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Journalism of Courage
After the Union government pressurised banks for giving concessions in home loan rate to promote low cost housing, the Pune Municipal Corporation on Tuesday announced slashing of developing premium rates for construction of residential housing projects by half for small houses of 50 sq metre.
“The construction industry has been hit hard due to global economic recession. This had an adverse affect on the revenue collection of the PMC as the number of proposal seeking permission for building construction has reduced by half in last four months,” Municipal Commissioner Praveensinh Pardeshi said ata press conference on Tuesday. There has been a market correction and it is estimated that the demand for smaller houses is going to increase, he said. “The PMC in an effort to promote low cost housing has decided to reduce the premium charges on development of housing projects with smaller houses.” The premium for houses will be reduce by 50 per cent for smaller houses up to 50 sq metre while 25 per cent reduction will be for houses sizing between 50 sq metre to 80 sq meter, Pardeshi said. The civic administration had estimated revenue collection of Rs 250 crore from the charges on building permissions and recovered Rs 120 crore in first six months at an average of Rs 20 crore every month. “There has been average collection of Rs 10 crore from building permission charges in last four months,” he said. The reduction in charges on premium would encourage developers to come up with projects of small housings and in turn help in increasing the revenue of civic administration, Pardeshi said.
