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REFORMS TO BOOST REVENUE

Mumbai is all set to get a massive boost in funding for infrastructure projects. Owing to major reforms undertaken by the MCGM relating to properties of it owns, revenue collected for infrastructure projects is likely to increase manifold. The MCGM owns close to 551 hectares of land divided into 4,551 plots, most of which have been leased for various purposes. Originally leased at nominal rates, these properties fetch the corporation an annual revenue of Rs. 23 crore. MCGM has now taken steps, which it claims, will skyrocket revenue generated to Rs. 1,000 within two years. Among four reforms taken to optimize the revenue from these leasehold plots, three have already got the improvements committee’s nod. These include hiking the transfer fee for these plots to 50 per cent of the ready reckoner value from the existing seven percent, doubling lease rents for these plots and hike in amounts to be collected for redevelopment of MCGM-owned cessed properties. The MCGM has proposed to revise the calculation of capitalized value, computed on the basis of ready reckoner value, for redevelopment on municipal tenanted properties. Bureau Report – NMTV News.

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