At a time when Maharashtra government had lowered stamp duty for a period between September and December to help realty sector battered by the Covid lockdown, development charges in metro region under NMRDA have been increased from 8% to 10%. This hike is likely to increase cost of housing projects in the metro region.
Meanwhile, chief minister Uddhav Thackeray on Thursday cleared Nagpur Metropolitan Region Development Authority (NMRDA) budget 2020-21, having an outlay of Rs1,205 crore, which was stalled due to outbreak of Coronavirus pandemic.
Though the budget outlay has been reduced compared to last year, development charges levied by NMRDA for various projects implemented by builders have been increased by 2%. It is being speculated that NMRDA’s hike in development charges will increase the cost of housing projects in the metro region.
The state government had in November reduced the stamp duty, levied when relevant documents are registered in the state, to help real estate sector overcome the slowdown.
The authority not only develops the metro region, but also will continue Nagpur Improvement Trust’s major ongoing projects.
Due to Covid lockdown, NMRDA’s budget had got delayed by almost nine months. Generally, NMRDA presents its budget before the state government in March every year. As a development authority, NMRDA had carried out several works and had to fund other ongoing projects.
The CM, who is also chairman of NMRDA, has directed the urban development ministry to approve Rs186 crore NMRDA’s expenditure incurred between April 1, 2020 and till date on various works.
NMRDA commissioner Sheetal Ugale-Teli was present at the budget meeting held in Mumbai. The NMRDA budget was to be presented to the CM on March 13 this year. However, due to the outbreak of Covid pandemic, the budget could not be presented then. Due to lack of budget allocations, NMRDA could not carry out several projects. Now, ongoing and new projects will be taken up, said Teli.
Major ongoing projects include construction of 4,325 houses under Pradhan Mantri Awas Yojana (PMAY), development of Koradi temple, development of Tajbagh dargah, police housing project etc.
After the formation of NMRDA, the then chief minister Devendra Fadnavis had approved the first budget of Rs1,760 crore for 2018-19. A budget of Rs 1,529 crore for 2019-20 was sanctioned for various development works of NMRDA. This year’s budgetary demands were also said to be in the range of Rs 1,500 crore and NMRDA had submitted a similar proposal. However, after curtailing some of the development expenditures, the budget of Rs 1,205 crore has finally been approved