BMC to sell plots for revenue

The cash-strapped Brihanmumbai Municipal Corporation (BMC) plans to sell off its smaller VLT (vacant land tenancy) plots to the respective occupants at markets rates. The BMC is preparing a policy of VLT, which will help the civic body generate over Rs2,000 crore. And, if the occupants are not able to pay the market rate, then they will have to vacate the plot.     

Most of the corporation’s vacant plots have been given on lease to individuals and the rent of these VLTs is very low. However, the civic body is now eyeing these plots to earn revenue. “Currently the BMC is earning rent of Rs3.5 lakh annually from all these plots together. The new VLT policy approved the civic body will get about Rs2,000 crore,” a BMC official said.

The vacant plots, which are spread on an area of 2,98,906 square metres, are located in the island city, most of them between Parel and Sion and are even by conservative estimates are worth Rs2,000 crore.

“The idea is to handover the small plots to the occupants at the market rate. If the occupants cannot pay the market rates, they will have to leave,” the official said. “Under the new proposed policy, the VLT larger plots (over 300 square metre) will remain on rent, but at market rates.”

“Plots less than 300 square metre are too small to construct on, but the BMC needs to retain the larger ones and get rent at market rates from the occupants,” a senior civic official said.

Additional municipal commissioner Anil Diggikar said that the BMC is still preparing the policy. “It will be implemented only after approval from the improvement committee.”