Nagpur: In a move aimed at creating a sustainable revenue model for urban development, the Nagpur Metropolitan Region Development Authority (NMRDA) has proposed the introduction of a 2 per cent additional cess on all land and building sale transactions within its jurisdiction. This levy would be imposed over and above the existing stamp duty, providing the authority with funds to repay loans taken for key infrastructure projects and to support future development initiatives.
Established under the Maharashtra Metropolitan Region Development Authority Act, 2016, and notified by the state government on March 4, 2017, the NMRDA serves as the planning and development body for the entire Nagpur Metropolitan Region, which includes several expanding urban and rural zones. Over the past few years, the authority has launched multiple large-scale projects aimed at improving connectivity and public amenities. Among these, the Outer Ring Road and the New Nagpur projects stand out as transformative ventures expected to reshape the region’s infrastructure landscape.
To finance these ambitious projects, NMRDA has already begun the process of raising funds through the Housing and Urban Development Corporation (HUDCO) and plans to approach other financial institutions in subsequent phases. According to official estimates, the combined financial requirement for the initial phase of the Outer Ring Road and New Nagpur projects is approximately ₹11,300 crore.
Officials have emphasized that repaying such a massive loan burden requires a stable, long-term revenue stream beyond routine government grants and administrative fees. To meet this need, the authority has proposed a 2% cess on property transactions, applicable to both the sale and purchase of land and buildings within the NMRDA limits.
The cess would be collected along with stamp duty, with the proceeds directly credited to the NMRDA. These funds will be utilized to repay infrastructure loans and finance ongoing and future development works, including roads, housing, and public utility projects.
The proposal has been drafted under Section 31 of the Maharashtra Metropolitan Region Development Authority Act, 2016, which empowers metropolitan authorities to levy such charges with requisite approvals. Once the NMRDA board clears the proposal, it will be submitted to the Maharashtra government for final approval.
If sanctioned, this measure would place NMRDA among a select group of metropolitan authorities in the state equipped with an independent, long-term financing mechanism to sustain its developmental agenda.
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