BMC eyes revenue boost through land, tax, and policy reforms

While the Brihanmumbai Municipal Corporation BMC is managing projects worth over Rs 2 lakh crore civic chief Bhushan Gagrani has outlined various strategies to increase revenue in the latest budget estimateAdditional FSI premiumThe BMC had requested the state government to issue a directive ensuring that 50 per cent of the premium for additional Floor Space Index FSI is allocated to the civic body Currently the premium is equally shared between the BMC state government Maharashtra State Road Development Corporation MSRDC and the Dharavi Redevelopment Authority DRAldquoAs the DRA has now started operations we demanded our sharerdquo said Gagrani The State Government has sanctioned a 50 per cent share of the premium leading to an additional revenue of Rs 70 crore for the BMC so far This figure is expected to reach R300 crore in the 202526 financial yearVacant land tenancy policyThe BMCrsquos Estate Department has finalised a policy to develop vacant lands and those under VLT for public purposes allowing conversion into lease wherever possibleThis policy will facilitate the development of such lands while generating an estimated R2000 crore in revenue through a onetime premium and annual ground rent over the next four years Additionally BMC will receive revenue from water tax property tax and other charges once these plots are developedTransport commercial hubsThe BMC has appointed a contractor to develop a transport and commercial hub at Dahisar Octroi Naka Similar projects are being planned in Mankhurd Airoli and Mulund to generate additional revenueAt Dahisar a starcategory hotel with 131 rooms parking for 456 passenger buses and 1424 motor vehicles has been proposed This project will not place any financial burden on BMC but will create a new source of incomeCommercial units in slumsMumbai has around 25 lakh slums with at least 50000 20 per cent being used for commercial purposes such as shops godowns small industries and hotels The BMC has decided to levy property tax on these commercial slums expecting to generate Rs 350 crore in revenueAdditionally the civic body is considering charging commercial rates for water supply to these establishments in the futureHoarding policyA new hoarding policy is under consideration The BMC plans to generate revenue through advertisements by offering BMCowned and other designated sites for advertising via etendering and auctions This will help increase earnings through rent property tax and advertisement feesTrade licence feesA proposal to increase renewal fees for trade licences under Section 394 is in progress and will be finalised soonEntertainment taxfeeThe current exemption on entertainment tax is valid until September 2026 The BMC is actively engaging with the state government to allow the resumption of tax collection once the exemption period endsPending duesThe BMC is owed a substantial amount by various state government departments for property tax water supply and sewage charges Efforts are being made to recover these dues or adjust them against payments owed by the BMC to the state government Currently pending dues amount to R9750 croreAuction of plots on leaseTo generate revenue from its land assets the BMC has decided to auction its plots based on 100 per cent of the Annual Statement of Rates ASR The first such auction will be for a plot at the asphalt plant in Worli which will be leased out for development by private players