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Municipal Finance

BDA eyes Rs. 3,500 crore from betterment fees

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The Hindu       21.04.2017 

BDA eyes Rs. 3,500 crore from betterment fees

Will target land notified but later dropped during formation of Arkavathi and Nadaprabhu Kempegowda Layouts

A cash-strapped Bangalore Development Authority (BDA) is leaving no stone unturned in its quest to mobilise revenue. Betterment fee seems to be the latest buzzword among officials.

On Tuesday, the BDA board decided to levy a betterment fee on the land initially notified but later dropped during the formation of Arkavathi and Nadaprabhu Kempegowda Layouts. This is expected to yield over Rs. 3,500 crore.

The move comes even as the authority is moving fast to regularise over 3,000 acres of encroached BDA-notified land through which it hopes to mop up over Rs. 4,000 crore. Chief Minister Siddaramaiah had made an announcement in this regard in the run-up to the 2015 BBMP polls. Now, BDA has put up a note before the State cabinet. In this case, the betterment fee is yet to be fixed.

Betterment fee


The BDA has identified 2,262 acres dropped during formation of Arkavathi Layout. It has fixed a betterment fee of Rs. 336/sqft, which will yield Rs. 3,310.69 crore. This covers areas that were de-notified and dropped during the re-do scheme in July 2014; the issue is mired in controversy and legal disputes.

It has identified 610 acres dropped during the formation of Nadaprabhu Kempegowda Layout due to de-notification and legal disputes, for which a betterment fee of Rs. 73.65/sqft has been fixed. This is expected to yield Rs. 195.69 crore.

A senior land acquisition officer said that the betterment fee was fixed based on a formula devised by the BDA: it is a third of the hike in guidance value of the land from the value when it was initially notified. The land owners need to pay BDA the betterment fee when they seek a No Objection Certificate for conversion of land use or apply for a development plan. BDA will conduct an on-ground survey of these areas to identify parcels already developed and issue demand notices for betterment fee.

 

Rs. 138.51 cr. annual fund for Kochi

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The Hidu        21.04.2017  

Rs. 138.51 cr. annual fund for Kochi

Award of Finance Commission is worth Rs. 49 crore

The Kochi Corporation will get an annual allocation of Rs. 138.51 crore from the State government for 2017-18 fiscal.

Of this, Rs. 49 crore will be allotted as general development fund and Rs. 81 crore as Special Component Plan fund. The award of the Finance Commission will come to Rs. 49 crore.

Road projects

Road protection fund projects will get Rs. 21 crore, while non-road projects will be allocated Rs. 10 crore, said a communication issued by Deputy Mayor T.J. Vinod.

A meeting of the corporation council, to be held on Friday, will discuss the draft proposals to be implemented by the civic body in the current financial year.

The projects that get the stamp of approval from the corporation council will be implemented in the city in 2017-18 fiscal.

 

City Corporation earns 'investment- worthy' rating By Express News Service | Published: 05th April 2017 12:55 AM | Last Updated: 05th April 2017 05:38 AM | A+A A- | Building, construction Image for represenational purpose| Reuters THIRUV

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The New Indian Express     05.04.2017

City Corporation earns 'investment- worthy' rating

Building, construction

THIRUVANANTHAPURAM: The City Corporation has been recognised as an investment-worthy urban local body in a credit rating process required for the implementation of the Central scheme Atal Mission for Rejuvenation and Urban Transformation (AMRUT). With the rating, the Corporation would be in a position to avail loans from multilateral agencies such as Asian Development Bank and World Bank for implementing mega projects.

Bengaluru-based private credit rating agency Brick Work Rating India has assigned ‘BWR BBB’ rating to the Corporation with a ‘stable’ outlook. This means the Corporation is considered to have moderate degree of safety regarding timely servicing of financial obligations and carries moderate credit risk.

The rating factors in the civic service delivery standards maintained by the civic body, the infrastructure in place, the revenue surplus position over the last six years, economic base, high literacy rate and progress made in implementing key reforms. The rating is considered to be a boost for the civic body which is competing for the Smart City project. Thiruvananthapuram and Kochi share the same rating and are only two among the nine cities under the AMRUT scheme to get investment grade rating. The ratings starting from BWR AAA to BBB are considered to be investment grade.  

AMRUT scheme aims at providing basic services (water  supply, sewerage and urban transport) to households and  building amenities in cities which will improve the quality of life. The total outlay of AMRUT mission for the state from 2015 to 2020 is Rs 2,333.92 crore.


However, the rating agency has been critical of the Corporation in terms of its increasing dependence on Central and state government grants, low overall tax collection efficiency, inadequate managerial and technical capacity and limited resource mobilisation strategies. The AMRUT scheme remains a non-starter in the Corporation due to various reasons. “The scheme requires a consultant to monitor the projects. But the state high-powered steering committee is yet to decide on one. The delay makes it difficult to start projects such as multi-level parking, foot overbridges etc which were mentioned in last year’s budget,” said an officer.

 
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