Nagpur Improvement Trust (NIT) determined to give away its 32.39 acre land parcel for the Smart City Project at market rate. After NIT violated the government's order, it has decided to adjust the cost of its land share of Rs 250 crore to be disbursed to the civic body for the Smart City Projects.
This decision was taken in a meeting, including the board of trustees. The Nagpur Municipal Corporation (NMC) has raised this issue with the state government.
NIT has 32.39 acres of land in mouza Bharatwada and Punapur, which comes under the Smart City Project. NMC has allotted the plots and flats to the landowners, who gave their land for building roads and gardens. The proposal is to allot land by taking 32.39 acres of land of NIT.
Chairman of NIT, Manoj Kumar Suryawanshi, said that the special purpose vehicle (SPV) of the project, Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) should take the land at the market rate. He said that the value of the land would be adjusted in the share given to NIT.
NIT decided to give the land at market rate and adjust the amount in its land share. The market rate of the land is around Rs 50-60 crore.
According to the NMC, mouza Pardi, Punapur, Bharatwada, and Bhandewadi come under the Smart City Project. It received approval from the government of Rs 750 crore for the land, and the remaining Rs 250 crore would be borne by NMC.
The government announced that NIT would give Rs 50 crore each year for five years from 2016. Till now, NIT has paid only Rs 100 crore for the project. It has decided to adjust the remaining land cost in its remaining share of Rs 150 crore.
According to NMC officials, NIT's delayed payment of Rs 150 crore is a violation of the government's order, and NIT cannot adjust the land value in its share.