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State demands 1/3 share of BMC income from fungible FSI

Municipal commissioner Ajoy Mehta mentioned the state's decision while reading out the budget on Wednesday. Mehta informed that the state sent a letter to BMC on October 20, 2015, demanding that the civic body share its revenue. Mehta also pointed out that it would affect BMC's income.

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The Bharatiya Janata Party-(BJP) led state government seems to have increased its interference in the Shiv Sena-led Brihanmumbai Municipal Corporation's (BMC) functioning. Even as the BMC faces the prospect of a cash crunch, the government has demanded it to part with one-third of its income from the premium on fungible floor-space index (FSI).

Municipal commissioner Ajoy Mehta mentioned the state's decision while reading out the budget on Wednesday. Mehta informed that the state sent a letter to BMC on October 20, 2015, demanding that the civic body share its revenue. Mehta also pointed out that it would affect BMC's income.

Charging premium on fungible FSI was the then commissioner Subodh Kumar's idea, who had proposed it in the Budget 2010-11. The fund was BMC's kitty for coastal roads project. BMC had projected Rs1,914 crore for 2015-16. The civic body, however, faced losses and received only Rs1,442.35 crore. But it managed to receive Rs217.40 crore as premium on fungible FSI from the Slum Rehabilitation Authority (SRA), which added to its revenue.

A senior civic official pointed out that the state government is already charging 6 per cent stamp duty from developers for each project. The share that the state government is asking for is unjustified, but the civic administration has no choice but to agree to it, he added on the condition of anonymity.

The BJP-led state government has been constantly interfering in BMC's functioning. Chief minister Devendra Fadnavis has taken up civic issues, such as Development Plan, Open Space Policy and so on. Even the Budget 2016-17 seemed to have a strong BJP influence.

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