Nagpur SPV
Img : metrorailnews

The SPV i.e. the special purpose vehicle and Nagpur Smart and Sustainable City Development Corporation Limited [NSSCDCL] seek approximately 75% of the Smart City project cost, i.e. Rs2,427 crore, from plot owners in the city. However, this is contrary to the announcement of going for land pooling method.

Apart from more than 30% plot owners in Pardi, Bharatwada, Bhandewadi and Punapur in East Nagpur others are likely to lose 40% of their total plot area that too without any compensation.

The dream project of the Union Government in association with the State Government need 1,743 acres land and as per the data of Nagpur Smart and Sustainable City Development Corporation Limited [NSSCDCL] Rs.3,303 crore is the estimated cost of the project.

All three including Central Government, State and NIT [Nagpur Improvement Trust] will contribute Rs.876 crore and the remaining cost is to be recovered from the citizen. The plot owners will also require to pay a premium for availing extra floor space index (FSI). At present, basic FSI for the residential category is 1 and 2.5 for commercial.

For this project, the Government also allowed FSI up to 4 and the plot owners will have to pay a premium of 30% of the ready reckoner value for extra FSI.

The Special Purpose Vehicle will also generate revenue by selling some part of land that has to be acquired from plot owners either by carving out plots or constructing a flat scheme. Under this way, the SPV has estimated a revenue of Rs2,427 crore.

East Nagpur MLA Khopde said that a decision will be taken after the arbitrator completes the process as the objections raised by the plot owners are being registered. The Government will take a final decision once the arbitrator submits its report to the Government.