Pune Municipal Corporation Expands Credit Note Usage for Developers
Enhanced Payment Flexibility for Developers in Pune
The Pune Municipal Corporation (PMC) has announced an extension of its credit note scheme, allowing developers to utilize these notes for a broader range of payments. This move follows the approval of the proposal by the standing committee.
Expanded Payment Options
Effective immediately, developers can use the credit notes to settle:
- Property Taxes
- Sky Sign Department Tax
- Water Taxes
- Road Digging Charges
- In addition to the initial allowance for Building Permits and associated charges (development fees, building permit fees, and surcharges)
Background on the Initiative
Launched in January, the credit note system was designed to facilitate public-private partnerships for road and bridge construction in areas such as Hadapsar, Kharadi, and Mundhwa. Given the revenue shortfall due to the pandemic, the PMC opted for this innovative approach, enabling roads to be built without immediate cash outlays.
Developer Eligibility and Benefits
To be eligible for these credit notes, developers must possess at least 80% of the land required for the project, which can be acquired from private landowners using FSI (Floor Space Index) or TDR (Transfer of Development Rights). The PMC issues these notes in stages, aligned with the progress of the road works, with an estimated annual expenditure of approximately Rs 200 crore via this mechanism.
Insights from Key Figures
- Hemant Rasane, Chairman of the Standing Committee, emphasized the necessity of exploring alternative income sources for the civic body, highlighting the potential of credit notes in boosting development projects.
- BJP Corporator Mahesh Wable, who proposed the supplementary note, underscored the importance of diversifying payment modes through credit notes to encourage developer participation and enhance policy response.