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This Article is From Oct 04, 2010

Mumbai: Municipal Corporation eyes NGOs as tenants for vacant properties

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has come up with a novel plan to generate revenue. It wants to give the many buildings it owns to private parties for their activities, and also for maintenance and management.

The BMC has about 950 buildings housing community centres, dispensaries, libraries and gymnasiums. Some are in use. The ones that are not are buildings which the BMC received in lieu of extra floor space index (FSI) against designated reservation on plots from private builders. The BMC is now framing a policy to hand over such buildings to charitable and non-governmental organisations. This policy will generate about Rs150 crore.

For an organisation to be eligible for a building with 100-sq metre area, it must have a turnover of Rs1 lakh, and for a building with area from 100-sq metre to 500-sq metre, Rs10 lakh. For buildings of area more than 500-sq metre, an organisation must have a turnover of Rs1 crore. The BMC will get license fees and security deposits on the buildings from eligible organisations.

The buildings will be tendered. For the top category, the deputy municipal commissioner (improvement) will be the deciding authority.

For the other categories, zonal deputy municipal commissioners will be the decision makers.
A building will be given for only one year, following which a five-year extension may be provided.

Rahul Shevale, chairman, standing committee, BMC, supports the policy. "The BMC is not able to manage all.

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