The Mumbai Metropolitan Region Development Authority (MMRDA) has proposed a new charge on new residential and commercial buildings coming up near Metro 7 line.
For the first time ever, the MMRDA has sent a proposal to the urban development department suggesting that a transit-oriented development (TOD) charge be levied on all new residential and commercial buildings coming up within a 200-metre radius of the Gundavali-Dahisar East Metro 7 line.
The proposal was also discussed at a recently held MMRDA meeting chaired by chief minister Eknath Shinde.
The charges, known as TOD charges, are still being finalised but are expected to be in the range of INR 1,000 to 2,000 per sq metre.
The MMRDA exclaimed that the TOD fee is necessary to help with the construction and maintenance of the Metro 7 line, as well as to support other developments in the area. The authority also argues that the fee is justified, as developers benefit from increased value of their properties due to the proximity of the metro line.
If this proposal gets a go-ahead, it can then be replicated in other mass transit projects which could fetch ₹10,000 crores to the MMRDA, officials said.
However, developers have criticised the TOD fee, arguing that it is an additional burden that will make it more difficult to build affordable housing in the area. They also argue that the MMRDA has not done enough to justify the need for the fee requirement.
The MMRDA has said that it is open to considering alternative proposals for funding the Metro 7 line, but has not announced any specific plan yet. It is possible that TOD charges may be implemented in a phased manner with rates increasing over time.
If reports are to be believed, top developers such as Godrej Properties, Adani Realty, and Shapoorji Pallonji have constructed or proposed multi-storied buildings along the WEH and Metro 7.
Metro 7 has been constructed on the Western Express Highway (WEH). Data released by Knight Frank India showed that the property registrations in western suburbs jumped from 51% in April 2022 when the phase 1 of the two Metro lines (2A and 7) began, to 58% in May 2023.
Share
Tweet
