WITH mega infrastructure projects in the pipeline for the city amid the possibility of a fund crunch, the Pune Municipal Corporation (PMC), acting on the directives of the state government, has set up five special funds which will be channelled for developing specific projects. The funds will be raised from the ‘Premium FSI’ that will be allotted to real estate developers.
For this financial year, PMC has set a target of raising Rs 55 crore for the Pune Infrastructure Fund, Rs 23 crore for Critical Infrastructure Funds for Information Technology and Enabled Services (ITES), Rs 2 crore for Heritage Conservation Funds, Rs 20 crore for Urban Transport Land Development Charges and Rs 40 crore for Urban Transport Building Development Charges.
“The recommendations for opening up an account for raising special funds was made by the City Engineer’s department. The funds have been planned with a set target for the current financial year,” said Ulka Kalaskar, PMC chief accountant. Kalaskar said the state government’s communication, about setting up the funds, was received before the annual budget and was included in it.
According to the City Engineer’s department, the state government made a provision in the revised development plan of the city, to raise special funds from the Premium FSI allotted to real estate developers.
“The state government has emphasised the need to raise funds separately. It has also clarified that the PMC would have to share 50 per cent of the revenue from the Pune Infrastructure Fund and the Critical Infrastructure Funds for ITES with the state government,” said a civic officer, adding that the funds would be raised from the premium recovered through building development permissions or commencement certificate given to the new constructions in civic jurisdiction.
He said the state government has made it clear in the new Development Control (DC) rules of the city that the amount of premium collected should be kept in a separate development fund, as Pune Infrastructure Fund, and utilised for the purpose of developing new infrastructure or upgrading it, as well as implementation of Development Plan proposals and civic amenities.
Similarly, the ITES industry buildings could be given a total maximum permissible FSI up to three, including 200 per cent of additional FSI over and above, permitted by the PMC. The premium received from it would be deposited in a separate fund, of Critical Infrastructure Fund for IT/ITES industries, and the fund would be utilised only for the creation of critical infrastructure for IT/ITES industries.
To conserve heritage buildings in civic jurisdictions, the PMC would keep two per cent of the total development charges collected, to undertake repair and maintenance work of the structure. “Thus, the… development charges collected by the civic body in a year shall be transferred to the Heritage Conservation Fund,” said a civic officer.
The heritage buildings are to be maintained by owners but the funds would help provide monetary support for maintenance and repairs, for which a separate dedicated fund is being created that would be at the disposal of the municipal commissioner, who will utilise these funds on the advice of the Heritage Conservation Committee, officials said. The amount would be either disbursed to the owner by the PMC or the civic body itself will spend it for the work proposed for repair and maintenance of the structure.
The city is also going to have urban transport projects, such as the Metro rail and BRTS, which need a large amount of funds. So, the state government has empowered the PMC to raise the funds through additional fees from development charges while sanctioning new building plans, said officials.
The funds would be deposited separately in the Urban Transport Land Development Fund and the Urban Transport Building Construction Fund, so that they are utilised whenever required, for land development or building constructions like stations of urban transport.