As revenue dips for the civic body, the Pune Municipal Corporation (PMC) is exploring new revenue sources and has decided to go for value capital finance (VCF), starting with the Mutha riverside.
Municipal Commissioner Kunal Kumar said, “The study for VCF has been carried out by the PMC to raise revenue source for the civic body. The PMC has a river passing through the city, which provides the best option for VCF and a new source of revenue.”
He added that the PMC has already conducted hydraulic study of the Mutha riverbed. “The blue and red lines of the river would be fixed by the irrigation department. Once the technical process is complete the civic administration can identify the land alongside Mutha river that can be developed as riverfront area by private properties and implement VCF for it,” said Kumar, adding that there was a lot of scope for riverfont VCF in the city.
The Union government had said land was one of the lesser used internal revenues. Land value appreciates due to regulatory changes and investments in public goods infrastructure, it had said. Such increases in value can be captured by the government through various VCF tools and, if implemented, can generate substantial internal resources for urban local bodies, it added.
Similarly, the PMC carried out a study to achieve full potential of advertisement revenue by making a policy for destination-specific potential, having a dynamic pricing module. “The preliminary report of the study is prepared and part of it is being implemented now. Thus, the revenue target from advertisement has been set to Rs 60 crore for the next financial year as against Rs 27 crore for the current year,” said Kumar.
According to the study, he said, the PMC has the potential to increase revenue between Rs 27 crore and Rs 200 crore every year through advertisements. It identifies sites that have the potential for advertisement tax and mobile display opportunities, such as in public transport vehicles, vulnerable sites prone to illegal/unauthorised display of advertisements, undertakes a market assessment of the commercial rates for outdoor advertising for various sites.
Kumar said the civic body also carried out a study for improving property tax collection. “Most of the recommendations of the study have already been implemented by the PMC so there is hardly any scope to introduce new means to increase revenue from property tax,” he said.
The PMC was already carrying out a geo-tagging of all the properties in its jurisdiction, alongwith identifying unauthorised properties, he added.