The Pune Municipal Corporation (PMC) may allow developers and builders to pay development charges and premium fees in instalments to ease fund crunch in the sector.
A proposal to this effect has been tabled before the standing committee and is expected to be discussed on Tuesday.
As per the proposal, developers and builders will be allowed to pay the charges in three or four instalments for projects with more than Rs 50 lakh fees.
The buildings with 70 metres or more height can pay the fees in three instalments of 33%, 33% and 34%. Developers of smaller buildings can pay the charges in four instalments of 25% each. The payments can be done over a period of two and three years, respectively.
The instalments will be allowed with 8.5% interest. If the payment of installation is delayed, 18% interest will be charged in fine. “The proposal aims at reviving construction activity. It has seen a lull in the last couple of months due to the lockdown. The PMC has allowed construction as per the norms of the Union and state governments for Unlock 1 phase,” a senior PMC official said.
On an average, around 4,500 building permissions are given annually, for which PMC earns around Rs 700 crore.
Manish Jain, vice-president, Credai Pune Metro, said, “Basically premiums are a large part of developers’ cost. Due to Covid-19, banks and customers are not releasing funds, due to which there are cash flow constraints. The deferment of payment will help ease the situation. Also, the corporation will get committed cash flow.”
Development premiums range between Rs150 to 350 per sqft on saleable area.
Shravan Hardikar, PimpriChinchwad municipal commissioner, said they had allowed a similar concession.