugram & Rohtak circle and IIT, Roorkee, for Faridabad, Panchkula and Hisar circle. However, both the institutes expressed their inability to undertake the work of determination of EDC rates due to which the same indexation policy as well as EDC rates continued till date.