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Proposed 100% Development Fees Near Metro Line Raise Concerns

26 Oct 2023

The Pune Metropolitan Region Development Authority (PMRDA) has proposed changes to development charges in the region, particularly regarding areas near the third Metro line. The proposal suggests a 100% additional development charge for areas close to the Metro line, while interior areas would face charges of either 75% or 50%, depending on their growth potential. These changes will mainly affect 23 merged villages near the Metro line, where the charges will increase from 0.5% to 1%, while interior areas are likely to see a reduction in development charges. The third Metro line, spanning 23 kilometres from Hinjewadi to Shivajinagar, is being executed by the PMRDA through a public-private partnership. The proposal has been sent to the Urban Development Department (UDD) for final approval.

 

Under the Maharashtra Regional Town Planning Act (MRTP), local authorities are allowed to levy 100% additional development charges to fund vital urban transport projects, including the Metro. However, the PMRDA's recommendation for reducing these charges for areas farther from the Metro line may require an amendment of the act. The Chief Minister had directed the PMRDA to submit a sector-wise revised plan for collecting additional development charges for infrastructure projects from May 2023. Previously, the Chief Minister had waived 100% development charges retrospectively from July 2018 to April 2023. Some builders had opposed the blanket charges and suggested that a more targeted approach based on the area's proximity to the Metro would be more beneficial. Similar initiatives to impose double development charges for Metro projects were waived in other cities like Nagpur and Thane. Credai Pune Metro's president also urged the government to reconsider imposing additional development charges, as they could burden homebuyers, and suggested focusing on charging only the affected areas, if necessary.

 

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