Chandigarh (Haryana) [India], January 2 (HBTV): The Haryana Cabinet, under the chairmanship of Chief Minister Nayab Singh Saini, has approved the revision of the indexation mechanism for calculating External Development Charges (EDC) in various potential zones of the state.

The indexation policy, which was based on EDC rates from 2015, had not been revised for the past eight years. Prior to this policy, EDC rates were increased annually by 10%. With the new approval, the Cabinet has reinstated the policy of increasing EDC rates by 10% every year going forward.

Additionally, the Cabinet approved engaging a consultant to determine the base EDC rates for future indexation. Until the base rates are finalized, the Cabinet has approved a one-time increase of 20% in EDC rates effective from January 1, 2025. From January 1, 2026, and thereafter, the rates will increase annually by 10%.

This approval enables the issuance of policy instructions under Section 9A of the Haryana Development and Regulation of Urban Areas Act, 1975, and amendments to the Haryana Development and Regulation of Urban Areas Rules, 1976.

The EDC rates were originally set based on recommendations from a Cabinet sub-committee comprising the Finance Minister, Public Works (B&R) Minister, Social Justice and Empowerment Minister, and Health and Medical Education Minister.

Notably, in 2018, the government requested IIT Delhi and IIT Roorkee to determine the EDC rates for Gurugram and Rohtak Circle, and Faridabad, Panchkula, and Hisar Circle, respectively. However, both institutes expressed their inability to undertake the task, resulting in the continuation of the existing indexation policy and rates until now.

(ANI)