Hyderabad: In a move similar to global initiatives like the United Nations’ Green Climate Fund and Children’s Fund, Hyderabad is set to have its own dedicated transport fund. This fund, spearheaded by the Hyderabad Unified Metropolitan Transport Authority (HUMTA), aims to bolster road and flyover development while reducing reliance on municipal administration.
The state govt will pool funds from motor vehicle taxes, fuel sales, and property registrations recorded within the city. Accordingly, Hyderabad Metropolitan Development Authority’s HUMTA is drafting proposals regarding the pooling of funds from existing sources to create a steady revenue stream for the initiative to ensure smooth traffic flow and congestion-free movement of vehicles.
Currently, Telangana generates Rs 4,000 crore annually from life and quarterly vehicle taxes, Rs 10,000 crore to Rs 12,000 crore from VAT on fuel, and over Rs 12,000 crore through property registrations.
A portion of these earnings will be redirected to Hyderabad’s transport fund, with an expected annual corpus of at least Rs 2,000 crore. Additionally, HUMTA is exploring alternative revenue streams to further strengthen the fund.
Congestion-free roads
“We will conduct a comprehensive study in the coming weeks to finalise the framework for this fund,” said B Jeevan Babu, managing director, HUMTA. “The goal is to enhance road conditions, construct new flyovers, and upgrade existing infrastructure. Once the study is completed, we will submit our proposals to the govt for approval.”
The idea of an urban transport fund isn’t new. In 2016, the National Urban Transport Policy recommended potential revenue sources such as fuel tax supplements, property taxes on landowners, and employer levies to sustain urban transport projects.
Surat was the first Indian city to implement a dedicated urban transport fund to counter the rising dependence on personal vehicles due to the absence of a strong public transport system. The city’s fund, backed by vehicle tax, parking charges, and advertisement licence fees, has played a crucial role in improving mobility infrastructure.
