The Haryana Cabinet, which met under the chairmanship of Chief Minister Sh. Nayab Singh Saini here today, has approved revision of Indexation mechanism for calculation of External Development Charges (EDC) of various potential zones in the state.
The Indexation Policy was based on EDC rates for the year 2015 and these had not been increased for last 8 years till date. 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 engagement of a consultant to decide the base EDC rates for determination of indexation rates in future and till such time the base EDC rates get determined. Cabinet approved one time increase of 20% from January 01, 2025 and for later years an increase of 10% every year w.e.f 01st January of every year was approved.
The approval will pave the way for issuing of 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 Indexation Mechanism on the recommendations of Cabinet Sub-Committee consisting of Finance Minister, Public Works (B&R) Minister, Social Justice and Empowerment Minister and Health and Medical Education Minister. In 2018, the government had requested IIT Delhi to undertake the work of determination of EDC rates of Gurugram & Rohtak Circle and IIT Roorkee for Faridabad, Panchkula & 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.