Describing the task of improving the financial position of the Brihanmumbai Municipal Corporation as a challenge, municipal commissioner Subodh Kumar, on Tuesday, said he was forced to hike the development charges to fund its infrastructure projects.
Development charges are recovered from builders when they submit proposals for new projects or to make changes.
The recent amendments made by the state government in the Development Control Regulation and Maharashtra Regional Town Planning Act will augment the municipal corporation’s revenue considerably.
The most-recent modification of DC Regulation 35 introduces the innovative concept of fungible floor space index (FSI) in lieu of premium for allowing elevation features, balcony and pocket terrace with fungible characteristics.
This modification is likely to increase revenue accruals to the extent of Rs1,500 crore annually and help the BMC bridge vital gaps in major infrastructure needs of the heavily-burdened Mumbai, such as the coastal freeway roads.
The development charges will be now fixed based on specific percentage of the ready reckoner rate, which will vary based on market value of the land. Also, the BMC will charge special permission to exercise discretionary power and grant additional FSI.
As per the new modifications, the BMC will charge for granting 0.33 FSI in the suburbs, which will result in revenue of around Rs375 crore in the next few years, and developers will have to pay extra Rs5,000 per sqm as additional development cess for the urban renewal scheme and cluster development permits for enhanced FSI for redevelopment of buildings constructed prior to 1969.
Similar provision has also been made in the redevelopment proposals allowed under 33(7). Another provision is made under regulation 33(5) for meeting the cost of infrastructural liability in the redevelopment of Mhada layouts, wherein 12.50% of the charges collected by the state housing board is to be shared with the municipal corporation.
“With these steps it was possible for me to step up the capital outlay for the civic infrastructure from Rs7,637.65 crore in 2011-12 to Rs9,359.76 crore in 2012-13,” said Kumar, while presenting the budget.
