E-Paper
PMC to acquire land for road-widening projects via credit bond
PUNE: As land acquisition is proving to be a major hurdle in the completion of road-widening projects such as Katraj to Kondhwa and Shivane to Kharadi with land owners asking for cash compensation, the Pune Municipal Corporation (PMC) is planning to introduce credit bonds (reverse convertible bonds) to take the project forward
PUNE: As land acquisition is proving to be a major hurdle in the completion of road-widening projects such as Katraj to Kondhwa and Shivane to Kharadi with land owners asking for cash compensation, the Pune Municipal Corporation (PMC) is planning to introduce credit bonds (reverse convertible bonds) to take the project forward.
Initially, TDR (transferable development rights) and FSI (floor space index) was offered to the land owners as compensation but they rejected the same in favour of cash. The cash-strapped PMC could ill afford this as cash compensation for the Katraj to Kondhwa road-widening project alone would have cost it a whopping Rs700 crore. Besides, costs have been further escalating due to delays in project completion. The civic body has already missed the original September deadline for widening of the Katraj to Kondhwa road on account of land acquisition.
Vikram Kumar, municipal commissioner, said, “It has become a tough task to complete a big project with cash compensation, so we plan to use credit bonds. These can be given to people whose land falls under the project instead of cash.”
Credit certificates will now be issued to land owners which can be used while paying tax returns to the PMC.
“Once the proposal is approved by the standing committee, the PMC plans to use credit bonds in other major projects as well. Credit bonds seem the most feasible option right now for fast-tracking development projects,” said a corporation official on the condition of anonymity.
The widening of the 17km Shivane to Kharadi road was proposed in 2016 and it was originally scheduled for completion in 2018. Nearly three years past the original deadline however and the project is still incomplete.
