Pune: Pune Metropolitan Regional Development Authority (PMRDA) Commissioner Kiran Gitte said the development authority will try to find ways of generating revenue to improve their credit rating and achieve financial independence.
Gitte highlighted the example of Mumbai Metropolitan Regional Development Authority (MMRDA) and said that MMRDA has set a good example of having a good financial model which helped them in improving their credit rating.
The State government recently approved a budget of Rs 2,591 crore for the development work of the PMRDA.
Of this Rs 1,235 crore has been approved for ring road project and Rs 888 crore for the Hinjawadi-Shivajinagar metro project.
Besides this, Rs 1,152 crore for Mahalunge-Maan Township, Rs 99 crore for construction of roads and bridges in PMR region, Rs 25 crore for Wagholi water supply, Rs 50 crore for fire brigade services in PMR region have been allocated.
While the ring road project is expected to cost Rs 13,315 crore, the metro would cost Rs 8,313 crore which creates a fund requirement of Rs 21,628 crore for both the projects. As Rs 1,300 crore was approved by the Centre as part of viability gap funding for Hinjawadi-Shivajinagar metro it will help PMRDA in the initial stage of the project, thus delaying the need to raise funds from external agencies for the project.
PMRDA has planned to raise Rs 8,000 crore from external agencies and good credit rating will help in raising funds for the project.
Similarly to manage development of ring road, PMRDA was able to generate funds through land monetisation. Former Town planner Ramchandra Gohad said that PMRDA has done excellent work in bringing town planning scheme (TPS) into the picture.
The PMRDA is working on 20 TPS near proposed ring road project. “PMRDA can generate revenue through land monetisation, housing schemes and other ways which will improve their credit rating,” added Gohad.