Maharashtra Metro real estate development plans get a boost | The Financial Express

Maharashtra Metro real estate development plans get a boost

MahaMetro has already received the SPA status for the Nagpur Metro project, where commercial development of land has commenced.

Maharashtra Metro real estate development plans get a boost
Real estate development accounts for a significant part of the non-fare box revenues projected for Pune Metro.

The Maharashtra Metro Rail Corporation (MahaMetro) has been given the 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 development of Metro-owned lands without 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 million 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 million 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 million sq ft),  Civil Court (1.92 million sq ft), Range Hills (3.4 million sq ft) and Hill View Vanaz (2.2 million sq. ft).Even before, MahaMetro projects can take off, new private real estate developers have come up near Metro stations.

Also Read: Mumbai Metro: Tender for construction work of Metro Line 5 Depot in Thane; to cost over Rs 472 cr

Gera Developments’ Imperium Gateway is a two million sq. ft project on a 12-acre plot acquired for Rs 160 crore in Kasarwadi along the Mumbai-Pune Road, located next to the Kasarwadi metro station. The Kohinoor Group has developed the Rs 2,100 crore 1.8 million sq. ft. Kohinoor World Towers project in the Pimpri Chinchwad area with the first tower sold out. Kohinoor acquired this nine-acre land parcel for Rs 200 crore.

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 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.

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First published on: 29-10-2022 at 07:37:21 am
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