Bill to revamp Hyderabad’s civic administration on anvil

Telangana's government is set to replace the Greater Hyderabad Municipal Corporation (GHMC) Act, which has governed the city's civic administration for seven decades, with a new bill. Officials announced Monday that the move is necessary due to the massive expansion of the metropolitan region. The draft legislation, named the Telangana Core Urban Region (Integrated Governance) Bill, 2026, was published on the GHMC website Sunday, inviting public input.

A senior GHMC official explained that the 1955 Act, despite amendments, is insufficient for a region that has grown from 15 lakh people in the 1950s to nearly 1.3 crore today. Multiple civic agencies now manage planning, roads, water, transport, and disaster response. The new bill aims to consolidate these functions under an integrated governance framework.

The legislation will cover three municipal corporations formed from the recent GHMC reorganization: Greater Hyderabad Municipal Corporation, Cyberabad Municipal Corporation, and Malkajgiri Municipal Corporation. It allows for decentralized administration within these corporations. Suggestions are being accepted until July 24 from citizens, industry groups, and urban planners.

Key reforms include shifting property tax from an annual rental value system to a capital value system, based on government market values used for registration. Officials anticipate this will significantly increase property tax collections, potentially doubling tax liability for many owners. To ease the impact, the new structure will phase in for existing buildings, while new constructions will adopt it immediately. Other proposed reforms include self-assessment of property tax, an integrated property identity code, rebates for timely payments, incentives for green buildings, and the removal of outdated taxes like octroi and dog tax.

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Hyderabad has grown from a city of around 15 lakh people in the 1950s to an urban agglomeration of nearly 1.3 crore people, with multiple civic agencies sharing responsibilities over planning, roads, water supply, transport, disaster management and public services. The new bill seeks to bring these functions under an integrated governance framework.