Going the Mumbai way to raise funds

The Pune Metropolitan Region Development Authority,the setting up of which was cleared by the cabinet on Thursday,will be looking at the sale of plots under its jurisdiction as the primary source of revenue.

Written by Nisha Nambiar | Pune | Published:February 22, 2009 12:39 am

Pune Metropolitan Region Development Authority to follow MMRDA in selling plots

The Pune Metropolitan Region Development Authority (PMRDA),the setting up of which was cleared by the cabinet on Thursday,will be looking at the sale of plots under its jurisdiction as the primary source of revenue. This will be supplemented by development charges for these plots,thus ensuring a recurring revenue stream.

With the Mumbai Metropolitan Region Development Authority MMRDA generating the bulk of the revenue,about Rs 1,700 crore,from disposal of plots in Bandra-Kurla Complex in Mumbai,the PMRDA may not have too much to worry on the revenue front,provided it too is ready to hive off prime property for private development.

The PMRDA has its task cut out as it merely has to follow the administrative model of its Mumbai counterpart. The seed capital to kick-start the PMRDA will come from the two municipal corporations besides the three cantonment boards. Some municipal councils would also contribute to the seed capital.

“The PMRDA functioning will be similar to that of the MMRDA. The MMRDA has created a corpus to finance developmental activities by the local authorities. A reserve fund is also helping MMRDA to finance infrastructure projects in the region,” said principal secretary (urban development) T C Benjamin.

The MMRDA has set up a revolving fund by depositing 45 per cent of the loan repayments by its implementing agencies. Sale proceeds from Bandra-Kurla Complex and interest earned thereof went to the making of the reserve fund.

“The MMRDA has extended loan facilities from its resources for infrastructure financing,” Benjamin said,adding that such projects will have to be replicated by PMRDA.

The Metropolitan Planning Committee that will function as the planning body of the PMRDA will look into the integrated development of the region.

The government has approved the required amendment to the Maharashtra Region Town Planning (MRTP) Act,1966 to constitute an area development authority for which the government will come out with an ordinance.

Meanwhile,Divisional Commissioner Dilip Band,who is also the monitoring authority of the PMRDA,said he would conduct a meeting in the first week of March to take stock of the situation.

Former deputy director of the state planning department Ramchandra Gohad said the formation of the PMRDA will help in new infrastructure projects.

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