Hyderabad: Defence minister Rajnath Singh has approved the allocation of Rs 303.62 crore for development works in the Secunderabad Cantonment area, marking a shift in how compensation for defence land transfers is utilised.
Traditionally, when cantonment land is transferred for public projects, the compensation is deposited into the Consolidated Fund of India. However, following persistent appeals and formal requests, this compensation will now be deposited into a dedicated escrow account linked to the Secunderabad Cantonment Board (SCB), ensuring the funds are ring-fenced exclusively for local development projects.
Land transfer compensation
This decision comes in the context of the Defence ministry transferring land to the Hyderabad Metropolitan Development Authority (HMDA) for the construction of elevated corridors aimed at easing traffic congestion in the area. The Telangana government is required to pay Rs 303.62 crore as compensation for this land. Instead of routing the funds through central treasury protocols, the new arrangement allows the SCB direct access to the funds for infrastructure improvements within the cantonment.
The Defence ministry has instructed the SCB to prioritise four key areas once the compensation is deposited: upgrading underground drainage systems, improving drinking water supply, constructing retaining walls along drainage channels, and developing internal roads.
Kishan Reddy, Eatala Rajender express gratitude
Kishan Reddy and other local leaders, including Malkajgiri MP Eatala Rajender, have expressed gratitude to Rajnath Singh for this arrangement, calling it a “watershed moment” for the cantonment.
They highlighted that such a direct allocation to the local board is unprecedented and will ensure transparency and accountability in the use of public funds.
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