Nagpur: The Standing Committee of Nagpur Municipal Corporation (NMC) on Friday gave its nod to appoint M/s Crisil Risk and Infrastructure Solution Limited for Value Capture Financing (VCF) for Nagpur Smart City Project. The job of the agency would be to suggest NMC the ways and means to generate newer sources of income for development of Smart City. In the first phase of the project, Punapur, Pardi, Bhandewadi areas of East Nagpur would be developed under Smart City project.
The proposal to appoint M/s Crisil Risk and Infrastructure Solution Limited was approved by the Standing Committee in a meeting held on Friday. The agency is affiliated with Central Government’s Urban Development Department. The report submitted by the Crisil would be first reviewed by NMC, then the State Government and finally Central Government. After the Centre’s nod, the NMC would be refunded Rs 63 lakh which is being paid to Crisil.
The NMC is paying Rs 63 lakh to M/s Crisil Risk and Infrastructure Solution Limited for generating additional sources of revenue for the Smart City project. The agency will study Land Value Tax, hike in property tax, Betterment Levy, FSI, TDR, change of land users, land pooling, zone relocation and other aspects.
The Municipal Commissioner had cleared the proposal to appoint M/s Crisil Risk and Infrastructure Solution Limited on June 29, 2017. In today’s meeting, the Standing Committee gave its seal of approval. Since the proposal was worth above Re 25 lakh, nod of Standing Committee is mandatory.
With the approval of the proposal, the development process under Smart City project would get off to a start. Initially, Central Government will provide Rs 100 crore and the State Government Rs 50 crore. The NMC’s share of Rs 50 crore will be given by Nagpur Improvement Trust. NMC is likely to receive Rs 1000 crore in the next five years. But the experiment of appointing the agency for generation of new resources is being done.
It may be recalled that M/s Crisil Risk and Infrastructure Solution Limited had prepared the project report related to Smart City as project management consultant.