Bhopal metro project opens door to hike in FAR, property rates
Start of metro rail work would unlock the value of thousands of property owners falling in proximity to the project, as the government could increase the FAR.
Down market property prices from MP Nagar to New Market are to benefit.
In a first for any metro rail development project in India, utilization of extra FAR and value capturing finance shall be an integral component of the business plan for a metro rail project in Bhopal and Indore, said urban development and housing development principal secretary and MPMRCL managing director Vivek Agarwal, on Monday.
“Nature and scope for property development shall essentially include transit-oriented development (TOD) and PPP based real estate development,” he said. The Union government and state government would contribute 40% of the project cost. 60% of the project is through financial assistance from European investment Bank and Asian development bank for Bhopal and Indore respectively.
By allowing increased FAR in areas through which metro rail project would pass, MPMRCL hopes to raise about Rs 7,000 crore – the amount equal to loan.
The project would be a first after setup of Unified Metropolitan Transport Authority (UMTA) integrating the metro, bus and other transport modes. “Revenue raised through utilisation of extra FAR and value capturing finance would be utilised for metro rail construction,” he added.
About 10% to 15% of the project could be funded through PPP. First phase of the project would be 27.81 km in Bhopal, improving connectivity along two routes. One line would connect Karond to AIIMS and the other route would be from Bhadbhada to Ratnagiri trisection.
New Union government metro policy, mandates PPP component for getting Union government assistance. Policy seeks to ensure focus on a catchment area of five kms. New policy also mandates transit oriented development.