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PMC mulls doubling of development charges for Metro rail

Among the various charges recovered while sanctioning building construction proposal, the PMC incurs land development charges, building construction charges as per the size of construction.

Written by Ajay Khape | Pune |
April 29, 2016 12:46:27 am
 PMC, metro, pune metro, pune metro rail, MRTP, indian express pune The much-awaited Metro in city.

THE DELAY in implementation of the Metro rail project for the city has been a contentious issue for long and it still awaits the approval of the Central government. However, citizens purchasing property are all set to face financial burden even before it is implemented, as the Pune Municipal Corporation (PMC), citing the state government communication, has proposed to double the development charges for construction of new buildings to raise money for the implementation of the Metro rail project.

In a proposal tabled in the city improvement committee, the civic administration said that the state had made necessary amendments in the Maharashtra Region Town Planning (MRTP) Act that enables any local civic body or development authority to increase development charges for raising funds for ambitious projects.

Among the various charges recovered while sanctioning building construction proposal, the PMC incurs land development charges, building construction charges as per the size of construction. At present, the PMC recovers land development charges that is one per cent of the ready reckoner rate for residential buildings, 1.5 per cent for industrial buildings and 2 per cent for commercial buildings. Similarly, the building construction charges is 4 per cent for residential projects, 6 per cent for industrial and 8 per cent for commercial projects.[related-post]

In 2015-16, the PMC collected a total of Rs 104 crore as the land development and building development charges from the total of Rs 786 crore received from building permission. Thus, if the same revenue is collected this financial year, then Rs 100 crore would be collected for Metro rail even though its actual implementation is yet to begin.

“Thus, it is proposed to the double the existing land development charges and building construction charges as per the communication by the state government,” said municipal commissioner Kunal Kumar in the proposal.

The increased collection of charges would be kept in a separate account, it said, adding that the collected amount would be used for the ambitious urban transport project.

The increasing population and vehicles within the Pune metropolitan region has led to formation of a special purpose vehicle for implementation of the Metro project after the nod of state government. Thus, the civic administration be allowed to double the development charges for the construction allowed from the date of formation of special purpose vehicle, it further added.

“The proposed increase in development charges is as per the state communication and not by PMC. There is need to be raise funds for Metro rail project,” Kumar said.

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