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Nagpur's civic body earns record INR 414.52 crore through town planning receipts

#Taxation & Finance News#India#Maharashtra#Nagpur
Last Updated : 22nd Apr, 2025
Synopsis

The Town Planning Department of the Nagpur Municipal Corporation (NMC) reported its highest-ever revenue collection of INR 414.52 crore in the 2024-25 fiscal year. The majority of this income came through digital channels, with INR 376 crore received online. Key contributors to this milestone included premium charges for exclusions from FSI calculations, transit-oriented development premiums, and building development charges. The department's digital-first approach not only enhanced transparency and efficiency but also played a crucial role in boosting revenue. This development reflects the growing pace of urbanisation and structured development in Nagpur.

The Town Planning Department of the Nagpur Municipal Corporation (NMC) has achieved an all-time high revenue collection of INR 414.52 crore in the financial year 2024-25, indicating a robust push towards efficient urban planning and digital governance. Officials noted that this figure was the highest ever recorded by the department and credited the success largely to their digital-first approach.


Of the total revenue, approximately INR 376 crore was collected through online transactions alone. This digital collection helped streamline the process, making it more transparent and efficient for both developers and the municipal authorities.

A significant share of the revenue-around INR 108.91 crore-was attributed to premium charges collected for excluding areas such as staircases, lobbies, and passages from the permissible Floor Space Index (FSI) calculations. These exclusions allow developers to maximise usable space within projects, which in turn makes such premiums a lucrative revenue stream for the civic body.

Under Section 123 of the Maharashtra Regional and Town Planning (MRTP) Act, the department collected another INR 25.50 crore through offline means, specifically related to building and development charges. Additionally, INR 9.30 crore was earned through separate charges for FSI exclusions.

Among the digital transactions, building development charges contributed the highest amount-INR 82.45 crore. Transit-oriented development (TOD) premiums followed closely, bringing in INR 74.45 crore. This reflects the growing trend of developments around transit hubs, which are becoming increasingly valuable for both residents and investors due to improved connectivity.

Further online collections included INR 23.12 crore towards the labour welfare fund, INR 3.66 crore through fees for Transferable Development Rights (TDR), and INR 21 lakh for tree conservation efforts. Another INR 1.62 crore was gathered as conservation charges for heritage structures, highlighting the department's focus on balancing urban expansion with environmental and heritage considerations.

Additionally, the department received INR 60.53 crore under Section 124 of the Town Planning Act, related to building development fees. A sum of INR 2.45 crore was also collected from developers for the use of construction materials during building works.

In terms of building permissions, the department granted construction permits for 669 buildings during the fiscal year. Another 150 proposals were under active review at the time. However, 33 building proposals were rejected on grounds of non-compliance with development norms and regulations, reinforcing the department's adherence to statutory frameworks.

The performance not only enhances Nagpur's fiscal strength but also positions it as a model for integrated, transparent, and forward-thinking urban planning. As infrastructure and real estate developments gather pace, such milestones affirm the readiness of civic institutions to support sustainable and regulated expansion.

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