Updated: August 18, 2021 4:07:37 pm
The BMC through its Development Plan (DP) department has received Rs 2,100 crore as revenue from April 1 to July 31. This comes as a huge relief for BMC, which has been facing a revenue shortfall due to COVID-19 restrictions.
Municipal Commissioner I S Chahal in the budget speech of 2021-22 had set a target of Rs 2,000 crore income from the DP department, which is the third biggest source of revenue after property tax and GST compensation in lieu of octroi abolition. However, since January and after second wave, the situation in the real estate sector has started improving. With several concessions offered by BMC, many developers have rushed to pay their dues.
Officials from the DP departments said they are hoping to cross Rs 5,000 crore by the end of the financial year (March 31, 2022). Last year, due to strict lockdown guidelines, revenue from development plan fees and premium was severely hit as BMC received only Rs 1,200 crore in 2020-21 against the target of Rs 3,879 crore.
“The main reason for exceeding the target is concessions offered from BMC. We are hopeful of crossing Rs 5,000 crore revenue by the end of the financial year. Developers are taking advantage of concessions,” Vinod Chithore, Chief Engineer, Development Plan department, told The Indian Express.
In February, the BMC’s Standing Committee cleared a proposal under which 50 per cent concessional rate for premium for all new construction projects—regardless of size and type—was sanctioned in the city. The scheme is also applicable for ongoing projects. The concessions will be in effect till December 31.
The state government had announced a waiver in development cess, which will end on August 19.
Officials said that from the DP department, BMC had so far earned the highest amount — Rs 5,827 crore — in 2015-16. BMC’s earning from property tax is still lagging. For 2021-22, BMC set a target of Rs 7,000 crore from property tax, but so far they have received about 25 per cent.
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