NMRC: Impose tax on builders along Noida-Greater Noida metro route
The NMRC said it has asked Noida and Greater Noida officials to raise funds from builders along the Metro linkUpdated: Oct 21, 2016 09:10 IST
The Noida Metro Rail Corporation (NMRC) on Thursday said that it has asked Noida and Greater Noida officials to impose a tax on buildings and raise funds from builders buying floor area ratio (FAR) along the under-construction 30km-long Noida-Greater Noida Metro link.
Santosh Yadav, the managing director of NMRC, said, “In 2013, the two authorities had approved a policy under which they had planned to impose a certain amount of tax on builders who are constructing projects along Noida-Greater Noida Metro route. They had also planned to sell additional FAR to raise Dedicated Urban Transport Fund for Metro project. The authorities are yet to implement it. Therefore, I, through my letter, reminded them to execute the same so that Metro projects have adequate funds.”
The plan envisaged mobilising resources to fund the Noida-Greater Noida track and future phases of the Metro besides funding NMRC, the special purpose vehicle (SPV) of Noida and Greater Noida authorities, set up in 2014 for undertaking the construction of Metro rail corridors.
NMRC said that the communication was made in an attempt “to keep the Noida-Greater Noida Metro on track and in future have its operations run smoothly.”
Yadav said, “The aim is to remind the authorities to follow and implement the plan so that the project does not encounter any roadblocks. Also, the idea to impose a tax on special projects sold by the authorities along the Metro corridor as these could yield good proceeds.”
In 2013, Noida had planned to identify a special corridor along the Metro route on a 500m stretch for which tax was to be imposed.
FAR means a builder will be allowed to build additional floor and cover more ground after charging a certain fee.
An official explained, “For example, in a 500m special Metro zone, if a builder wants to purchase FAR, then he will have to pay a certain amount, for example, Rs. 100 per square metre. Also, there will be a tax of Rs. 500 per square metre,” said another official.
According to officials, easing of coverage and height restrictions that would allow building properties with enhanced FAR of 0.5 was proposed in a joint board meeting of the three development authorities of Noida, Greater Noida and Yamuna Expressway areas in May 2013.
A 500m zone in Noida and 1,000m zone in Greater Noida were set apart for carving out a mix of residential, commercial and public utilities along the Metro corridor.
The proceeds from both provisions were to be deposited into an account created for the purpose — Dedicated Urban Transport Fund.
An initial corpus of Rs. 500 crore was to be pumped in by both the authorities. “We have collected about Rs. 53 crore from selling additional FAR. This money will be used to fund the corridor,” said SC Gaur, chief architect planner, Noida Authority.
Officials, however, said that the provision for collecting cost was yet to be implemented.