Haryana News: The Haryana government has taken a big step to control and increase revenue on commercial activities happening on agricultural land adjacent to urban areas. Now it will be mandatory to give CLU (Change of Land Use) as well as EDC (External Development Charge) for schools, hospitals, petrol pumps or other commercial construction in these areas. Earlier this system was applicable only in urban areas, but now preparations are being made to implement it in agricultural areas adjacent to cities.

Preparation to implement EDC

The local body department has prepared a new policy draft based on the survey and ground report, which was sent to Chief Minister Naib Saini on Saturday. After the in -principle approval of the CM, this proposal will be placed before the State Cabinet. As soon as this policy is implemented, commercial construction on agricultural land around cities will become expensive.

What was the rule till now?

Till now, EDC was applicable in Haryana only on the land coming under the purview of the Municipal Corporation, Municipal Council and Municipality. Only CLU fees were charged for commercial use on agricultural land. But in the new proposal, both these charges have now been made mandatory.

Builders already charge EDC

In Haryana, real estate developers already collect EDC fees from the customers by including the project cost. This charge is usually charged per sqft foot and uses standards such as the floor area ratio (FAR).

How are the rates of EDC fixed?

There is no fixed rate of EDC. It is calculated on the basis of the type, location and growth level of the project. In December 2024, the Haryana government approved a 20% increase in EDC rates in real estate zones. After this, a provision for annual growth of 10% has also been made every year.