Civic body to get Rs 600 crore premium for redevelopment

Even as it reworks estate policies of municipal properties, the civic administration is expecting to garner over Rs 600 crore through premium from developers for redevelopment.

BMC had sanctioned redevelopment of 104 civic properties up to 2012.

While the civic body earned a premium of Rs 408 crore last year of the total Rs 1,036 crore, it plans to recover the remaining amount in the next few months in phases.

A senior civic official in the estate department said, "Developers have to pay premium at various stages of redevelopment. While a major part of it is collected at the time of issuing letter of intent, the remaining is collected after various approvals are granted."

Meanwhile, the civic administration is also expecting to garner additional revenue through premium payments under slum rehabilitation projects.

A recent directive by the state government said, in addition to the premium paid to Slum Rehabilitation Authority for redevelopment projects, developers will have to pay premium to the civic body for projects on BMC land.

BMC would henceforth receive compensation from developers equivalent to 25 per cent of land value calculated as per ready reckoner rate.

It is also in the process of forming other policies, including those for putting up hoardings on municipal buildings, for change of user of municipal properties and for welfare centres.

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