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Pune Municipal Corporation to monetise its land bank to get more income
Municipal Commissioner Saurabh Rao said, “PMC has enough land bank including grounds and various reserved places. If these lands would be leased out or developed on commercial basis on the lines of Mumbai Metropolitan Region Development Authority (MMRDA) and Pune Metropolitan Region Development Authority (PMRDA) it would help to get more revenue. The civic body will increase it’s revenue by renting out these lands.”
The revenue generation of Pune Municipal Corporation (PMC) has been falling short . Thus, in order to generate more revenue the PMC will monetise it’s land bank.
Municipal Commissioner Saurabh Rao said, “PMC has enough land bank including grounds and various reserved places. If these lands would be leased out or developed on commercial basis on the lines of Mumbai Metropolitan Region Development Authority (MMRDA) and Pune Metropolitan Region Development Authority (PMRDA) it would help to get more revenue. The civic body will increase it’s revenue by renting out these lands.”
The commissioner further stated, “The traditional approach of the PMC to collect more taxes is the major source of income for the civic body. This traditional approach would continue, however it is not enough considering the various projects proposed by the civic body. Thus to generate revenue other than its traditional approach, the civic body needs to tap more revenue sources. One of the options is to utilise its land bank effectively.
According to the officials the PMC is getting less revenue from the last few years and all the departments are not able to achieve their revenue target. Even in the ongoing financial year, PMC will short fall of Rs 2,000 crore than the targeted amount.
The PMC’s annual budget for the year 2018-19 is Rs 5,870 crore. Though three months are remaining for the financial year to end, the primary figures show that the PMC will only get Rs 4,000 crore as revenue.
The commissioner accepted that PMC is not meeting it’s revenue target for 2018-19. Till December 2018, PMC was able to get only Rs 3,054 crore revenue which is far less than their target of Rs 5,870 crore. The officials also accepted that it is not possible to achieve the target in the remaining three months of the financial year.
