DMRC propose rise in tax
With the Delhi Metro Rail Corporation Limited submitting its ‘supplement to DPR’ (detailed project report), of the proposed light metros for Thiruvananthapuram and Kozhikode, the implementing cities now will debate how the people along the proposed alignment, who will be benefitted by the project, could support funding for the project.
The DMRC has submitted the ‘supplement’ to the state government with an increase in project estimate to Rs 7446 crore, for administrative sanction.
As per the new metro policy, transit oriented development (TOD) and value capture finance (VCF) as suggested as measures to enhance revenue and thus reducing the burden on the government.
Under value capture finance, the DMRC has proposed a 50% hike in the property tax for individuals who will enjoy a manifold increase in price value of their property due to its proximity to the alignment. If government approves this suggestion, there will be 50% increase in property tax for land within 500 metres on either sides of alignment.
The new metro policy also suggests to ‘densify’ areas around metro stations and thus DMRC has proposed to increase the floor area ration in areas near metro alignment from 2.5 to 4. The metro policy suggests bringing more residential and commercial buildings along alignment to reduce travel distance and improve connectivity.
One of the major features of the new metro policy was it support for private participation for the project. “Private participation either for complete provisioning of metro rail or for some unbundled components will form an essential requirement for all metro rail project proposals seeking central financial assistance,” says the policy.