BMC discards plan to give credit notes to contractors
Real Estate

BMC discards plan to give credit notes to contractors

The Brihanmumbai Municipal Corporation (BMC) has discarded its plan to give out credit notes instead of money to the contractors for constructing 12,000 housing units of Rs 9,000 crore for project-affected persons (PAPs).

BMC will build only 4,000 housing units in Chandivali via cashless means for about Rs 2,500 crore.

The 4,000 PAP units constructed through credit notes and Transfer of Development Rights (TDR) have been placed before the committee of the municipal corporation for approval. The developers can utilise the credit notes to pay municipal taxes and premiums to BMC or can also sell the credit notes to other developers.

According to an official, the corporation has received applications for PAP units, and it will conduct a detailed analysis by verifying the agreement value in zones from the inspector general of the registration and stamps department and found out that the rates were feasible only for one zone in Chandivali.

The credit notes value is Rs 1,584 crore, land TDR Rs 295 crore and construction TDR Rs 619 crore. Every PAP unit of 27.9 sq metres will cost BMC over Rs 60 lakh. BMC's total savings will be nearly Rs 178 crore, compared to the market rates. For the ongoing infrastructure projects, BMC needs 36,000 PAP units, said the official.

In March, BMC decided to go cashless for a Rs 9,000 crore mega project for housing construction for PAPs. From the total amount, Rs 6,000 crore was paid via credit notes, while the remaining was TDR. According to the plan, landowners with reserved land for PAPs or housing can offer their land to BMC.

The owners will also have to construct it for BMC. The corporation will house people affected through infrastructure projects such as roads, flyover and bridges construction, laying of drains, among others.

The opposition party alleged that the plan would turn into a scam when developers start paying through credit notes when the corporation is facing a financial crunch.

Image Source

The Brihanmumbai Municipal Corporation (BMC) has discarded its plan to give out credit notes instead of money to the contractors for constructing 12,000 housing units of Rs 9,000 crore for project-affected persons (PAPs). BMC will build only 4,000 housing units in Chandivali via cashless means for about Rs 2,500 crore. The 4,000 PAP units constructed through credit notes and Transfer of Development Rights (TDR) have been placed before the committee of the municipal corporation for approval. The developers can utilise the credit notes to pay municipal taxes and premiums to BMC or can also sell the credit notes to other developers. According to an official, the corporation has received applications for PAP units, and it will conduct a detailed analysis by verifying the agreement value in zones from the inspector general of the registration and stamps department and found out that the rates were feasible only for one zone in Chandivali. The credit notes value is Rs 1,584 crore, land TDR Rs 295 crore and construction TDR Rs 619 crore. Every PAP unit of 27.9 sq metres will cost BMC over Rs 60 lakh. BMC's total savings will be nearly Rs 178 crore, compared to the market rates. For the ongoing infrastructure projects, BMC needs 36,000 PAP units, said the official. In March, BMC decided to go cashless for a Rs 9,000 crore mega project for housing construction for PAPs. From the total amount, Rs 6,000 crore was paid via credit notes, while the remaining was TDR. According to the plan, landowners with reserved land for PAPs or housing can offer their land to BMC. The owners will also have to construct it for BMC. The corporation will house people affected through infrastructure projects such as roads, flyover and bridges construction, laying of drains, among others. The opposition party alleged that the plan would turn into a scam when developers start paying through credit notes when the corporation is facing a financial crunch. Image Source

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?