CRISIL to tap revenue for Nagpur Municipal Corporation
The standing committee, headed by Sandip Jadhav, has approved a proposal to appoint private firm Crisil to study and prepare a report on tapping source of revenues through Value Capture Financing (VCF) for the ambitious Smart City project in Nagpur. The ministry of urban development had allowed the Nagpur Municipal Corporation to tap new source of revenue to meet financial requirements for the project.
The estimated cost of Smart City project is Rs. 3,577.77 crore. Central and state governments share is Rs. 500 crore and Rs250 crore respectively, while Nagpur Improvement Trust will bear NMC’s share of Rs. 250 crore.
So for the remaining cost, the NMC will pay Rs. 63 lakh to Crisil to prepare a report on how the civic body can raise funds either from land value tax, fee for changing land use, betterment levy, premium on relaxation of floor space index and floor area ratio, vacant land tax, tax increment financing, zoning relaxation for land acquisition or land pooling system.