The Hitec City, Hyderabad's famous landmark symbolising the IT might of the state's capital and located in just 300 acres, has set a record of sorts in property tax collection.

The companies and other property owners located in this relatively tiny area pay Rs 2 crore a year as property tax with tax collections crossing more than 95%.

In sharp contrast, a mere 45% of the residents living within the limits of Sherilingampally municipality pay their house tax, making the Hitec City the biggest tax payer in the area.

The Hitec City at Madhapur was declared as Industrial Area Local Authority by the state government in 1999 after the construction of Cyber towers by L&T was completed.

The Andhra Pradesh Industrial Infrastructure Corporation, which is the nodal agency responsible for all the infrastructural developments in this area, takes care of the administration of the Hitec City with an active support from an advisory committee comprising the representatives of L&T, Mindspace, and Vanenberg, among others. 

Besides collecting property tax, APIIC also accords building permissions in the Hitec City. This helps the companies in securing speedy permissions for their constructions as compared to the time taken for such clearances from the Municipal Corporation of Hyderabad, according to builders.

With substantial revenues generated in a relatively small area, APIIC could attend to maintenance of inner roads and street lights effectively even though it has to cede 35% of the property tax collections to the local municipal authorities.

With the funds, APIIC has offered two patrolling vehicles to the Cyberabad police for strengthening the security of the Hitec City, said D Pardhasarathi Rao, chief engineer of APIIC, who looks after the administration of IALA.

Going by the pace of development and the construction work in this area, the property tax collections in the Hitec City may double in the next couple of years, Rao told Business Standard.

APIIC is now spending around Rs 2.5 crore for widening the road stretch between Cyber Towers and Mindspace, which is expected to be completed by November 15, 2005. But the concern of IT professionals, who are working here is mainly over the maintenance of the incoming roads falling under the purview of Sherilingampally municipality.