Mysuru: The Mysuru Development Authority (MDA) has earmarked ₹460 crore in its 2026–27 budget to develop a large housing layout spread over approximately 2,000 acres to provide shelter for the landless. The project is expected to be one of the biggest housing initiatives undertaken by the authority in recent years.
MDA Commissioner K R Rakshit presented the budget on Monday in the presence of Deputy Commissioner G Lakshmikanth Reddy, who is also serving as the Chairman of the authority. The Deputy Commissioner is currently heading the MDA as there is no political nominee appointed to the post.
The Mysuru Development Authority was formerly known as the Mysuru Urban Development Authority (MUDA).
Major focus on housing layout development
A significant portion of the 2026–27 budget has been earmarked for the proposed housing layout project.
According to officials, the layout will be developed in partnership with farmers from Bommenahalli, Kamarahalli and nearby villages located in Yelwal hobli of Mysuru taluk. The initiative is aimed at providing housing opportunities for the landless while ensuring that landowners also benefit from the development.
The project is proposed to be implemented on a voluntary basis. Farmers willing to provide their land for the project will participate in a land pooling model instead of conventional land acquisition.
Under the plan, the authority will convert the farmland into developed residential sites with infrastructure and basic facilities.
Land pooling model to be adopted
Officials said the project will follow a 50:50 land-sharing formula between the development authority and the landowners.
Under this arrangement, the Mysuru Development Authority will retain 50 per cent of the developed sites, while the remaining 50 per cent will be returned to the farmers who provide their land for the project.
Deputy Commissioner Lakshmikanth Reddy said the arrangement eliminates the need for large funds to acquire land.
“Already the landowners of around 500 acres have agreed for the project. If we are able to secure at least 1,000 acres, we will initiate the project after obtaining the government’s approval,” he said.
He added that since the project is based on a 50:50 sharing model, the authority will not require funds for land acquisition, making it financially viable.
Peripheral road proposal in the pipeline
Apart from the housing layout project, the authority has also made provisions for other infrastructure works in its budget.
The MDA has earmarked ₹7.43 crore for preparing the Detailed Project Report (DPR) for the proposed peripheral road around Mysuru city.
Officials said the road project is intended to ease traffic congestion and improve connectivity in the rapidly expanding city. A proposal regarding the project has already been submitted to the government.
Renovation of MDA office
The authority has also allocated ₹15 crore for the renovation of its office building and the improvement of basic facilities for staff and members of the public who visit the office.
Officials said the renovation will focus on improving infrastructure, workspace facilities and public service areas to enhance efficiency and accessibility.
Lake development projects
Another major component of the budget involves the development and rejuvenation of several lakes in Mysuru city.
The MDA has earmarked ₹64.21 crore for the development of lakes located in Yelwal, Sahukarhundi, Bommenahalli, Bhugathahalli, Chikkahalli and Nadanahalli, as well as a pond in Koorgalli.
Officials said the lake development initiatives aim to improve water conservation, restore ecological balance and create recreational spaces for residents.
The authority also plans to undertake the second phase of the Kabini water supply project, for which ₹3.5 crore has been allocated in the budget.
In addition, ₹31.9 crore has been earmarked for various other development works in the city.
Revenue projections and surplus
In its maiden budget after being renamed as the Mysuru Development Authority, the agency has projected total revenue of ₹799.9 crore for the financial year 2026–27.
The expected income includes ₹227.3 crore from the General Administration and Master Plan Fund and ₹48.41 crore from lake rejuvenation fees.
The authority also anticipates generating ₹98.81 crore through various taxes and cess.
A major share of the revenue, estimated at ₹407.75 crore, is expected to come from the auction of sites, rental income from commercial buildings, lease agreements and the allocation of civic amenity (CA) sites.
Out of the total revenue, the authority plans to spend ₹579.18 crore on various development projects during the financial year.
After the planned expenditure, the MDA expects a surplus of ₹220.72 crore, which will be retained in the form of fixed deposits.
Background and future outlook
The development authority has been under public scrutiny in recent months after controversies related to site allotments under the earlier MUDA administration.
Officials said the new budget focuses primarily on development-oriented initiatives, housing expansion and infrastructure projects aimed at supporting Mysuru’s growing urban population.
If implemented as planned, the proposed housing layout and other infrastructure initiatives are expected to play a significant role in shaping Mysuru’s urban expansion and improving housing access for the landless in the region.