Proposal to hike infrastructure and amenities charges by 50 per cent

C Shivakumar

Chennai:

There may be a hike of 50 per cent in infrastructure and amenities charges for building if the state government clears a proposal by the Town and Country Planning Department.

Sources told Express a proposal was submitted to the government nearly two months ago to increase the infrastructure and amenties charges by 50 per cent of the present prevailing areas in commissionerate of town and country planning areas and Chennai Metropolitan Development Authority.

Currently, Rs 500 is collected from multi-storeyed buildings, which includes commercial or IT or industrial or institutional in Chennai Metropolitan Development Authority as well as Chennai Metropolitan Area and Rs 250 for multi-storeyed residential buildings besides Rs 250 for other than multi-storeyed building, which includes commercial building, IT building, group development and special building.

 

DTCP proposed the hike following a huge demand for creation of infrastructure and the requirement of funds.

Interestingly, it was in 2007, the government ordered that the infrastructure and amenities charges shall be collected not above Rs 500 per square metre for commercial and information technology buildings, Rs 1,000 per square metre for multi-storeyed buildings, Rs 200 per square metre for institutions and Rs 300 for industrial use.

It also brought in Rule 4 of the Tamil Nadu Town and Country Planning (Levy of Infrastructure and Amenities Charges) Rules, 2008 fixing a minimum rate of Rs 500 per square metre and maximum rate of Rs 1,000 per square metre for multi-storeyed building accommodating residential and commercial or information technology or industrial or institutional buildings besides a minimum of Rs 250 per square metre and a maximum of Rs 500 for commercial building, IT building, group development and special building.

Surprisingly, the collection of the cess in three instalments of 50 per cent, 25 per cent and 25 per cent was opposed by the CREDAI following slump in the construction industry. As a result in 2009, it was waived with the charges to be paid in lumpsum before the issue of planning permission.

Interestingly, if the proposal gets the nod of the government sources feel that it will generate revenue of Rs 500 crore revenue yearly.