Builders in Pune can use credit notes for wider payments-PMC

These notes can now be used to make payments of property tax, sky sign department tax, road digging charges and water charges.

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CREDIT NOTE

 The Pune Municipal Corporation (PMC) has decided to extend the utility of credit notes offered to developers after the standing committee approved the proposal.These notes can now be used to make payments of property tax, sky sign department tax, road digging charges and water charges.

The civic body had allowed credit notes only for building permissions when they were first approved in January. These notes are given to contractors for construction of the roads on public-private partnership basis. Roads are built without giving cash to the developers as the Pune Municipal Corporation has lost much revenue in the pandemic.

“Income sources are limited now for the civic body. We have to find options like credit notes. They are the need of the hour for development projects,” Hemant Rasane, chairman of the standing committee, said.

The PMC had planned to allow redemption of these credit notes only for the building permissions charges.

“If we want more developers to come forward, we must allow different types of payment via credit notes. It helps in gaining a good response to the policy,” BJP corporator Mahesh Wable, who gave the supplementary note, said.

The PMC has planned to develop roads and bridges on the lines of public-private partnership. Under this initiative, credit certificates will be given for development of facilities. These certificates can be used by developers for paying a number of charges pertaining to building permissions such as development charges, building permission fees and premium charges.

If land is not available with the PMC already, developers will have to take it from the private landowners using TDR or FSI. At least 80% land should be in the possession of the developers for allocation of these notes.

Roads and bridges proposed to be built through this initiative are in Hadapsar, Kharadi and Mundhwa areas.

The PMC has proposed that credit notes be given in phases based on the progress of the road works. The developers will be able to put to use credit notes up to Rs 200 crore per year through these credit notes.