Title - Realty boom to glide in

CHANDIGARH: The areas around twin Metro corridors are set to get densely populated with more covered area allowed to land owners with an increase in floor area ratio (FAR). This will help UT cash in on the real estate boom around the tube station and corridors apart from facilitating transit- oriented densification to make more potential Metro users live within walking distance of the nearest station. Delhi government has already set up an Urban Transport Fund to capitalize on the property explosion by collecting additional taxes from the increase in property rates in such areas.The Delhi Metro Rail Corporation (DMRC) has pointed out that such projects are amenable to densification. "More people living around Metro system will not only reduce overall travel demand, but also sustainability of mass rapid transit system (MRTS) project," report says.Since large portions of the two corridors planned in the first phase will run along Madhya Marg and Jan Marg, it would be a tough call for UT to allow large scale redensification in the core area of the city."Invariably, there is a huge spurt in prices of property, especially along corridors in the catchment area. All these benefits go to private parties even though the spurt is due to government investment," it adds.As a part of innovate financing for Metro, DMRC has recommended that UT should cash in both on the enhanced property value and increased FAR in areas along the Metro system. The revenue thus generated can be used to fund the project and provide interest subsidy so that loans are sanctioned.

While sanctioning the Phase-III Delhi Metro project, Centre has decided that the Delhi government will set up a dedicated Urban Transport Fund to collect dedicated taxes and increase in FAR along Metro corridors.