MahaMetro Given Special Planning Authority Status by State Government

BY Realty+

The Maharashtra Metro Rail Corporation (MahaMetro) has been given special planning authority status by the Maharashtra government, which would give it control over the development of land along the Metro Rail alignment in Pune and generate its own revenues. 

MahaMetro has already received the SPA status for the Nagpur Metro project, where commercial development of land has commenced. Real estate development accounts for a significant part of the non-fare box revenues projected for Pune Metro. 

This would improve the financial viability of the 33-km 11,420 crore Pune Metro project that is expected to start operations in December. “MahaMetro can plan the development of Metro-owned lands without the approval of the Pune Municipal Corporation. We do not have to approach PMC for plan sanction, commencement, and completion certificate,” Hemant Sonawane, Executive Director, MahaMetro said. 

Land connected with metro rail projects would include metro rail alignment, station buildings, control centres, car depot, commercial/ residential buildings, and property development. MahaMetro officials have stressed the need to grow non-fare box revenues as fares would not be adequate to run operations of the metro and service debt simultaneously. They have set a target of 50-60% share from non-fare revenues.

Two lines of the MahaMetro rail project pass through prime locations in the heart of Pune and Pimpri Chinchwad MahaMetro has drawn up plans to develop 10 mn sq. ft. of commercial space at the main stations at Shivaji Nagar, Civil Court, Swargate, and Kothrud. The real estate development would be done in a PPP mode with revenue share agreements. 

MahaMetro’s 9.54 mn sq. ft of commercial space development plans along the Metro corridor will see real estate projects coming up at Metro stations in Swargate (1.99 mn sq ft), Civil Court (1.92 mn sq ft), Range Hills (3.4 mn sq ft) and Hill View Vanaz (2.2 mn sq. ft). Even before, MahaMetro projects can take off, new private real estate developers have come up near Metro stations.

The Maharashtra state government began levying 1% property cess on the stamp duty on the purchase of property from April 1 to fund the Pune Metro. Apart from the cess on stamp duty, Maha Metro’s non-fare box revenue is expected to come from transit-oriented development, property business spaces within metro stations, property development on stand-alone plots, co-branding rights of metro stations, train wrapping advertisement, connectivity to metro stations, offering premises and train for group Tours, pre-wedding photo shoot, shooting of films, commercials, and birthday parties.

Tags : Maharashtra Metro Rail Corporation planning Maharashtra government Hemant Sonawane Executive Director MahaMetro