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PCMC earns record revenue from building permission

In the 12-month period, it netted Rs 1,036 crore in revenue, the highest in the nearly four-decade history of the municipal corporation.

Despite Covid, PCMC managed to collect record revenue from building permissions: Data

In 2020-21, the revenue from building permissions had fallen to Rs 380 crore. (Express File/Representative Image)

THE Pimpri-Chinchwad Municipal Corporation has marked a historic high in revenue from building permission by the end of the 2021-22 financial year, bringing a big cheer on Gudi Padwa, the Maharashtrian New Year. In the 12-month period, it netted Rs 1,036 crore in revenue, the highest in the nearly four-decade history of the municipal corporation.

“This is a record revenue collection. The building permission department of the PCMC has never registered such a high collection in the past,” Joint City Engineer Makrand Nikam said on Saturday.

In 2020-21, another pandemic year, the revenue from building permission had fallen to a new low as PCMC could collect only Rs 380 crore.
“That was because there were Covid restrictions in place which impacted the construction activity,” said Nikam.

In 2019-2020, the PCMC earned a revenue of Rs 650 crore. A nationwide lockdown was imposed by the Centre in the third week March 2020. “Yet in 2019-2020, we collected only Rs 650 crore revenue from building permission when restrictions were not in place. Only for the last 10 days of that fiscal year, restrictions came into force as all construction activity was halted,” said Nikam.

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As for 2021-22, “we must have given over 1,500 permissions for commercial, residential, and industrial projects. We are still collating the data and the actual figures would be available by next week,” Nikam said.

The building permission department gets revenue by way of building permission fee, development charges, and premium charges. PCMC officials said such a high revenue collection reflects the momentum that the construction activity has achieved. “For two years, construction activity had slowed down. Builders postponed their plans or were going slow. And residents were also not keen on making modifications to their houses or building a new house,” said an official.

Anil Pharande, president, Credai, Maharashtra, said, “This fiscal year, builders put forth several projects as the Unified Development Control Rules came into effect. This gave them the benefit of additional FSI. Similarly, in anticipation of the rise in Ready Reckoner rates too, several construction projects were put before PCMC for permission.”