Despite sluggish realty market, Thane reaps bountiful revenue

Defying all talks of a slowdown, the realty market in the lake city has registered the highest jump in revenue. The corporation’s coffers this fiscal stands at a nearly Rs 400 crore surplus compared to the last year.

A glance at the earnings of the corporation revealed that various service fees charged by the town planning department, including issuing occupation certificates, levying development charges and introduction of the incentive FSI, collectively contributed to nearly Rs 500 crore to the kitty.

This is nearly Rs 250 crore more than what the department had earned last year, show civic records. The revised target for the department was Rs 460 crore.

Civic commissioner Sanjeev Jaiswal seems to have brought in some financial stability as the TMC now has enough funds to finance few of its projects in the next financial year.

Records show that the town planning department has swapped places with last year’s highest grosser the LBT department and contributed the lion’s share to the civic kitty. The Public Works Department (PWD) comes third by adding Rs 128 crore.

“The large number of big ticket real estate projects has caused a frenzy in the city. The revenue would have been more if the proposed 100% rise in development charges was approved this year,” an official said.

Meanwhile, the PWD that gets its major earning by allowing agencies to dig roads and charging a lease fee for allowing cables to be laid across the city has also shown a jump in revenue.

It has added around Rs 33 crore more to the treasury this year compared to the last fiscal. “Utility agencies that require digging of roads have to pay a premium to the corporation in addition to a royalty for laying their respective utility services. A majority of the roads were dug up by telecom agencies for laying 4G lines this year,” a civic official said.

Meanwhile, the administration is hopeful of intensifying the tax collection drives and shoring in a few more crores by the end of the fortnight. “I have set a target of Rs 355 crore for the property department and Rs 120 crore in water tax collection by the end of this fiscal,” Jaiswal said.

Credits ET Realty


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