Ghaziabad Development Authority Implements New Cess Rates for Infrastructure Projects
The Ghaziabad Development Authority (GDA) has announced a significant increase in cess rates for key infrastructure amenities, including the metro, Hindon Elevated Road, and Ganga water supply, effective from the start of the new financial year. This move follows a recent hike in development fees and is set to affect construction costs across the region.
Revised Cess Rates for Metro and Elevated Road
According to an official from GDA, the metro cess has been raised from Rs 367 per square meter to Rs 435 per square meter. Similarly, the cess for the Hindon Elevated Road has seen a substantial increase from Rs 692 per square meter to Rs 864 per square meter. These adjustments mark a notable escalation in financial obligations for developers undertaking projects in Ghaziabad.
Historical Context and Legal Developments
GDA has been levying cesses for metro and elevated road projects since 2014. However, in 2021, the Allahabad High Court intervened, hearing a case challenging the legitimacy of these charges. The court directed GDA to suspend the collection of separate cesses for metro and elevated road infrastructure, putting the practice on hold temporarily.
In a pivotal turn of events, the state government issued a legislative order in August 2023, altering the policy framework to permit the imposition of such cesses. A gazette notification was released the same month, authorizing GDA to levy special amenity fees for designated projects in development areas, as determined by the state government.
"Based on this notification, the cesses for metro, Hindon Elevated Road, and Namo Bharat were integrated into the Uttar Pradesh Urban Planning and Development Act, 1973," explained the GDA official. "This amendment received cabinet approval and was subsequently ratified by the governor's notification. Since then, we have resumed cess collection under these categories, with rates now increased for the financial year 2025-26."
Additional Increases in Water-Related Fees
Beyond the metro and road cesses, GDA has also hiked the Ganga water cess from Rs 241 per square meter to Rs 289 per square meter. Additionally, the water fee, introduced in 2022, has been raised to Rs 60.60 per square meter of carpet area, up from Rs 50 per square meter. These changes further contribute to the overall cost burden on construction activities in the area.
Payment Requirements and Cost Implications
All cesses under these heads must be paid at the time of map sanctioning for construction projects. For instance, map approval for a land parcel measuring 200 square meters is estimated to cost between Rs 25,000 and Rs 30,000. For larger developments, such as multi-storey buildings or group housing societies covering 2,000 square meters, the cost could range from Rs 2.5 lakh to Rs 3 lakh.
This series of fee hikes underscores GDA's efforts to fund critical infrastructure projects, but it also raises concerns about increased expenses for developers and potential impacts on housing affordability in Ghaziabad.
