To enable the cash-strapped Maharashtra State Road Development Corporation (MSRDC) to raise funds for implementing infrastructure works, the Maharashtra government Tuesday decided to give concessions on various state levies on developing the corporation’s land for commercial purposes.
The move is expected to make it financially viable for the corporation to monetise its current and future landholdings, and enable development of some of its prime land parcels at Napean Sea Road in South Mumbai and along the Mumbai-Pune expressway.
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“The state government appoints MSRDC as the implementing agency for a number of infrastructure projects. It is not easily possible for the MSRDC to raise funds by commercially exploiting land transferred to it due to the various terms and conditions of the agreement with the public works department, and certain norms of the state revenue of forest department regarding land. This will help MSRDC build up funds for the various infrastructure works,” a state government official said.
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However, the state cabinet has put some riders. The MSRDC will have to first draft land disposal rules to make commercial use of any of its land parcels and get these approved by an appropriate authority.
It will also be mandatory for MSRDC to deposit funds raised from monetising land in a nationalised bank account and use the same for meeting the corporation’s capital expenditure.
The state has decided to form a five-member committee under the chairmanship of the principal secretary of the public works department, under which the MSRDC is constituted, to manage the deposited funds, a state government official said.