GURUGRAM: The state cabinet — led by chief minister Nayab Singh Saini — has approved the reclassification of Pataudi-Hailey Mandi and Farrukhnagar zones from ‘low potential’ to ‘medium potential’. The move is expected to stimulate economic growth and enhance state revenue, but has sparked concern about rising property prices with increasing development charges.
These zones — categorised under the Haryana Development and Regulation of Urban Areas Rules, 1976 — were initially deemed to have limited urban growth capacity. However, recent assessments have revealed that they have been evolving with the establishment of residential colonies, industries, warehouses, and institutional development.
The reclassification followed a representation to the govt on Aug 1, highlighting lack of revenue generation from these zones because of their ‘low potential’ status. The upgrade aims at boosting revenue collection through various channels — such as external and internal development fees, licence fees, and conversion charges.
The move received a mixed response from residents. While some hailed it for increasing the possibility of development, improved infrastructure, transportation, and employment opportunities, others expressed concern about an increase in property prices and other public services.
Pradeep Aggarwal, founder and chairperson of Signature Global (India) Ltd, said, “For homebuyers, this presents both opportunities and challenges. On the positive side, the reclassification will spur the creation of modern residential projects with improved infrastructure, enhanced connectivity, and access to essential amenities. Buyers can look forward to better property value appreciation in the long run, making these areas attractive for both end-users and investors.”
Aggarwal, however, pointed out that increased development charges and licence fees could impact affordability for some homebuyers, and that the influx of projects might raise questions about sustainable growth.
Both Farrukhnagar and Pataudi-Hailey Mandi occupy strategic locations near the hyper-potential Gurgaon-Manesar urban complex. Farrukhnagar has garnered substantial developer interest because of its proximity to the Reliance Model economic township, the KMP Expressway, and expanding railway infrastructure.
Similarly, Pataudi-Hailey Mandi’s location off NH-8 and KMP Expressway positions it favourably for urban expansion and infrastructure development.
Officials said Haryana govt anticipated that this upgrade would significantly increase revenue collection from developers. “Higher licence and development fees are expected to strengthen the state’s financial position while promoting planned urbanisation,” an official said.
This reclassification represents a calculated step toward fostering economic growth and establishing Gurgaon as a premier development hub, officials said.
Source Homevior.in
