BMC taking one percent deposit of the project cost from developers
Real estate developers have to deposit one per cent of the project cost to Bhubaneswar Municipal Corporation (BMC) in advance so that the civic body may build infrastructure such as drains, streetlights and roads.
Such deposit would be mandatory for obtaining building plan approval from the Bhubaneswar Development Authority (BDA) without which construction work can’t start. Irked real estate developers said the BMC move was retrograde and would seriously impact apartment plans.
According to the minutes of a meeting of the BMC general body on July 31, circulated among developers last week, the developers have to deposit one per cent of the total project cost and expenses to be incurred by BMC for infrastructure development for the proposed multi-storied structures (stilt+3) in advance.
The BMC has taken this step in order to gather some revenues. This would also help in the development work as well as see to the fact that the revenues are collected which can also be used in further work. A lot of development activities are to happen in the city of Bhubaneswar. This might take some time though.
Source: The Times of India
BDA, Bhubaneswar Development Authority, BMC, Multi-storied buildings, Multi-storied structures, real estate builders, Real Estate builders in India
