LUCKNOW: Housing development authorities have announced an increase in fees required for construction activities in key cities throughout the state. Aspiring developers must now pay the revised development charges set by the housing authorities prior to commencing any civil work.
Dedicated bodies have been established to oversee construction efforts in over 30 cities in UP, including Lucknow, Kanpur, Varanasi, Ghaziabad, Meerut, Agra, Gorakhpur, and Jhansi. The housing department approved these revised rates earlier this month, factoring in rising construction costs and inflation.
Development charges have been raised by a minimum of 50%, with some areas seeing increases nearing 90%. For example, in Ghaziabad, a critical area in the National Capital Region (NCR), fees have risen from Rs2,500 per sqmt to Rs4,170 per sqmt, marking a 67% increase. A senior officer from the housing and urban planning department explained, “Development charges have remained unchanged for nearly a decade. During this period, costs, taxes, and other expenses for services and materials have surged. Thus, a revision of the fee structure became necessary.”
In Lucknow, Kanpur, and Agra, the development fee increased from Rs1,400 per sqmt to Rs2,475 per sqmt, representing a 77% hike. Similarly, those undertaking construction in Varanasi, Prayagraj, Meerut, Moradabad, and Bareilly will face fees of Rs1,510 per sqmt. The new rates were announced after the government revised the UP urban planning and development rules on January 2. Principal Secretary of the housing department, P Guruprasad, emphasized that the new fee structure would help development authorities generate higher annual revenue. “These funds will be allocated to improve urban infrastructure in the state,” he stated. The housing development authorities reported an annual income of about Rs12,740 crore in the last financial year.
