Thane Municipal Corporation’s revenue plunges 60% due to absence of new construction proposals
The apparent absence of new construction proposals has resulted in a 60 percent plunge in the revenue of the city development department of the Thane Municipal Corporation (TMC).
Realty developers are shying away from new construction plans in Thane largely because of the civic body’s proposal to link transferable development rights (TDR) with ready reckoner rates. With TDR having been linked to ready reckoner rates, developers cannot make the massive profits which they previously used to make from new constructions in Thane.
Noting that the civic body’s proposal has seemingly dampened the spirits of the developers with regard to constructions in Thane, a civic official said – prior to the mentioned proposal – the developers mostly purchased or generated TDR from areas that had low rates and subsequently used it for loading on buildings being constructed in areas in which property rates were high.
The official further elaborated that the TMC was forced to make changes to the 1991-launched TDR policy because a section of developers started misusing the system.
However, with the TMC now having linked the development rights to ready reckoner rates, a number of builders in Thane have put their construction plans on a backburner; thus resulting in a loss of revenue for the corporation.
Source – The Times of India
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