Pune: The Pune Municipal Corporation (PMC) has decided to use credit bond concept to reduce land acquisition cost for several projects.
Municipal Commissioner Saurabh Rao has introduced the concept in the recent draft PMC Budget 2019 of Rs 6,085 crore.
Rao said, “The PMC wants funds to acquire land for development projects. It does not have enough money to give compensation to landowners during acquisition of lands. So, we are going to use credit bond concept to acquire land from land owners. In High Capacity Mass Transit Route (HCMTR) project, we want to use credit bond concept.”
Under this concept, at the time of acquisition, a credit note is issued in the form of bond of double the amount of the price of the land as per the Ready Reckoner.
According to the revised Land Acquisition Act, cash compensation is calculated as twice the amount of market value. The bond can be redeemed for payment of development fee, premium FSI or any other tax collected by the civic body. The bond is transferable.
Earlier, the PMC used to give Transferable Development Rights (TDR) or cash against acquisition of land for civic facilities.
Many proposals are pending as it takes time to issue TDR. Also, the PMC does not have ability to pay in cash.
Considering these difficulties, the State Government has formed a committee headed by then Divisional Commissioner S Chokkalingam, Municipal Commissioner Kunal Kumar and Joint Director of Town Planning Prakash Bhukte to find a solution.
The committee suggested the PMC should give reservation credit bond in exchange for land acquisition. The government accepted this concept.
It has been included in the Development Control Manual (DC Rules) approved in 2017. Therefore, the PMC decided to implement this policy.